What's Happening?
The Colorado Broadband Office, led by Executive Director Brandy Reitter, has reported a significant shift in the state's Broadband Equity Access and Deployment (BEAD) program bids towards low-Earth orbit (LEO) satellite options. This change comes during the 'Benefit of the Bargain' round, where bids from fixed wireless access (FWA) service providers have also seen an uptick. Previously, the program emphasized fiber, with 70% of bids favoring fiber solutions. However, the current bid mix has shifted to 60% LEO and FWA, with a stronger emphasis on LEO satellites. This shift is attributed to aggressive pricing and targeted locations by LEO service operators. The revised BEAD program, which prioritizes cost-based approaches, has led to potential savings of $200 million to $400 million for the state. The program's changes were announced by the US Commerce Department, requiring states to submit final proposals by September 4.
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Why It's Important?
The shift towards LEO satellite options in Colorado's BEAD program reflects broader trends in broadband deployment strategies, particularly in rural and mountainous regions. This change could significantly impact the telecommunications industry by promoting more cost-effective and technologically diverse solutions. The emphasis on LEO satellites may benefit areas with lower population density, where traditional fiber infrastructure is less feasible. The potential savings for Colorado highlight the financial advantages of adopting satellite technology, which could influence other states to reconsider their broadband strategies. This development may also affect companies involved in satellite technology, such as SpaceX, which has advocated for LEO solutions in other states.
What's Next?
Colorado and other states are in the process of finalizing their BEAD program proposals, with a deadline set for September 4. The outcome of these proposals will determine the allocation of resources and the future direction of broadband deployment in the state. Stakeholders, including LEO service providers and FWA operators, are likely to continue advocating for their technologies. The revised program's focus on cost-effective solutions may lead to increased competition among providers, potentially driving innovation and lowering costs for consumers. As states finalize their proposals, the telecommunications industry will be closely monitoring the impact of these changes on broadband access and deployment strategies.
