NRECA is urging federal regulators to take steps to avoid unnecessary overbuilding of broadband networks as states prepare to make their final funding awards to electric cooperatives and other internet service providers under the $42.5 billion Broadband Equity, Access and Deployment (BEAD) program.

To guard against duplication of service, the federal government should require states to institute a “true-up” process for determining BEAD-eligible locations before approving final awards, NRECA CEO Jim Matheson said in an Oct. 31 letter to the National Telecommunications and Information Administration.

Such a process could address “significant discrepancies” between the Federal Communications Commission’s December 2023 national broadband map, subsequent state challenge processes, and rural networks that have been built or started construction since the BEAD-eligible locations were set.

“Taking steps to avoid overbuilding with BEAD dollars would have many positive effects,” Matheson stated. “It would help ensure BEAD dollars can go further toward bringing priority and reliable broadband to more unserved locations and reduce the number of locations relegated to substandard alternative technologies.”

Avoiding overbuild could also support existing internet service providers “by not subsidizing a competitor in an area where fiber broadband networks already exist,” he added.

BEAD is a federal grant program formed through the bipartisan infrastructure law of 2021 to bring high-speed internet to unserved and underserved communities, including many rural areas.

More than 200 electric co-ops are working to provide broadband service, either directly or through partnerships. Co-ops can also allow cable and telecommunications companies to attach broadband infrastructure to their poles, requests that will likely surge as a result of BEAD funding.

“In the time since [BEAD-] eligible locations were determined and the state map challenge processes occurred, many rural ISPs have continued to construct fiber broadband networks and connect new customers,” Matheson said in the Oct. 31 letter. “Due to this ongoing progress, I encourage NTIA to require states to establish an expedited ‘true-up’ process for BEAD-eligible locations prior to approval of final awards.”

In addition to sending the letter to NTIA, NRECA has created a template letter that NRECA Broadband participating co-ops and statewide associations can use to request a location “true-up” process from their state broadband offices.