The Fiber Broadband Association (FBA) and Cartesian unveiled their BEAD Threshold Financial Model that helps states calculate their Extremely High Cost Per Location Threshold (EHCT) for fiber broadband deployments using Broadband Equity, Access, and Deployment (BEAD).
The sophisticated tool leverages geospatial analysis to build a financial model that states can use to develop their own cost thresholds for fiber deployments.
The BEAD Threshold Financial Model allows states to test various inputs and visualize the implications of different thresholds. It considers the extent of fiber coverage, the extent of alternative broadband technology coverage, and whether any funds remain. As a starting reference point for states to leverage, FBA and Cartesian ran the model using realistic but general assumptions, leveraging national average build costs and simple provider contribution estimates, to develop a reasonable, directionally-accurate threshold for each state.
“The NTIA has just allocated $40 billion to the states, and now it is the states’ turn to use this funding to maximize fiber deployments by setting the correct EHCT. Everyone recognizes this task is critical, but also challenging. Our BEAD Threshold Financial Model addresses that challenge head-on,” said Gary Bolton, President and CEO of the Fiber Broadband Association. “Now that we’ve created this tool we’re making it available to all states and we’re willing to work directly with each state to use the model with different variables and look forward to that opportunity. At the end of the day, setting a reasonable threshold is essential to the success of the BEAD program and our ability to connect every American to fiber broadband service.”
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