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Evaluating State Broadband Efforts: Insights from the Broadband Barometer Project

AEIdeas

April 19, 2024

As the country races into its digital transformation, the expansion of broadband across the United States has become a pivotal undertaking. There are numerous state and federal efforts, fueled largely by over $70 billion of federal taxpayer dollars. States are at the forefront, receiving about $42.5 billion to implement the Broadband Equity Access and Deployment (BEAD) program under the watchful eye of the National Telecommunications and Information Administration (NTIA). In many ways, it’s a collective effort and the agencies and persons involved should be commended for their efforts.

But historically, such initiatives have stumbled due to three key shortcomings: a lack of competitive processes, insufficient accountability measures, and a dearth of transparency that would otherwise shine a light on program performance for policymakers and the public. In some cases, the government distributed funds to companies without specific funding conditions, resulting in minimal broadband expansion and billions of dollars wasted. In others, political meddling skewed the allocation of funds. Money went to the well-connected, who added little to the country’s inventory of broadband connections and who often closed their doors once the taxpayer money was spent. And some programs, such as those intended to ensure affordability for the poor, continued for years without serious review or delivering tangible benefits.

At the American Enterprise Institute (AEI), we’ve been closely monitoring and evaluating these efforts through our Broadband Barometer Project. The goal is simple yet ambitious: to maximize the value of each dollar invested in state broadband programs and avoid the pitfalls of previous federal initiatives.

The Broadband Barometer Project, led by our team of six scholars, aims to help state and federal leaders avoid historical inefficiencies in broadband programs by drawing upon academic research and lessons from past initiatives. We’ve developed educational materials and hosted events, including discussions with FCC Commissioner Brendon Carr; conversations with leading experts on ensuring market-based solutions, effective impacts, and accountability; and reviews with state leaders on their best practices.

We’ve also constructed a grading system to foster best practices rooted in transparency, effectiveness, and accountability, reflecting a rigorous evaluation based on scholarly research and our scholars’ practical experiences with state and federal initiatives to expand broadband.

Before making these grades public, we offered state leaders opportunities to provide feedback on our preliminary findings. This step ensured that our evaluations are as accurate and comprehensive as possible. Our research is grounded in publicly available information, but we acknowledge the possibility of oversight or misinterpretation, thus our efforts to reach out to states for their reviews. It’s a collaborative approach that underscores the dedication of all involved to strive for impartiality and to create and disburse constructive feedback.

During that feedback period, all information remained confidential within our team. Now, after receiving feedback from all who were willing and able to provide it, we are unveiling our first grade cards for all states. These showcase not only where each state stands individually and in relation to each other, but also highlight promising strategies and areas where progress is needed.

The grades will be updated as each state moves through the process from planning to granting and deployment. The grades aren’t just scores; they’re reflections of the progress states are making in learning how to be effective in guiding their broadband initiatives, clues to each state’s commitment to better broadband for all its citizens, and indicators of structures and processes that need improvement. The work is difficult and, in many instances, both innovative and notable. Our goal is that these grades both inform and inspire action towards more effective broadband expansion. State broadband offices, governors’ offices, state legislators, and others interested in how well their states are making effective and efficient broadband available to their residents should find these grades useful. Together, we can ensure a well-connected future for every citizen.