BEAD Program Delays Impact Equipment Suppliers - A 2026 Event
September 17, 2024
As broadband expansion efforts across the U.S. ramp up, the Broadband Equity, Access, and Deployment (BEAD) program remains a hot topic. Recent analysis, however, suggests that expectations for equipment vendors may need to be adjusted. A new report highlights that the anticipated infrastructure investments tied to BEAD funds are delayed, pushing significant progress into 2026.
A Look at the Delays
According to the report, the initial hopes for BEAD-related spending to impact key vendors as early as 2024 or 2025 are unlikely to materialize. While some limited shipments, orders, and Letter of Intent (LOI) orders may come in by 2025, most significant equipment purchases and deployments won’t occur until 2026. This extended timeline is due in part to the complex approval processes and the four-year window to complete the work. Louisiana, being a benchmark state, is expected to be through the approvals by the end of Q1 in 2025, which may allow for some early activity, but widespread infrastructure deployment will remain a 2026 event for most vendors. This runs contrary to earlier expectations by many of these vendors, who pointed to 2024 or early 2025 as key business timelines.
Louisiana Leads the Way, but With Setbacks
Louisiana, the first state to move through the BEAD process, serves as a benchmark. Despite being ahead of other states in terms of approvals and submissions, Louisiana is still experiencing considerable delays in mapping approvals and carrier selection. Even in this best-case scenario, the earliest significant broadband infrastructure spending is expected toward the latter half of 2025, with most activity projected for 2026.
Challenges in the Award Process
The complexity of the BEAD process is another contributing factor to the delays. State broadband offices face significant challenges in awarding contracts, especially for less economically attractive areas. Some states may be forced to offer full subsidies or consider alternative technologies to fiber for underserved regions, further complicating the rollout.
Vendor Exposure
The delays have had a significant impact on key vendors, all of which have substantial exposure to U.S. service providers. Not only are these companies not seeing the heightened revenues they anticipated from BEAD-related spending, but they are also experiencing a decline in their regular business. Many anticipated awardees are in a holding pattern, waiting for decisions to be made, which has led to a decrease in the usual orders. Vendors are actively pressing this message to the National Telecommunications and Information Administration (NTIA), emphasizing the negative impact caused by these prolonged holds. These vendors have been planning for BEAD as a significant revenue driver, but the reality is that they are likely to see the benefits only starting in 2026.
A Long Road Ahead
While BEAD remains a promising opportunity for bridging the digital divide, the path forward is fraught with bureaucratic hurdles, funding shortages, and delays. For vendors and service providers alike, it’s a waiting game—with 2026 as the new target for significant broadband infrastructure investments.
Stay tuned as KGPCo continues to monitor the BEAD program and its developments to ensure we are well-prepared to support our partners when the infrastructure projects move forward in full force.
For more insights on the BEAD program and how it impacts broadband deployment, feel free to reach out to KGPCo’s experts.
KGPCo USA
Email: [email protected]
Phone: 507-334-2268
Toll-free: 800-328-5142
Sources Jeffries LLC. (July 2024). Telecom & Networking Equipment Report. Analysis on BEAD Program Delays.
