Q: What’s the status of United’s fiber buildout project?
A: While some construction efforts are ongoing, United has significantly slowed down its major buildout of the fiber network. This follows a collective decision by the Department of Commerce (DOC) and the Texas Broadband Development Office (BDO) not to award United federal grant funding through the National Telecommunications and Information Administration’s (NTIA) BEAD Program.
Q: What is BEAD?
A: BEAD stands for Broadband, Equity, Access and Deployment and is a $42.5 billion federal grant program administered by the DOC’s NTIA. Under this federal program, the DOC distributes funding to eligible U.S. states and territories, which then administer and facilitate the flow of funding to grant award winners. United was not awarded a BEAD grant.
Q: Who won BEAD funding in United’s territory from which United members can expect high-speed internet service?
A: In United’s service footprint, two internet service providers were awarded BEAD funding for different areas. Those providers are Nextlink (aka AMG) and Starlink. Under the terms of their grant agreements, BEAD recipients Nextlink and Starlink are expected to be required to meet buildout and service requirements (e.g., speed and coverage standards), but timelines vary by state and by project.
Q: So I will still get access to high-speed internet?
A: Yes—federal funding ensures that at least one of those providers will build a high-speed internet service network in your area, even though it will not be us.
Q: Do you know which provider is required to serve my location?
A: The Texas BDO has released a map of BEAD award winners. The map allows users to view project areas by county, state house district and state senate district. The majority of the BEAD Award area within United’s footprint has been awarded to Nextlink, and a smaller piece to Starlink, according to the map. Members in those areas should reach out to those entities to learn when they can expect their service to be available. The BDO map can be accessed at: BEAD Award Map.
Q: Why can’t you just continue building anyway?
A: The cost of rural fiber optic construction is extremely high. Competing with BEAD-grant funded providers would result in unsustainable costs and redundant (or duplicated) infrastructure. Because of these factors, continuing our buildout would not be financially responsible and would duplicate infrastructure that will already be heavily funded through BEAD awards.
Q: If I have United’s service, will my current internet service change?
A: No. Your existing service remains in place. This announcement only affects future construction.
Q: Could you accelerate building in the future?
A: Potentially. We continue to monitor funding opportunities and market conditions. If circumstances change, we may revisit expansion options.
Q: Does this affect the timeframe in which I will receive service from United if I am in an active area?
A: No. This will not affect any areas where United is actively serving members.