Broadband Office Name: North Carolina Department of Information Technology (NCDIT)
BEAD Award Amount: $1.53 B
North Carolina Broadband Director: Angie Bailey
Website: https://www.ncbroadband.gov/
North Carolina BEAD Program Tracker
| State | IP Vol 1 Approval | IP Vol 2 Approval | Challenge Process Submission Closed | Submitted Challenge Results to NTIA | Challenge Process Results Approved by NTIA | 1-Year Subgrantee Selection Process |
|---|---|---|---|---|---|---|
| North Carolina | Yes | No | N/A | N/A | N/A | N/A |
North Carolina BEAD Program Information
Key Updates
North Carolina has its Initial Proposal Volume 1 approved and is currently awaiting NTIA approval for Initial Proposal Volume 2.
The state has not yet started its BEAD Challenge Process.
North Carolina BEAD Program Plans & Maps
North Carolina BEAD Program Initial Proposal Volume 2: Overview
*Information is subject to change. North Carolina is awaiting official approval of Initial Proposal Volume 2 from the NTIA.
BEAD Long-Term Objectives
The N.C. Department of Information Technology (NCDIT) and Governor Cooper plan to use $1.5 billion in BEAD funding and $1 billion in ARPA funding to achieve the following goals:
- Infrastructure Investment:
- Invest $971 million to build critical infrastructure delivering internet speeds of 100/20 Mbps to 98% of unserved households, with the capability to handle future speeds of 100/100 Mbps.
- Targeting Unserved and Underserved Areas:
- Use BEAD funding to provide internet speeds of 100/20 Mbps to the remaining unserved households and 100% of underserved households, including locations in high-cost areas and community anchor institutions.
- Allocate remaining funds to affordability programs.
- Digital Literacy and Skills Training:
- Invest $50 million to create awareness and support digital literacy and skills training, enabling the state’s workforce to participate in the digital economy.
- ACP Enrollment Promotion:
- Promote enrollment in the Affordable Connectivity Program (ACP) to increase participants to 1 million North Carolina households by the end of 2023, up from 862,597 households as of November 6, 2023.
- High-Speed Internet Adoption:
- Deploy $1.415 million of Digital Equity Act funding, along with other funds, to increase high-speed internet adoption with specific targets:
- Increase the percentage of North Carolina households with high-speed internet subscriptions from 73% to 80%.
- Raise the percentage of households with children that have high-speed internet subscriptions from 81% to 100%.
- Increase adoption rates to 80% across racial subgroups:
- Native American: currently 57%
- Black: currently 64%
- Latinx: currently 68%
- White: currently 76%
- Deploy $1.415 million of Digital Equity Act funding, along with other funds, to increase high-speed internet adoption with specific targets:
North Carolina BEAD Program Project Area Design
NCDIT is currently evaluating several methods to design project areas for the BEAD program. The division is considering the benefits of using different geographic boundaries, including:
- H3 (Hexagonal Hierarchical Spatial Index)
- Census Blocks (CBs)
- County Boundaries
Each of these methods offers distinct advantages for organizing and managing broadband deployment projects. The final decision will be based on an assessment of which approach best meets the state’s goals for efficient and effective broadband expansion.
North Carolina BEAD Program Extremely High Cost Threshold
North Carolina has three other state-funded broadband programs in addition to the BEAD program. Locations not covered by these programs or the BEAD program will be considered high-cost. The process for addressing these high-cost locations includes the following steps:
- Identification and Analysis:
- Identify the remaining locations left out of the three state-funded programs and the BEAD program.
- Analyze these locations to determine the cost to serve them, taking into account the surrounding infrastructure.
- Determination of High-Cost Areas:
- Evaluate the cost implications of serving these high-cost areas.
- Determine which locations will be considered for “Other Last Mile Broadband Projects.”
BEAD Deployment Subgrantee Selection
NCDIT is asking for the following preregistration evidence from subgrantees and compliance with: Financial capability, managerial capability, operational capability, technical capability, ownership info, public funding info, compliance with laws, cybersecurity/supply chain compliance, and BABA/EHP/NEPA/NHPA compliance.
