- BEAD opens doors for wireless providers but they still need to deal with Buy America regs
- Fixed wireless access (FWA) vendors produce equipment all over the place
- Satellite providers Starlink and Amazon's Project Kuiper may not be as impacted
The revamped Broadband Equity, Access and Deployment (BEAD) program opens the door for more wireless players to snag a piece of the funding pie. But certain broadband vendors could face roadblocks in meeting BEAD's domestic manufacturing requirements.
The Build America, Buy America (BABA) Act, which mandates certain broadband network components, construction materials and other related equipment must be made in the U.S., could “be an issue for WISPs,” said CCG Consulting President Doug Dawson. WISPS are wireless internet service providers which commonly use fixed wireless access (FWA) technology.
“Tarana might have a big edge since it manufactures radios in the U.S., while most other manufacturers make their radios in Asia,” he wrote in a blog.
FWA's global manufacturing footprint
The manufacturing landscape for FWA is all over the place. Tarana and Cambium Networks – both of which received BABA exemptions – produce some equipment in Mexico and Thailand, respectively. Cambium has also worked with a Taiwanese manufacturer to make fiber components.
Nokia, despite producing fiber optical line terminals (ONTs) and optical networking terminals (ONTs) in the U.S., actually makes much of its FWA equipment in India. The Finnish company last year opened a new Indian factory where it expects to make nearly 10 million devices annually.
As for Ericsson, it has a “5G Smart Factory” in Texas where it makes BABA-compliant products, but it also manufactures products in countries like Brazil, China, Estonia, India and Mexico.
Given the new BEAD funding notice makes no mention of Buy America, broadband vendors will likely stick to plans to adhere to those regs.
Steve Schwerbel, director of state advocacy at WISPA, told Fierce the BABA rules “are being taken seriously across the vendor ecosystem” and that he’s optimistic most WISP vendors are prepared to “deliver products that meet all federal requirements.”
Satellite angle
Beyond just FWA, the BEAD update put satellite players back in the game. But they probably don’t have much to worry about on the Buy America front.
BABA “shouldn’t be a significant issue” for Starlink and Amazon’s Kuiper, according to Mobile Experts Principal Kyung Mun, as their equipment is mainly sourced from the U.S.
Starlink’s parent company SpaceX builds its own satellites and terminals in factories in Texas and Washington state (where Kuiper also has its manufacturing hub). Other Starlink components reportedly come from subcontractors in Taiwan and Vietnam, according to Reuters.
Other BABA compliance challenges
Regardless of the kind of kit they produce, vendors have a fine line to walk to not slip up with BABA.
“Just the location of the factory is not enough to determine the country of origin” for components, said Nick Gariano, senior regulatory affairs analyst at Border States, which provides supply chain products and services for the communications, construction and utility sectors.
Products may have “Made in USA” labels or a note that mentions they’re made of both U.S. and imported parts. “None of these are a certification of compliance with Buy America rules,” Gariano warned in a webinar this week hosted by the Fiber Broadband Association.
BABA isn't broadband specific - it also applies to a wide range of federal infrastructure projects, including those related to energy, transportation, environmental programs and more. “Each one has its own requirements, its own customers, its own scope,” he noted.
That’s why broadband manufacturers need to know the specific federal statute they’re dealing with when a customer requests proof of BABA compliance. Otherwise, they risk “[applying] American status to an item that’s not American” or “excluding foreign materials that you can use,” Gariano concluded.