How to Pay for OpEx in a Post-Subsidy Environment
The BBC Summit conference hosted by Total Telecom was held May 6-8th, at The Woodlands, TX. Sean Dundon, Shannon Boothe, and Roger Pearson attended the event on behalf of VETRO and met with several VETRO customers, investors, prospective buyers and partners to learn about network deployment plans, use of Federal and State subsidy programs, and potential roadblocks.
This year the focus of BBC was around managed Wi-Fi, BEAD timelines and deployment strategies, and digital equity programs and solutions.
Much of the Summit was MDU-focused, however given the largest broadband subsidy program in history is about to be released, BEAD and its impacts around financing broadband CapEx (subsidy) as well as OpEx (no subsidy) as well as digital equity were the major themes. Participants noted the impact of BEAD is diluted by factors such as taxation, cybersecurity requirements, letters of credit, supply chain constraints, environmental requirements, and other various permitting and reporting requirements. These requirements may prevent many small to mid-sized internet service providers from participation in BEAD.
Many providers are struggling to make a return on their BEAD proposals in the absence of the Affordable Connectivity Program (ACP) funding which has sunset. Sessions focused on the following topics:
Subsidy/Funding: With the recent influx of federal funding through programs like USDA ReConnect and BEAD, speakers discussed the application process, navigating potential challenges, and maximizing these opportunities.
Bridging the Digital Divide: Experts on bridging the digital divide in different community settings (rural, urban, tribal lands) shared successful strategies and highlight remaining challenges around the patchwork of subsidy programs.
Technology Expertise: Considering the theme of “paving the road to our fiber future,” speakers discussed how to utilize technology to deploy networks faster and improve the customer experience.
Finally, several attendees from the UK indicated that the US broadband market is ripe for a big increase in mergers and acquisitions based upon their experience and government subsidies on the near horizon. This consolidation activity would allow acquiring entities to scale and become more efficient, thus increasing valuations significantly.
About VETRO
At VETRO, we believe visualizing data unlocks hidden potential, radically simplifying the way businesses operate and digitizing the future of connectivity. We focus on empowering network operators with unparalleled clarity and control over their fiber networks, enabling them to move faster, better, and more efficiently than ever before. Our revolutionary platform isn’t just software – it’s the physical network asset system of record, offering unprecedented visibility and control from strategic planning to daily operations. We empower our customers to bridge the digital divide at a rapid pace, unlock unforeseen opportunities, and squeeze the maximum value from their networks. Let’s illuminate the unseen, digitize the way we connect, and shape the future of connectivity, together.
