NASBP Focal Point – July 29, 2024

Federal Report

Comment Letter to FCC: On July 25, NASBP and The Surety & Fidelity Association of America (SFAA) submitted a comment letter to the Federal Communications Commission (FCC) requesting it consider using bonds as an alternative form of security to letters of credit (LOC). The joint comment letter asks the Commission to align with the current policy of the National Telecommunications & Information Administration’s (NTIA),which it adopted in November 2023 for the Broadband Equity, Access, and Deployment (BEAD) Program.

State Activity

BEAD Bond Kit: As announced in a recent press release the surety industry released a Surety Bond Information Kit specifically for the BEAD Program. Last week, NASBP and SFAA contacted all 50 state broadband offices to share the Kit to address the NTIA’s acceptance of surety bonds as an alternative form of security to LOCs for the BEAD Program. The Kit, which is available in Word fillable documents, includes two performance bond forms, model language for state broadband offices to insert into award agreements, and a sample letter template to confirm for state broadband offices the bond amount for which an internet service provider (ISP) or its construction contractor initially qualifies.

Of the two bond forms, one addresses situations when the ISP can qualify for bonding and furnishes the bond directly to the state broadband office. The second bond form addresses situations where the contractor to the ISP building out the broadband system is better suited to qualify for bonding. Accepting surety bonds in the BEAD Program promises significant benefits for small ISPs, state broadband offices, and taxpayers, making it a promising initiative. Broadband and the BEAD Program will be a panel discussion at the NASBP Fall Meetings.

If you are aware of any bills impacting the industry, please reach out to Larry LeClair, NASBP’s Director of Government Relations, and let us know.