Primary Scoring Criteria for Priority Broadband Projects
- 65% – Minimal BEAD Outlay
- 15% – Affordability
- 10% – Fair Labor Practices
Secondary Scoring Criteria
- 5% – Speed to Deployment
- 3% – Equitable Workforce Development and Job Quality
- 2% – Local and Tribal Coordination
BEAD Non-Deployment Subgrantee Selection
NCDIT plans to channel non-deployment funds through the existing Digital Equity Grant program, which includes:
- Interagency Grants: Targeted at North Carolina government agencies.
- Digital Champion Grants: Aimed at other non-state agencies.
North Carolina has identified 374,412 unserved and 127,956 underserved locations. Non-deployment activities will only be pursued if funds remain after addressing these locations.
Priority Areas for Non-Deployment Projects:
- Internet Affordability: Ensuring broadband services are affordable for all residents.
- Device Ownership: Increasing access to necessary devices for connectivity.
- Digital Skills Training: Providing training to enhance digital literacy and skills.
- Online Accessibility and Inclusivity: Making online content accessible and inclusive for all users.
BEAD Eligible Entity Implementation
NCDIT proposes to implement the following initiatives directly, without issuing a subgrant:
- Challenge Process Development/Implementation:
- Develop and implement a process for addressing challenges related to broadband deployment.
- Subgrantee Selection Process Development:
- Create and manage the process for selecting subgrantees for broadband funding.
- Broadband Mapping:
- Conduct detailed mapping of broadband coverage across the state to identify gaps and target areas for improvement.
- ACP Outreach:
- Promote the Affordable Connectivity Program (ACP) to increase awareness and participation.
- Technical Assistance Program:
- Provide ongoing technical assistance to support broadband initiatives and stakeholders.
- Broadband Survey and Speed Test:
- Conduct surveys and speed tests to assess broadband performance and identify areas needing improvement.
- Digital Equity Survey:
- Perform surveys to understand digital equity issues and gather data to inform planning.
- Public Wi-Fi Mapping:
- Map public Wi-Fi locations to improve access and identify areas lacking connectivity.
- Community Engagement:
- Engage with communities to gather input and support for broadband initiatives.
- Workforce Development and Readiness:
- Develop programs to enhance workforce skills and readiness for broadband-related jobs.
- Climate Assessment:
- Assess the impact of climate factors on broadband infrastructure and plan for resilience.
BEAD Local, Tribe, and Regional Broadband Planning Process
Tribal Consultations:
- Held consultations with the Eastern Band of Cherokee Indians.
- Conducted a virtual session with the Catawba Nation of South Carolina, which owns some land in North Carolina.
- Presented planning information to the Commission of Indian Affairs to collaborate with the eight state-recognized tribes and four urban Indian organizations.
Government Agency Interviews:
- In April and May 2023, the division conducted interviews with six different government agencies to discuss BEAD and Digital Equity plans.
- The state equity plan will include a comprehensive list of all organizations working to create a digitally equitable state.
Local Coordination and Advisory Efforts:
- Hosted a local coordination summit in May 2023, with hundreds of participants joining online and in person.
- Established the Broadband Workforce Advisory Committee in spring 2023.
- Held committee meetings, listening sessions, and interviews with stakeholders and residents.
- Starting in March 2023, the division holds quarterly sessions for underrepresented groups.
Engagement with Covered Populations:
- Hosted 23 listening sessions specifically for covered populations.
- Conducted nine regional sessions, one in each economic prosperity zone, and one virtual session.
- Covered 48 counties, receiving 6,500 responses from residents.
These comprehensive efforts demonstrate North Carolina’s commitment to inclusive and equitable broadband planning and implementation, ensuring that all communities, especially underrepresented and tribal populations, are engaged in the process.
BEAD Labor Standards & Protection
NCDIT requires all BEAD subgrantees to submit the following information:
A record of past compliance with federal/employment laws:
- Must address info on deployment projects within the last 3 years.
