States seeking to use rural broadband deployment funds must avoid imposing affordability requirements on Internet Service Providers (ISPs). The NTIA's updated FAQ indicates that Broadband Equity, Access, and Deployment (BEAD) funds are contingent on states not enforcing fee structures on ISPs. Currently, only New York has laws that require large ISPs to offer affordable internet service. The IIJA expressly prohibits the government from regulating broadband rates deemed affordable for low-income consumers, complicating the regulatory landscape for broadband pricing.
The Infrastructure Investment and Jobs Act (IIJA) prohibits the government from setting broadband rates that are deemed affordable for low-income access, according to the NTIA.
The NTIA's updated FAQ indicates that BEAD funds are contingent on states not imposing fee schedules on ISPs, limiting laws for broadband services.
Currently, only New York's law mandates large ISPs to provide cheap service, revealing the limited regulatory landscape for broadband pricing.
The Trump administration criticized the BEAD NOFO for implying rate regulation by showcasing specific dollar amounts for proposed low-cost service options.
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