Puerto Rico must revise broadband plan to comply with new BEAD rules
Puerto Rico, which was allocated more than $334 million through the Biden Administration’s Broadband Equity, Access and Deployment (BEAD) program, must now significantly revise its broadband expansion strategy to comply with new guidance from the U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA).
The new rules reduce federal mandates, expand technological flexibility and prioritize cost-efficiency — factors that could reshape how broadband expansion unfolds on the island.
Puerto Rico now has until early September to revise its subgrant award process and implement a new “Benefit-of-the-Bargain” competition model. This model eliminates the earlier framework’s preference for fiber-first projects and eases requirements related to climate, labor and workforce planning.
Puerto Rico had planned to use a portion of its federal allocation to support deployment and non-deployment activities, including the construction of an island-wide conduit network, affordable device distribution and a workforce development strategy. However, the NTIA’s updated guidance removes the eligibility of these initiatives, requiring the Puerto Rico Broadband Program to resubmit a revised proposal.
The updated guidance, released June 6, introduces a new short-form application process for subgrantees and calls for publication of a revised Volume Two of the initial proposal by July 1. The Puerto Rico Broadband Program must now develop a new competitive selection process for broadband providers that complies with the revised rules.
News is my Business requested comment from several broadband providers, but only Liberty Puerto Rico responded in time for publication.
“Puerto Rico received $334.6 million from the BEAD program to fund various non-deployment initiatives such as the construction of an island-wide conduit, an affordable device program and a workforce development program,” said Wanda Pérez, senior manager of government and regulatory affairs at Liberty Communications.
“The new policy rescinds approval of all non-deployment activities that were authorized in initial proposals. In the new policy notice, the NTIA adds that funding for allowable non-deployment purposes is currently under review, and the agency will issue updated guidance at a later point,” she said.
“We will continue to review the BEAD program’s new policy notice to understand all the changes and see how we need to move forward,” Pérez added. “We look forward to working with local and federal governments to clarify this latest information and provide them with any documentation they may need so we can continue providing connectivity in Puerto Rico and the U.S. Virgin Islands.”