- Certification form from an Officer/Director level employee of past compliance.
- Written confirmation that subgrantee has disclosed any violations from contractors within the last 3 years.
- Discussion of workforce plan
Plans for ensuring compliance with federal/employment laws:
- How subgrantee will ensure compliance in its labor/employment practices.
- Info on applicable wage scales, wage, and overtime practices for each class of employee expected to be involved in physical construction of the network.
- How subgrantee will ensure implementation of workplace safety committees.
- Comply with the Prevailing Wages Act.
- Other items as outlined in the BEAD NOFO.
BEAD Minority Business Enterprises / Women’s Business Enterprises / Labor Surplus Area Firms Inclusion
Utilization of Existing Partnerships and Initiatives: NCDIT will leverage existing partnerships and initiatives to implement effective data tracking methods, ensuring robust participation from Minority and Women-Owned Business Enterprises (MWBEs). Key partnerships include:
- NC Historically Underutilized Business (HUB) Office:
- Focus on HUB recruitment and certification, prequalification and selection, monitoring and tracking, North Carolina Disparity Studies, and outreach.
Partner Organizations:
- NC Minority Business Development Agency Business Center (NCMBDA)
- Carolinas-Virginia Minority Supplier Diversity Council (CVMSDC)
- The National Institute of Minority Economic Development
- The Center for Entrepreneurship
- The Women’s Business Centers
- NC MWBE Coordinators Network
- United Minority Contractors of North Carolina (UMCNC)
- The Hispanic Contractors Association of the Carolinas (HCAC)
- The Greater Women’s Business Council (GWBC)
NCDIT Activities to Support MWBE Inclusion:
- Solicitation Lists:
- Place qualified small MWBEs on solicitation lists.
- Targeted Solicitation:
- Ensure MWBEs are solicited whenever they are potential sources.
- Dividing Requirements:
- Divide total requirements into smaller tasks, when feasible, to permit maximum participation by MWBEs.
- Delivery Schedules:
- Establish delivery schedules that encourage MWBE participation.
- Support Services:
- Utilize the services and assistance of organizations such as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce.
- Subgrantee Requirements:
- Require subgrantees to take affirmative steps to include MWBEs in their projects.
BEAD Cost & Barrier Reduction
1. Promoting the use of existing infrastructure.
2. Promoting and adapting dig-once policies.
3. Streamlining permitting processes.
4. Streamlining cost-effective access to poles, conduits, and easements.
5. Streamlining rights of way, including the imposition of reasonable access requirements.
BEAD Low-Cost Broadband Service Option
North Carolina intends to adopt the low-cost option as outlined in the BEAD Notice of Funding Opportunity (NOFO). Applicants must certify that their plans meet the following criteria:
- Affordable Connectivity Program (ACP) Compatibility:
- Allow end users to apply for the ACP.
- Providers must participate in the ACP.
- Speed Requirements:
- Provide internet speeds of at least 100/20 Mbps.
- Latency:
- Ensure latency measurements do not exceed 100 milliseconds.
- No Extra Charges:
- The service must not be subject to data caps, surcharges, or usage-based throttling.
- Free Upgrades:
- Offer eligible subscribers a free upgrade if the provider later offers a plan with better service.
BEAD Middle-Class Affordability
The median household in North Carolina with an income exceeding $60,500 per annum spends around $95 per month on broadband. To address this, NCDIT plans to implement a multi-pronged approach:
- Progress Reporting and Pricing Disclosure:
- BEAD subgrantees will be required to provide regular progress reports on their implementation.
- Subgrantees must comply with disclosure of their pricing structures to ensure transparency.
- Scoring Rubric for Affordable Pricing:
- The division’s scoring rubric will reward applicants who offer affordable broadband pricing, in addition to the mandated low-cost option.
- Extending Low-Cost Options:
- To support middle-class households that do not qualify for the low-cost option but still face income constraints, the division will explore the feasibility of rewarding applicants who offer the low-cost option to all subscribers, thus removing the means test.