Amid the economic volatility today, a significant digital divide still exists between urban and rural communities, where many across the US have limited access to acceptable broadband speeds. Eighty-five percent of Americans consider the internet a utility along with electricity, gas or water, yet only 50% of homes in the continental U.S. have true broadband speed of 25Mbps download or higher.
Broadband is essential for financial and social inclusion, and disproportionate access further contributes to the skills gap in the country. Fortunately, the Broadband Equity Access and Deployment Program (BEAD) is set to allocate billions of dollars in funding this year to help bridge the divide, and several states are well underway in their planning to utilize it.
Assessing current BEAD strategies
More local and state government leaders are looking to deploy broadband infrastructure with BEAD in 2025, especially as Final Proposal deadlines approach and a pending reform announcement comes in mid-May. Nevada’s broadband director, Brian Mitchell, said they were already planning projects funded by the BEAD program for this summer, despite an ongoing review from the Trump administration. Additionally, Louisiana and Delaware have already received approval from the National Telecommunications and Information Administration (NTIA) of their Final Proposals and are waiting for final sign-off from the National Institute of Standards and Technology (NIST).
Other states are not far behind, with 35 out of 56 Eligible Entities already selecting ISPs to build, operate and maintain the new infrastructures in selected areas.
Although $42.5 billion will be allocated to support the development of telecom networks, there are still obstacles standing in the way. For example, tax burdens on federal broadband grants like BEAD have held many smaller ISPs back from deploying much-needed infrastructure projects, especially in rural and underserved areas. With already tight budgets, efforts like the reintroduced Broadband Grant Tax Treatment Act would provide a critical lifeline to these ISPs, allowing them to accelerate broadband access and narrow the divide that’s leaving communities behind in connectivity.
Another challenge is the fact that once received, funding for broadband buildouts has been historically put towards outdated processes and infrastructure. This includes monolithic systems that can be complex, costly and have limited power and space efficiencies for operators. For well over two decades, operators have invested in this legacy infrastructure, making it expensive and difficult to deploy faster broadband speeds in rural communities.
How disaggregation can maximize BEAD funding
To make upcoming BEAD funding go further, operators must finally take advantage of more innovative technologies that can drive down the cost of building and running networks.
The only path forward is network disaggregation, or the process of separating hardware and software. Operators can run software on their choice of low-cost open hardware like bare-metal switches, rather than relying on traditional, costly monolithic vendor systems. This flexibility and scalability in network management and maintenance can help states maximize every dollar to build more adaptable, future-proof networks that meet the needs of underserved communities across the country.
Network disaggregation will be especially crucial if today’s economic uncertainty continues. The pending tariffs are threatening telecom supply chains, and as a result, some vendors may soon increase the prices of their software and hardware – putting a greater strain on operators. Disaggregation coupled with BEAD funding would be the answer to delivering affordable internet despite this turmoil.
Looking ahead
Operators must adopt the right approach if they hope to close the digital divide in an unpredictable economic and political state. AT&T, Deutsche Telekom, Telefónica and Verizon are already deploying disaggregation in the network core, fixed edge and mobile RAN. For the first time in years, they are getting more vendor choice rather than less, helping them to connect folks across the world. It’s time for others, including regional ISPs, to follow suit.
Disaggregation opens the door to alternative technology that can deliver twice the results for the same cost, which will be key in delivering better connectivity across the U.S.
