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Infrastructure deal to pump $65 billion into broadband programs

The $1.2 trillion bipartisan infrastructure deal that has been passed by Congress will put $65 billion into broadband expansion, affordability and middle-mile infrastructure, alongside other investments in transportation infrastructure, electric vehicle infrastructure, public transit and environmental clean-up, as well as electrical grid modernization.

“I don’t think it’s an exaggeration to suggest that we took a monumental step forward as a nation,” President Joe Biden told reporters in a White House press briefing last week. He went on to describe the deal as a “once-in-a-generation investment that’s going to create millions of jobs modernizing our infrastructure — our roads, our bridges, our broadband, a whole range of things — to turn the climate crisis into an opportunity.  And it puts us on a path to win the economic competition of the 21st century that we face with China and other large countries and the rest of the world.”

While there is $65 billion specifically dedicated to broadband, other provisions of the bill may ultimately benefit the wireless industry as well, particularly the additional $5 billion in electrical grid resilience and smart grid improvements that will probably rely at least in part on private and commercial wireless technologies. In addition, the deal also provides $17 billion for port infrastructure and $25 billion for airport modernization to expedite commerce and reduce congestion and emissions; and also provides $50 billion to increase infrastructure resilience against natural disasters and cyber attacks.

While there has been some debate over whether broadband should be considered “infrastructure,” the majority of both Democrat and Republican Senators have at this point agreed that it is, in fact, “essential to full participation in modern life” in this country, as it was put when the bill passed the Senate in the fall. Specifically, the bill dedicates more than $42 billion in funding that will be directed to states in order to ensure that broadband is deployed to rural and inadequately served areas, including Tribal areas. It also sets aside around $14.2 billion to address broadband affordability through subsidies, and promote digital equity and digital literacy training.

The passage of the infrastructure bill by the House was hailed by a number of telecom players. The Wireless Infrastructure Association called the investment “unprecedented” and said that it will help to “close the digital divide and win the race to 5G.” 

“WIA commends the bipartisan efforts behind this monumental investment in America’s economic future, which will rely on 5G,” said WIA President and CEO Jonathan Adelstein. “By approving funding that can include wireless broadband, Congress enabled innovative, cost-effective, and geographically appropriate mobile and fixed wireless service to connect consumers more quickly and efficiently. Now we need the Administration and states to implement the law consistent with its mandates for technological flexibility and for prioritizing applicants that can deploy faster to unserved areas, which certainly includes wireless providers.”

CCA President and CEO Steve Berry said that the legislation “contains important provisions designed to enhance broadband accessibility for all Americans, especially those in rural, unserved, and underserved areas. Wireless is the choice of consumers, and upon signature by the President, I look forward to working with policymakers to ensure areas in need have access to critical funding that will provide consumers with the mobile connectivity they need and desire.”

The Wireless Internet Service Providers Association also hailed the bill’s passage, saying that the organization “[looks] forward to the historic opportunity in front of us, and we pledge our steadfast efforts to help the states and localities make good on Congress’ tremendous promise for the American people.”

Biden said on Friday that he planned to have a public signing of the bill soon.

ABOUT AUTHOR

Kelly Hill
Kelly Hill
Kelly reports on network test and measurement, as well as the use of big data and analytics. She first covered the wireless industry for RCR Wireless News in 2005, focusing on carriers and mobile virtual network operators, then took a few years’ hiatus and returned to RCR Wireless News to write about heterogeneous networks and network infrastructure. Kelly is an Ohio native with a masters degree in journalism from the University of California, Berkeley, where she focused on science writing and multimedia. She has written for the San Francisco Chronicle, The Oregonian and The Canton Repository. Follow her on Twitter: @khillrcr