Unpacking Approved BEAD Volume 2s: Virginia

NTIA recently approved Virginia’s Initial Proposal Volume 2. The ACLP compared the final version with the second cured version that the state released a few months ago. A redlined comparison is available here. The following major changes were evident:

Subgrantee Selection Process

Letter of Credit

The state will use the NTIA’s Letter of Credit waiver, and all other proposed processes related to the LOC. Previously the state had proposed a slightly different approach to the LOC; now it will use the NTIA approach.

State Use of BEAD Funds without Making a Grant

The state will earmark $10M in BEAD funds to support workforce development efforts.

Low-Cost Option

The biggest change in the final version is the state’s embrace of NTIA’s preferred approach to the low-cost option. Previously, the state had made clear that it thought adopting a specific price-point for the option constituted rate regulation. However, in the final version the state will require subgrantees to make available a low-cost option at a price between $30/month and $75/month.

The state also increased the length of this commitment, from 8 years to 10 years. Price increases of no more than 4% are permissible.

This leaves South Carolina as among the only remaining holdouts vis-à-vis setting a price for the low-cost option. SC did not budge on its reluctance to do so in its most recent cured V2, which it released on July 18.