Colorado Broadband Office officials said Tuesday that the federal government approved the state’s reworked $420.6 million Broadband Equity, Access and Deployment Program plan, about half the original amount awarded two years ago to get fast internet to every unserved or underserved household. An estimated 96,000 Coloradans are expected to benefit.
The state’s final proposal, submitted to the National Telecommunications and Information Administration in September, had to be redone after the rules changed under the Trump administration in June. States could no longer prioritize fiber internet over wireless or satellite technology. They also had to pick the lowest-priced service if it met minimum speeds.
“This is a monumental win for rural Coloradans who have lacked access to high-speed internet,” said CBO Executive Director Brandy Reitter, in a news release. “This highly anticipated $420.6 million in BEAD funding will be strategically deployed to connect our most remote communities, directly addressing the digital divide.”
The BEAD program originated from the federal infrastructure bill passed in 2021. It aimed to address the mayhem caused by the COVID pandemic that limited in-person work, school and health care. Students with inadequate bandwidth at home struggled to log in for classroom video conferencing. Congress approved the $42.5 billion program to provide all Americans with adequate internet for remote living, especially in rural areas.
The program would let states distribute the federal funds to internet companies, which would build and improve internet access with speeds of at least 100 mbps down and 20 mbps up.
Colorado was originally awarded $826.5 million in 2023 and received federal approval a year later on how it would spend the money.
But that changed in June under the new U.S. Secretary of Commerce, Howard Lutnick, who testified before a congressional panel calling some state’s BEAD proposals too costly, mentioning one that cost $100,000 to run fiber to a single house appraised at $100,000.
Fiber was deprioritized, which opened up Colorado’s proposal to satellite services from Amazon and Starlink. Amazon’s Project Kuiper wound up being named the provider for 44% of the eligible households with limited or no internet service.
But switching to cheaper options also meant Colorado only claimed about 50% of the original award. The broadband office said fewer locations were deemed underserved since they had wireless options available.
In the data shared earlier by the broadband office, Amazon’s proposed cost to add capacity in its satellites for underserved Coloradans is $600 per location. Starlink’s is $1,700.
Fiber installations will get up to $13,000 per location in BEAD subsidies, with tribal locations averaging $13,355 per location.
A few more state and federal reviews must take place before the money is handed over to Colorado. But that process should take no more than two months, said Lauren Francis, a spokesperson for the broadband office. After that, agreements with 25 internet companies will be finalized. Construction must be completed within four years.