ACLP Files Comments on Tennessee’s BEAD Initial Proposal Volume 2
The ACLP recently filed comments regarding Tennessee’s BEAD Initial Proposal Volume 2. The full comments are available here.
The ACLP’s comments focused on the following aspects of Tennessee’s Volume 2:
Affordability Scoring & Pricing. Tennessee’s proposed scoring for the affordability of gig services provided over BEAD-funded networks is confusing, with points spread across 4 sub-categories, only two of which relate to the cost of broadband service. The ACLP proposed that the state adopt a more straightforward sliding-scale approach that leverages the FCC Urban Rate benchmark as its reference price (as currently structured, the state’s proposed scoring for gig service would award max points to any applicant that prices a gig for less than $250/month, an amount that suggests the state might have made an error in its scoring formula). The ACLP also noted that, regardless of the approach that the state ultimately takes, any attempt by TN to set a price for broadband could be considered a form of rate regulation and might be vulnerable to legal challenge.
Low-Cost Option. Tennessee has a strong track-record of generally taking a hands-off approach to broadband. As noted by the ACLP in a profile of broadband in the state (attached to the comments), Tennessee has typically opted to not meddle unnecessarily in the broadband market and has instead focused its attention on removing barriers to broadband deployment. As such, the ACLP observed that it is curious that the state has proposed a specific price for the low-cost broadband option. Most states have embraced the NTIA model plan, which sets the price for the low-cost option at $30. Some states, however, will allow applicants to propose their own price for the low-cost option. This approach, which the ACLP recommended Tennessee embrace, is more in alignment with the state’s historical approach to broadband and avoids the potential for the setting of a price for the low-cost option triggering litigation (even though the IIJA requires the low-cost option and permits the states and NTIA to set the parameters of the option, the statute is silent vis-à-vis the ability of states to require a specific price).
Michael Santorelli is the Director of the ACLP. Alex Karras is a Senior Fellow at the ACLP.