Industry leaders say BEAD initiative will impact telecoms
BY OYAOL NGIRAIRIKL Journal Staff
DayGuam officials are hoping that by about April this year, they’ll have approval of their plan for a $156 million initiative that aims to make telecommunications more affordable and accessible to all residents. John Day, president and chief operating officer of Pacific Data Systems, said this initiative could change lives “more than we can imagine.”
The federally funded Broadband Equity, Access, and Deployment initiative aims to make internet connection cheaper, if not free, and ensure it is accessible to all people, particularly those in areas deemed to be underserved. Guam
was defined as such an area, making the island eligible for $156 million of U.S. Department of Commerce, National Telecommunications and Information Administration grant.
“We did submit Volumes I and Volumes 2 and then we have our initial proposal funding request, they were all due Dec. 27, we submitted Dec. 22,” Melissa Bettis, acting special assistant to the Office of Infrastructure Policy and Development; told the Journal. She said public comments as well as feedback from local telecoms were incorporated into their reports submitted to the NTIA. Bettis said a response is expected between March and May of 2024.
Her office met several times with individual companies and with the groups of local telecoms, she said. Their feedback helped shape the submissions. If all is approved and the process moves forward the government will issue a request for proposal for subgrants, and telecoms can submit proposals. Currently, she said, they’re in what’s called the “curing process” with the NTIA asking for clarification or additional detail.
The Office of Infrastructure Policy and Development, created by Gov. Lourdes A. Leon Guerrero by executive order, released Volume 1 of the initiative on Nov. 1. It focused on Guam’s vision, goals, and strategies for broadband deployment and digital equity. The office released Volume 2 of the BEAD initiative on Nov. 9. The deadlines for public comments were Nov. 30, for Volume 1 and Dec. 9 for Volume 2.
Guam officials will include public comments to Volume 2, which they will submit to the NTIA. Volume II contains detailed information on how the “Eligible Entity” plans to use the funds, select subgrantees, ensure compliance, and achieve the program’s objectives.
“If this money is used well, it will have a very significant impact on how we use and fund telecommunications,” Day told the Journal.
Telecom companies that failed to adapt with the evolving technology “are all gone,” Day said. “We think a very similar thing is going to happen,” he said of the impact of changing technology.
During a public hearing at the Guam Legislature in early November 2023, Day pointed to cable TV, which has seen slumping sales as more people switch to streaming apps that are accessed via internet connection.
Day has lived in Guam for many years. He recalled how “we suffered under the tyranny of distance. I remember when we used to get TV shows a week behind. Everything was sent from southern California,” he said. “But we don’t live in that kind of world anymore.” He said submarine cables connecting Guam to the U.S. and the rest of the world has changed that.
Sen. Tina Muna Barnes, vice speaker of the 37th Guam Legislature; asked telecom representatives on Nov. 1 what they thought was the best use of funds.
Day was the first to answer. “Putting fiber out into the network all the way to the end point, which means to the house, not to the curb or to the neighborhood but to that house - that is the ultimate solution, because once you have fiber into that location the amount of information you can put in there, it’s almost unlimited.”
“This program, if it’s implemented the way that it could be or should be, would meet that promise and would put that connection to every home or every apartment building or every business on the island. … It’s going to change the dynamic,” Day responded to the vice speaker.
“My company, for example, has very little fiber deployed, we endorse this because it will give us access to fiber to all these locations around the island,” he said. “Other companies have quite a bit of fiber deployed. They don’t want other fiber going out there that’s controlled by the government or sponsored by the government that comes with a bunch of rules and regulations.”
Day said a balance will be needed. “The good news is, $150 million is enough to do everything we want to do,” he said.
Other industry executives also spoke at the hearing.
Roderick Boss, president and COE of Docomo, said underground fiber network is the future and “the solution all the way around.”
Roland Certeza, president and CEO of GTA Teleguam, said the project can be very successful and product but the government needs to trust the operators.
