The Trump administration points to the latter language in its argument that ISPs alone must choose the price of the low-cost option. The new version of the BEAD FAQ says that states may not require specific rates for the low-cost service option (LCSO), even when required by state law.
The BEAD law “prohibits NTIA or the Assistant Secretary from engaging in rate regulation,” the FAQ said. “Because the Assistant Secretary must approve the LCSO in the Final Proposal, the rate contained may not be the result of rate regulation.”
The NTIA released a BEAD Restructuring Policy Notice (RPN) in June. The RPN eliminated Biden-era “requirements dictating price and other terms for the required low-cost service option,” the FAQ said. “Per the RPN, states may not apply state laws to reimpose LCSO requirements removed by the RPN… Violation would result in rejection of the Final Proposal.”
The RPN said that states are barred “from explicitly or implicitly setting the LCSO rate a subgrantee must offer,” and that the NTIA would only approve plans in which ISPs get to choose the low-cost rate. But while the RPN said that states may seek waivers when state laws conflict with the NTIA’s requirements, the new FAQ appears to rule out any waiver requests for broadband price laws. The update makes it clear that the Trump administration would reject any grant plan that includes enforcement of a state law requiring specific prices.
Cable lobby loves Trump admin update
America’s Communications Association, a lobby group for cable companies, last week urged the NTIA “to expressly condition access to BEAD funds on an Eligible Entity agreeing not to apply or enforce rate regulation in the context of BEAD deployment projects and to make clear that no waivers of this policy are forthcoming.” The group was satisfied by the NTIA’s update, saying today that the new FAQ “hold[s] the line against harmful rate regulations.”