Unpacking Approved BEAD Volume 2s: North Carolina

NTIA recently approved North Carolina’s Initial Proposal Volume 2. The ACLP compared the final version with the version submitted by the state to NTIA last fall. A redlined comparison is available here. The following changes were evident:

Subgrantee Selection Process

Project Area Units

The state switched from setting PAs at the county-level to using hexbins. Applicants will be able to create their own PAs using hexbins.

Scoring - Minimal BEAD Outlay

The state has simplified how it will award points in this category. Half the points will be awarded on a weighted basis relative to the lowest cost per location. The other half of the points will be awarded based on the size of the match included in the proposal.

Scoring - Affordability

The state has adopted an “all or nothing” approach to awarding points in this category. Per the final scoring rubric, applicants will either receive full points or no points depending on their commitment to offering symmetrical gig service at either the lowest cost that they offer elsewhere in the state or at a price that is lower than the FCC URS benchmark rate.

Scoring - Fair Labor Practices

The scoring approach remains largely the same for existing ISPs. However, consistent with changes made by most other states, North Carolina has created a mechanism by which new entrants can receive max points - they must commit to one or more “optional” labor practices (existing ISPs will receive only 2 points for making similar commitments).

Scoring - Secondary Criteria

The state made several adjustments to these criteria, including:

• Increasing the number of points, from 2 to 5, available for local/Tribal support.
• Will now award 7pts to applicants that have submitted an approved Climate Resiliency Plan and explained how the costs to implement the plan have been included in the project cost.

Low-Cost Option

The state adjusted the price-point for the low-cost option. In its submitted V2, the state set the price at $30/month. In the approved plan, the state detailed the following framework for setting the price-point:

“The low-cost option shall be offered at a price that does not exceed the highest price listed in the FCC’s 2024 Urban Rate Survey data for Fixed Broadband Service for a service offering in North Carolina that provides a download speed of 100 Mbps, upload speed of 20 Mbps, and an unlimited capacity allowance. A proposed low-cost option below this price will presumptively be approved; except if an applicant currently provides service in the state, the applicant shall offer the low-cost broadband service option at a price that does not exceed the lowest price they currently offer for 100/20 Mbps service (as long as that price does not exceed the Urban Rate Survey price described above).”