BEAD and BABA: Corning's Experience in Supporting Fiber Broadband Network Expansion | Corning

Bob Whitman
Published: September 19, 2024

As the Broadband Equity, Access, and Deployment (BEAD) program gets underway, states are completing the challenge process and a few have launched their subgrantee selection process. We're expecting this to trigger a wave of network planning and engineering. However, to ensure successful buildouts, network providers will need to stay abreast of BEAD program timeline updates, requirements, and other rules, especially in securing compliant supply. Particularly, operators will need to closely assess their Fiber-To-The-Home (FTTH) network components to ensure compliance to the requirements set forth by the Build America, Buy America Act (BABA) during their network planning process. 

In this blog, I delve into the BEAD program, its timeline and requirements to help service providers navigate this broadband funding opportunity with confidence. As the pioneer of low loss optical fiber, Corning is uniquely positioned and ready to support these builds with optical solutions specifically designed for rural broadband deployments, minimizing time, labor, and costs. Just recently, our hardened connectivity solutions officially passed over 100 million homes globally. At Corning, we're thrilled to expand that number every day, providing more individuals with the opportunity to experience the benefits of high-speed broadband.

Unveiling the BEAD Program

The BEAD program, a product of the 2021 Infrastructure Investment and Jobs Act, aims to bridge the digital divide by expanding equitable broadband access across the U.S. Its $42.5 billion in federal funding, plus a minimum 25% match, is directed towards unserved and underserved areas, with an emphasis on broadband access, affordability, and adoption.

At Corning, we see this program as a momentous opportunity to replicate the milestone of rural electrification a century ago. The success of this once-in-a-lifetime initiative hinges on the careful selection of future-ready technology. Our commitment to innovation over the years has resulted in industry-leading fiber optic solutions that facilitate swift and cost-effective FTTH network deployment. Optical fiber, the core of these networks, offers nearly unlimited bandwidth, ensuring future-readiness, and making "Internet for All" an attainable goal.

The Importance of Fiber: Building a Generational Network

When building a "generational network" meant to serve communities for decades, the choice of broadband technology is paramount. This decision-making process should consider the technology's longevity, upgradeability, and potential to catalyze economic growth in the communities it serves. Among available options, fiber stands out as the most future-ready broadband technology, best able to adapt to increasing bandwidth demands and withstand the test of time. By choosing fiber, communities are essentially future-proofing their networks. Fiber's nearly unlimited bandwidth and upgradability reduce the need for costly future replacements, repairs, and maintenance.

Additionally, communities equipped with fiber broadband tend to experience superior economic growth when compared to communities with other or no Internet services, as outlined by several studies. For instance, a town of 100,000 households with fiber broadband could gain over $78 million per year of additional primary revenue from home-based businesses. Furthermore, the city of Chattanooga, Tennessee attributed 40% of jobs created over ten years to their community-wide fiber network, the first in the U.S. to provide 10 gigabit service to all residents in 2015.

BEAD Timeline and BABA Compliance

The BEAD timeline, which began with all 56 Eligible Entities submitting their Letters of Intent on July 13, 2022, has set the course towards achieving 'Internet for All'. This goal can only be realized by complying with the BABA Act which mandates that U.S.-made materials be used in all government-funded infrastructure projects.

As a testament to our commitment to connecting all Americans and ensuring strong U.S. supply of optical fiber and cable, Corning operates five cable plants and two fiber plants in North Carolina. We've invested more than $500 million in fiber and cable manufacturing since 2020, nearly doubling our ability to serve the U.S. cable market. In addition, Corning is actively investing in its U.S. domestic manufacturing capacity to produce BEAD/BABA-compliant optical connectivity product. Our focus remains on championing U.S. manufacturing and job creation. And we are ready to meet BEAD demand with end-to-end passive optical solutions, from fiber to cable to connectivity, all in adherence with BEAD, BABA and with a commitment to the growth of American jobs and domestically made products.

While the industry has faced supply constraints in the past, the clear requirements of the BEAD program allow for accurate planning and forecasting, mitigating the fear of supply imbalances. At Corning, we believe in collaborating with our customers to meet their supply needs.  We're committed to supporting our customers in executing their government-funded projects successfully.

While transitioning some products to new manufacturing processes to meet BEAD and BABA compliance may marginally increase operating and logistical costs, we're dedicated to keeping cost impacts to a minimum. Our focus remains on protecting our customers' interests by providing cost-effective, BEAD/BABA-compliant end-to-end passive optical solutions while contributing to the growth of American jobs and domestically made products.

To summarize, the BEAD program presents an extraordinary opportunity to make high-speed broadband universally available in the U.S., and Corning is committed to being a strategic partner in this initiative. We remain focused on providing cost-effective, high-quality solutions that are produced in America by American workers, as necessitated, further emphasizing our dedication to domestic production and job creation. Our technical expertise, considerable investments, and decades-long experience in U.S. manufacturing uniquely position us to meet the anticipated demand from the BEAD program. We stand ready to help shape the future of broadband for all.