Wisconsin PSC BEAD Update 12/10/2024
December Broadband Update
The PSC published the Preliminary Project Units map back in October https://maps.psc.wi.gov/apps/BEADProjectUnitsMap
A BEAD “project unit” is a group of BSL’s (Broadband Serviceable Locations)
On Dec 9th 2024, the Wisconsin Public Service Commission (PSC) Wisconsin Broadband Office (WBO) announced the likely final timeline for BEAD Round 1. https://apps.psc.wi.gov/ERF/ERFview/viewdoc.aspx?docid=526052
** note the document linked above does not identify timelines for Round 2 and Round 3
General BEAD Timeline is noted below (source): https://psc.wi.gov/Pages/ServiceType/Broadband/BEADProcess.aspx
Timeline
12/17/2024 Internet for All: Wisconsin BEAD Update (GoToWebinar) review update on BEAD projects https://register.gotowebinar.com/REGISTER/4164710795885829213
1/6/2025 - All materials available to approved applicants
1/7/2025 - Optional In-person training for approved applicants (limit 2 participants per applicant) Training location Wausau, WI
1/8/2025 – 1/10/2025 Optional Mock BEAD Grant Round 1 for practice
7/31/2025 DEADLINE FOR PSC TO SUBMIT SELECTED SUBGRANTEES (participating ISPs) to NTIA for final award. There is no email from
Round 1
1/13/2025 BEAD Grant Round 1 Opens
2/23/2025 my recommended deadline for
County Government Endorsement Letters and/or Resolutions
Town/Village/City Endorsement Letters and/or Resolutions
Only 1 Project Unit per ISP per Endorsement
2/25/2025 at 11:59 p.m. CT BEAD Grant Round 1 Applications Due
Wisconsin Counties, Tribal & Local Government Endorsements
*from UW-Extension* If your county or Tribal leadership has not completed any endorsements for BEAD, NOW is the time! The Wisconsin Broadband Office has announced that the BEAD Round I application period will open January 13 with applications due February 25.
It is critical that County and Tribal leadership communicate with the local ISP(s) to find out when they will need endorsement documentation for their application.
Endorsements need to be submitted directly to an ISP, who will include it in their application package. As noted above the deadline for round 1 is 2/25/2025, so I am recommending that all endorsement resolutions and/or endorsement letters are completed by 2/23/2025.
BEAD Cost Overview
ISP Concerns
There is a question about available funds per project unit (which works out to available funds per BSL). This will continue to be a challenge for participating ISPs
Passing Cost (BSL Cost)
The total cost for a passing will vary widely because it might be just 2 houses in a mile so the cost could be $50k for those two individual homes, or even one BSL per mile at about $100k. All this varies with the cost per mile, which can vary widely. An area with a lot of bedrock could be $300k or even $400k per mile. An area with deep topsoil could be $65k per mile or even less.
Project Unit Cost
A project unit is a group of qualifying or “BEAD eligible BSLs”. Some addresses might not be eligible because the feds declared they were “served”, or had funding through other sources such as eACAM or other state or federal grants.
The cost per project unit is a combination of all of the individual passings or BSLs.
If there were 50 passings (BSLs) in BEAD project unit it could vary from $175k to well over $10mil in a bad area.
Calculation
There are 206,715 BED eligible addresses (BSLs) for wisconsin. If we assume about $990mil remaining (which is a guess) that leaves about $4789 in MATCH funds available per address.
That means the average passing cost would be at maximum $6385. If you assume the provider and/or local gov will come up with the 25% match of $1596.
$1596 ISP 25% Match
$4789 PSC (BEAD) 75% Match
———————————————
$6385 Maximum average BEAD BSL or “passing” cost
The challenge is that this math doesn’t do much for the internet provider. Some areas are going to cost less, some will cost more. Door County will be more expensive than Kewaunee County because of depth of topsoil. So the averages above dont tell the ISP anything.
NOTE: A provider could give MORE than the $1596 (25%) but the PSC (via BEAD) will likely not be able to match much above that number. Assuming an investment of $2500 (34%) from the ISP plus $4789 (65%) BEAD grant, that still leaves a max cost of $7289 per passing, and knowing the rocky and very rural areas will likely exceed $10k we will be exceeding available funds.
What is even more complicating is that the ISP has to do nearly all the work and is then reimbursed so they have to get a loan for the amount of the project - or at least a portion of the project so they can then be REIMBURSED. That means their cost is actually going to be higher than the build cost, because of the cost of capital.
Funding Challenges
In the example above the service provider gives $2000 and BEAD gives $6000 that is $8000. If the provider cant make money past $2000 the maximum passing cost they could build is $8000. Remember some passings could be $50k or even $100k. If the average in a project unit is above the $8000 mark they could not afford to bid if the max they can cover is $2000.
Another Example: The location costs $12k but the max the provider can make is $2000 so the max the grant will be is $6000 for a total of match+grant = $8k which leaves a $4k funding gap. Given these addresses
Note many providers have around a $2500 passing max (with the exception of cooperatives that have a longer payback - they are probably double or even triple that number).
Even if providers go up to $3000 in match, the problem is the cost per location in some rural areas is $10k, $15k or even $20k. The PSC or ISPs wont know actual available funds till Round 2 or Round 3. The PSC will need to cut off costs at the $980m or whatever the remaining funds in the $1.01B NTIA amount is. Those remaining “high cost” locations will need “alternative technologies” for service.
This still creates some major challenges, because just a few really expensive addresses can cause an entire project unit average to create the funding gap.
We are making progress but there are still a lot to do.