this post was submitted on 07 Sep 2023
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596
US broadband grant rules shut out small ISPs and municipalities, advocates say (arstechnica.com)
submitted 1 year ago by [email protected] to c/[email protected]
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The biggest Internet service providers will dominate a $42.45 billion broadband grant program unless the Biden administration changes a rule requiring grant recipients to obtain a letter of credit from a bank, according to a joint statement from consumer advocacy groups, local government officials, and advocates for small ISPs.

The letter sent today to US government officials argues that "by establishing capital barriers too steep for all but the best-funded ISPs, the LOC [letter-of-credit requirement] shuts out the vast majority of entities the program claims to prioritize: small and community-centered ISPs, minority and women-owned ISPs, nonprofits, and municipalities."

The rule is part of the Broadband Equity Access and Deployment (BEAD) program that's being administered by the National Telecommunications and Information Administration (NTIA).

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[–] [email protected] 0 points 1 year ago

Yeah I also don't understand how it's a barrier. Unless I'm thinking of the wrong thing I know some people who had to get a letter of credit when getting some service at their new property in order to not have to pay some equipment deposit. As private individuals (although commercial property with no history of income), it took them a phone call, 2 emails and about 30 minutes to get one.

I really can't see any small ISP that isn't some scheme having trouble getting one.