As billions of dollars in federal funding flows into states through the Broadband Equity, Access, and Deployment (BEAD) program, the success of expanding internet access hinges on the efficiency of local permitting processes. We believe that local and state broadband agencies must prioritize reforms that empower the market—not bureaucracy—to drive broadband expansion forward.
The BEAD program's $42.45 billion investment is a historic opportunity to close the digital divide, but success will be based on whether or not local governments streamline their permitting processes. A recent op-ed from StateScoop highlights that these permitting processes will play a crucial role in deploying broadband projects. Unfortunately, with the majority of permitting responsibilities resting on local governments, the risk of bureaucratic bottlenecks stalling broadband deployment is high.
To avoid delays and maximize the impact of BEAD funding, local and state broadband agencies should focus on shovel-ready and last-mile projects that are already primed to receive these funds. These projects have already laid the groundwork, and likely already have received their permitting, from private sector providers and are primed to receive funding and begin construction immediately. They can bring high-speed internet to underserved communities far more quickly than new municipal ventures bogged down in bureaucratic delays.
By reforming permitting processes to be more efficient and predictable, local governments can help keep satisfying market demands at the forefront, allowing private companies to leverage their expertise and resources to meet community broadband needs. This approach minimizes government interference, keeps costs in check, and ensures taxpayer dollars are used responsibly.
Some may argue that creating municipal broadband utilities would help alleviate the permitting backlog by having a dedicated department focused on broadband deployment. While this may sound appealing on the surface, it ignores the inefficiencies and risks associated with expanding government roles in broadband.
Municipal broadband utilities often require significant taxpayer-funded investments to build and maintain infrastructure. This "investment" comes with high operational costs, the need for specialized staff, and the risk of duplicating services that private companies already provide more effectively. Expanding government control introduces more layers of bureaucracy, slows down decision-making, and diminishes accountability.
Instead of expanding government, local governments should focus on streamlining permitting processes that speed up broadband deployment by the private sector. Reforms could include setting clear timelines, reducing redundant inspections, and implementing transparent, consistent guidelines that make it easier for private providers to navigate the permitting landscape. These are simple, but effective ways any municipality could ensure funds flow without bottlenecking.
Private sector providers have a demonstrated track record of rapidly deploying broadband infrastructure and adapting to market demands. Unlike government-run utilities, private companies have the incentive to move quickly, innovate, and efficiently serve their customers. By reforming local permitting processes, municipalities can clear the path for these companies to deliver high-speed internet where it’s needed most.
Public-private partnerships (PPPs) are also valuable tools that local governments can use to combine public oversight with private sector efficiency. By fostering early communication between permit seekers and permitting authorities, and by providing clear, streamlined processes, local governments can avoid the pitfalls of government overreach while ensuring successful broadband expansion.
Local governments should view themselves as partners in the broadband expansion process, not competitors. They should work collaboratively with private providers to identify barriers, streamline approvals, and support projects that can deliver immediate results. By focusing on permitting reform, municipalities can play a crucial role in making sure broadband expansion is market-driven, efficient, and effective.