Hi, Tim here!

Two major shifts in broadband policy have changed the landscape for 2025: The $42.45 billion BEAD program is frozen, and AT&T just pulled out of New York over mandated affordable plans.

The takeaway? 2025 broadband expansion faces serious hurdles—but providers that pivot to alternative funding and creative market solutions will come out ahead.

Let's dive into what this means for the industry.

What’s the Big Story?

BEAD Was Supposed to Close the Digital Divide. Now It's in Limbo.

The Broadband Equity, Access, and Deployment (BEAD) program represented the single biggest broadband investment in U.S. history—until last week. A new executive order has frozen federal infrastructure funds—including the $42.45 billion allocated for BEAD—throwing the industry into sudden uncertainty.

The timing couldn't be worse. States had just received their allocations and were finalizing detailed plans. Construction firms were mobilizing resources. ISPs were mapping deployment strategies. Now everything hangs in the balance.

Why This Matters

The freeze creates cascading effects throughout the industry:

• ISPs and construction firms that invested in preparation now face costly delays.

• State agencies must navigate a complex choice: proceed with projects and risk funding disappearing, or pause everything and potentially lose construction seasons.

• Small and mid-sized ISPs that budgeted around BEAD funding could face serious financial pressure.

• Rural and underserved communities waiting for better connectivity face indefinite delays.

The uncertainty doesn't just affect providers—it disrupts entire deployment strategies.

What Happens Next?

Short-term prospects are uncertain:

• The NTIA (which oversees BEAD) is pushing for an exception, but there's no guarantee of success.

• State broadband offices are scrambling to develop contingency plans.

• Industry associations are mobilizing to lobby for a quick resolution.

Long-term, this could become entangled in election-year politics, potentially delaying funding well into 2025. For companies that were counting on BEAD to fuel growth, waiting isn't a viable strategy.

What's Plan B?

Instead of waiting for Washington to sort itself out, the best strategy is to diversify revenue streams, strengthen private-sector partnerships, and secure alternative funding sources.

Here's where smart providers are finding opportunities:

• State & private funding remains active: Many states still have substantial broadband grants in motion, and private-sector investment in underserved areas is growing

• Utility & defense markets offer new opportunities: Grid modernization, EV charging infrastructure, and military network upgrades are creating steady demand

• Regional focus can pay off: Smaller ISPs and enterprises still need network expansion, private fiber, and last-mile solutions

• Public-private partnerships are gaining traction: With BEAD on hold, many local governments are taking matters into their own hands—seeking direct partnerships with ISPs to keep projects alive. This shift opens the door for creative funding models that don’t rely solely on federal grants.

Top News Lately

BT Nears Sale of Irish Operations BT is finalizing the sale of its Irish wholesale and fiber assets to Cordiant Digital Infrastructure, potentially creating Ireland's largest open-access fiber network.

Vodafone Enables Mobile Calls via Satellite Successful testing of direct-to-satellite mobile calls opens new possibilities for remote area coverage without specialized equipment.

Comcast Loses 139,000 Broadband Subscribers Despite strong revenue from streaming and studio segments, Comcast faces steeper-than-expected broadband subscriber losses.

Can Broadband Be Affordable If Providers Pull Out?

In our last issue, we covered New York's Affordable Broadband Act, which mandated low-cost internet plans to expand access. Now we're seeing the first major pushback: AT&T has pulled its 5G Internet Air service from New York entirely, calling the state's price caps unsustainable.

Under the law, ISPs with over 20,000 customers must offer $15/month for 25Mbps and $20/month for 200Mbps. AT&T says those rates don't work financially—so instead of complying, they left the market.

This isn’t just a New York issue—other states considering similar laws will be watching this closely.

What This Means for Broadband Policy:

This development raises crucial questions about broadband policy:

• Affordability mandates could backfire if major providers exit markets rather than operate under tight margins.

• Other states watching New York's experience may need to rethink their approach to price regulation.

• The industry needs new models that balance accessibility with provider sustainability.

The Bottom Line

Whether it's federal funding freezes or state-level price controls, 2025's challenges demand a new playbook. The providers who will thrive aren't just waiting for perfect conditions—they're building resilient business models that can adapt to whatever comes next.

What’s New With Us?

I’ll be speaking at FISPA Live 2025 on Feb. 19, joining Chad Johnston (Hexatronic) for the panel "Your Construction Toolbox: Driving Innovation and Efficiency."

If you’ll be in New Orleans, don’t miss it—should be a great discussion.

Hope to see you there!

Got a topic you'd like us to dive into? Just reply to this email—we read every message! Otherwise, we’ll see you in the next edition.