Startups Stand to Benefit From Infrastructure Bill’s Broadband Push
by Sean Davis, Policy Manager, Engine Advocacy & Foundation
Last week, Congress voted to advance the $1 trillion bipartisan infrastructure bill which promises to benefit startups by directing an unprecedented $65 billion for broadband development. This news comes at a time where many businesses are more dependent on Internet access than ever. Yet, there are still approximately 30 million Americans who lack broadband infrastructure that provides minimally acceptable speeds.
For startups, broadband access in today’s climate is more vital than ever. In order to lower the cost of entry into the market, broadband affordability is imperative. The key broadband provision of the infrastructure bill provides $42 billion to expand broadband equity, access, and deployment. This program allows for the National Telecommunications and Information Administration (NTIA) to issue funds as block grants to the states with rules defined by the NTIA. Furthermore, states are permitted to use these funds for digital equity solutions which include deploying affordable networks in low-income, multi-family buildings and promoting broadband adoption.
More specifically, the bill guarantees that $100 million is allocated to each state, while the remaining monies would be dispersed based on the number of unserved and high-cost locations in each state — a method highlighting the program’s purpose: to provide affordable broadband internet to homes and businesses in need. The bill also includes $14.2 billion to extend the Emergency Broadband Benefit Program beyond the pandemic, ensuring that more Americans will be able to afford broadband connectivity, a high-quality device, and gain the needed digital literacy training to participate in the job market.
The last provision focusing on broadband affordability is the Digital Equity Act, which will assign $2.75 billion for digital inclusion and broadband adoption efforts such as digital skills training, devices, and covering the costs of Internet connection for low-income households. This allocation of funds is vital for startups because as technology continues to advance, broadband adoption, and digital skills training will be required for jobs in our future technological system.
In addition to targeting barriers to broadband affordability, the infrastructure bill addresses broadband availability with a promised $1 billion to build out middle-mile infrastructure. Building out middle-mile technology will provide underserved localities with broadband through alternative network connection paths and last-mile connectivity. This will enable the connection of underserved institutions such as libraries and give them the ability to expand their resources and offer internet access and opportunities to entrepreneurs in their communities.
Reliable connectivity has always been an essential component of the U.S. startup ecosystem. Since the pandemic, this reliance has only increased across the country. Engine applauds Congress for their work in crafting broadband provisions that are guaranteed to secure the future for many early-stage companies by ensuring broadband is affordable, building out the necessary infrastructure to increase connectivity, and developing opportunities for jobs of the future.
Engine is a non-profit technology policy, research, and advocacy organization that bridges the gap between policymakers and startups. Engine works with government and a community of thousands of high-technology, growth-oriented startups across the nation to support the development of technology entrepreneurship through economic research, policy analysis, and advocacy on local and national issues.
