Running the BEAD Relay

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The Maine Connectivity Authority (MCA) is the state agency responsible for implementing the Broadband Equity, Access, and Deployment (BEAD) Program. The MCA team and partners have worked tens of thousands of hours over the past three years to develop and execute thoughtful planning, mapping, and grant administration processes as required by the National Telecommunications and Information Administration (NTIA). This has been completed while MCA has also facilitated over $250M of additional investments through other public and private funds, providing connections to more than 86,000 homes and businesses in Maine.

The BEAD Project Application process recently closed, and this is MCA’s opportunity to evaluate applicants and determine how BEAD funding will be distributed to approximately 28,000 homes and businesses and 2,500 Community Anchor Institutions (CAIs) like libraries, community centers, and healthcare facilities​​.

Initial results from the application process are highly encouraging, with applications for 385 project areas covering 79% of eligible locations. To complement broad participation, applicants have pledged to match BEAD funds with 39% private investment, resulting in an average subsidy of less than $5,000 per location. Of the project areas that received bids, 70% saw interest from more than one applicant, signaling a highly competitive process. MCA and our ISP partners are ready to get shovels in the ground, with more than 90% of applications committing to complete projects within two years following permitting.

Late last week, NTIA confirmed that anticipated updates to the BEAD program will make it infeasible for MCA to complete the program requirements in the previously defined timeframe. An updated policy notice is currently expected from NTIA in mid-May, although the final timing and the scope of the program changes under that notice are still to be determined. Ahead of the release of this updated program guidance, NTIA has stopped holding several procedural meetings necessary for states to continue progressing through the program’s execution.

NTIA’s changes to program guidelines could have a significant downstream impact on our ISP partners and the communities they’re planning to serve. While we wait to inform applicants of the specifics of those changes, we cannot simultaneously proceed with detailed good-faith negotiations at this time. As a result, we are matching the pace being set. MCA has a longstanding commitment to working closely with all of our partners, from NTIA to ISPs to communities, and we will continue to prioritize those relationships as we work through the evolution of BEAD.

With early signals of change coming from Congress and the incoming Secretary of Commerce, the MCA team has worked to proactively recommend opportunities for further refinement to accelerate, improve efficiency, and maximize BEAD Program outcomes. This was reflected in MCA’s March letter to US Department of Commerce Secretary Howard Lutnick, offering the following priorities:

States and Territories are key to success.

Invest in the right technology for the right place.

Enable a comprehensive connectivity strategy.

Reduce barriers to deployment and administrative burden.

Maine’s success is marked by developing diverse solutions for different places, all in pursuit of achieving our ultimate goal–connecting all people in Maine. In some regions, this was driven by public-private partnerships where demand for fiber networks was present. In others, this was done in the context of Maine's challenging geography and terrain. In 2024, we launched the first-in-the-nation Working Internet ASAP program with Starlink to provide an LEO option for the hardest-to-reach locations across our state. This program is purposefully designed to integrate with BEAD, allowing us to seamlessly braid state and federal funding sources to achieve our end goal that much faster. By applying a suite of solutions, we can expand a competitive and resilient market across the State, benefiting customers, communities, and providers alike.

Investors are ready. Communities are ready. ISPs are ready. The workforce is ready. Consumers are ready. People in rural areas are REALLY ready. We intend to move forward as expeditiously as possible, while minimizing the potential for any duplicative work and any implications for an extended timeline. We will begin initial conversations with applicants this week, using this opportunity to compile as much information as possible and prepare to implement updated NTIA requirements as soon as they are communicated.

We look forward to ongoing opportunities for engagement with our partners at NTIA as we gain increased clarity around the scope and scale of upcoming program changes. MCA stands ready to quickly complete the execution of the BEAD program, effectively and efficiently deploying funding and truly connecting everyone in Maine.