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US broadband grant rules shut out small ISPs and municipalities, advocates say (arstechnica.com)

submitted 1 year ago by DannyMac@lemmy.world to c/technology@lemmy.world

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The biggest Internet service providers will dominate a $42.45 billion broadband grant program unless the Biden administration changes a rule requiring grant recipients to obtain a letter of credit from a bank, according to a joint statement from consumer advocacy groups, local government officials, and advocates for small ISPs.

The letter sent today to US government officials argues that "by establishing capital barriers too steep for all but the best-funded ISPs, the LOC [letter-of-credit requirement] shuts out the vast majority of entities the program claims to prioritize: small and community-centered ISPs, minority and women-owned ISPs, nonprofits, and municipalities."

The rule is part of the Broadband Equity Access and Deployment (BEAD) program that's being administered by the National Telecommunications and Information Administration (NTIA).

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[–] Rapidcreek@reddthat.com 12 points 1 year ago (2 children)

Having been in the broadband delivery business at all levels, I sadly report that small ISPs can't compete in this marketplace to begin with. Reason being they don't have the investments needed for last mile delivery. If they had the money needed to install landlines, or buy frequency leases, or fly a global satellite network then they wouldn't be a small ISP. The best that they can do is develop resell relationships.

[–] greenskye@lemm.ee 2 points 1 year ago (1 children)

Part of the reason they can't compete is cause of all the bullshit roadblocks the existing players put in their way. This was made readily apparent anywhere Google fiber tried to rollout and all of the crap they had to deal with to just roll out fiber.

It's not that they don't have the money to install the infrastructure, it's that they don't have enough money to fight all the legal battles just to do their jobs.

[–] Rapidcreek@reddthat.com 0 points 1 year ago* (last edited 1 year ago)

Not the existing players, your government. Telephone companies gained right of way from your state because everybody wanted a telephone. Cable companies made a deal with your municipality for right of way by paying for it with a non-compete clauses. Power companies did the same thing. Why would they put millions of dollars worth of infrastructure in the ground for anything less? Your state and local government, and by extension you, sold it to them.

[–] PalmTreeIsBestTree@lemmy.world 1 points 1 year ago (1 children)

The only ISPs that can compete are ones using existing power line infrastructure, so utility companies and cooperatives.

[–] Rapidcreek@reddthat.com 0 points 1 year ago (1 children)

Tried that. You get a lot of errors in power line delivery.

[–] PalmTreeIsBestTree@lemmy.world 3 points 1 year ago (1 children)

My grandmother lives in a very rural area and gets gigabit because of her cooperative. They do work in some places at least.

[–] Rapidcreek@reddthat.com -1 points 1 year ago

If it worked well at scale, the power companies would be in with both feet. It doesn't