James I. Oehlerking, then CEO of IT&E; agreed with Boss and Certeza’s points, adding that telecom operators in Guam are knowledgeable and capable of doing the work to meet the goal, particularly after having met with officials.
“I’ve seen across the board all the operators’ investments and improvements in network improvements,” he said at the hearing. “All of us are making significant investments in tens of millions of dollars on our own every year that we need to do in conjunction with (the initiative) so it’s all additive and moving in a common direction.”
(From left) Carlo Carino, administrator, Broadband, Equity, Access and Deployment, and Melissa F. Bettis, acting special assistant for the Office of Infrastructure, Policy, and Development, were at the Guam Legislature Building on Nov. 1, 2023.
PDS is a local telecommunications service provider, delivering voice, internet, and data services. PDS also designs and builds telecommunications infrastructure, using both wireless and wireline technology.
Representatives of GTA TeleGuam, IT&E, and Docomo also said at the November hearing that local companies are eager to work with the government of Guam to improve telecommunications.
“Our opinion is this is a once in a lifetime funding that has the potential to completely change the way people communicate,” Day told the Journal.
A common thread among industry leaders is that the BEAD initiative could create significant “opportunities to reduce cost ... of not only broadband in your home but also broadband in a mobile environment,” Day added.
Much of that, he said, would come from installing underground fiber cables, which allows for much more data at faster speeds. Placing fiber cables underground helps protect the system from storms. Typhoon Mawar showed Guam’s telecom systems were vulnerable.
“Remember that today, for the most part, our houses and businesses are connected by cables. That technology is about 100 years old,” he said, referencing early online services of 2.4 kilobits and that TVs sold today are mostly 4K ultra high definition.
“And those need maybe 20-30 megs per second and in a household, you have three or four streams going on simultaneously … the amount of capacity that is in our homes today certainly is close to 100 megabits when everyone is home and using the services,” Day said.
“These are for applications that we have today. Augmented and virtual reality is coming and these are the programs coming in the future and so we need fiber optic technology to stay current… otherwise we’ll fall behind.”
Day said fiber optic technology will be needed to stay current with programs such as augmented and virtual reality. “I can see a time when basic internet services will be very close to free,” Day said.
“Government programs already enable to have some programs, just like phone services, to make that free as well. Because these are vital comms services, essential for people to work and kids need them for educational purposes,” he said.
Day said PDS, like other companies, has met with local and federal officials on BEAD and the company will continue to provide feedback through December.
The current proposal includes:
Pricing structure: The pricing is set at $60 per month for those who qualify under the Affordable Connectivity Program criteria. With ACP benefit, the total monthly cost to the customer would be $30. If the ACP is discontinued, the price adjusts to $50, remaining within a range that could be considered low-cost under BEAD's guidelines.
Eligibility verification: Adhering to the ACP eligibility criteria, a benefit aware agency can handle local verification, which is a critical component of the BEAD low-cost option requirement.
Broadband service standards: Offers speeds matching the BEAD program’s minimum service standards of 100/20 Mbps, thereby ensuring the service is not only affordable but also robust enough for modern applications.
Adaptability and flexibility: The program includes stipulations for service continuity and upgrades, which are elements that can be critical in meeting BEAD guidelines that focus on the long-term sustainability and adaptability of low-cost options.
Consumer Protections: Ensures that eligible subscribers are protected from unexpected price hikes, which is in line with BEAD’s intention to establish reliable and predictable low-cost options for consumers.
Local Engagement: The local verification and management of the program empower the community, a factor that the BEAD program encourages in order to ensure the low-cost option is effectively meeting the needs of the targeted population.
Proactive Outreach: Commitment to community education and outreach aligns with BEAD’s emphasis on increasing the adoption of broadband services by ensuring that communities are aware of and understand how to access affordable services.
Post-ACP scenario planning: Preparation for a potential discontinuation of ACP demonstrates foresight in planning, a characteristic BEAD would support to maintain continuous service without federal subsidy support. mbj
