SPEED for BEAD Act

The SPEED for BEAD Act, HR1870, amends the Infrastructure Investment and Jobs Act to improve the Broadband Equity, Access, and Deployment (BEAD) Program. This bill is significant because it expands the definition of eligible broadband technologies to include satellite, fixed wireless, and fiber, rather than prioritizing fiber. It also prohibits states from regulating broadband rates in connection with the program, removing a significant barrier for providers. This directly impacts the telecommunications sector by making a wider range of technologies eligible for federal subsidies, thereby increasing the potential for deployment and market expansion for companies operating in these segments. The bill also renames the program to "Broadband Expansion, Access, and Deployment," signaling a shift in focus towards broader deployment rather than just equity. The money trail for the BEAD program involves significant federal funding administered by the National Telecommunications and Information Administration (NTIA). The original BEAD program allocated $42.45 billion. This bill does not add new funds but redefines how existing and future funds can be utilized, making them accessible to a broader range of technology providers. Companies like Comcast ($CMCSA), AT&T ($T), Verizon ($VZ), and T-Mobile ($TMUS) stand to gain from the expanded eligibility for fixed wireless and fiber deployments. Satellite providers such as Viasat ($VSAT) and Iridium Communications ($IRDM) will see increased opportunities as satellite broadband becomes explicitly eligible. Infrastructure companies like Crown Castle International ($CCI), American Tower Corporation ($AMT), and SBA Communications ($SBAC) will benefit from increased demand for tower and fiber infrastructure to support expanded fixed wireless and fiber deployments. Historically, government initiatives to expand broadband access have driven significant investment and growth in the telecommunications and infrastructure sectors. For example, the American Recovery and Reinvestment Act of 2009 included $7.2 billion for broadband infrastructure, leading to increased network build-outs. While specific stock performance data from that period is complex due to the broader economic climate, companies involved in broadband deployment generally saw increased contract opportunities. More recently, the initial passage of the Infrastructure Investment and Jobs Act in November 2021, which established the BEAD program, saw telecommunications infrastructure companies like Crown Castle ($CCI) and American Tower ($AMT) experience positive sentiment, with their stocks generally outperforming the broader market in the subsequent months as investors anticipated increased spending. This bill's expansion of eligible technologies mirrors the intent of previous legislation to accelerate broadband deployment. Specific winners include satellite internet providers like Viasat ($VSAT) and Iridium Communications ($IRDM), as their technology is now explicitly eligible for BEAD funding. Fixed wireless providers, including major carriers like T-Mobile ($TMUS) and Verizon ($VZ), will also benefit from expanded eligibility. Traditional fiber providers like AT&T ($T) and Comcast ($CMCSA) will continue to compete for funds, but the playing field is now broader. Infrastructure companies like Crown Castle International ($CCI), American Tower Corporation ($AMT), and SBA Communications ($SBAC) will see increased demand for their assets as more diverse technologies are deployed. There are no clear losers, but companies solely focused on fiber may face increased competition for BEAD funds from other technology providers. The bill has been referred to the House Committee on Energy and Commerce. The next step is committee consideration and potential markup. If it passes committee, it will proceed to a House vote. Given the bipartisan support (22 cosponsors) and the sponsor, Rep. Hudson, being a Republican, the bill has a reasonable chance of advancing. The timeline for passage is uncertain but could occur within the current congressional session, potentially by late 2025 or early 2026. The impact will materialize as states adjust their BEAD plans to incorporate the expanded technology options and as funding allocations are finalized under the new rules.