NTIA BEAD Concept Note

Strategic Use of BEAD Non-Deployment Funds to Address Broadband Affordability in Multi-Dwelling Units (MDUs)

Submitted by: NEO Network Development Inc. (NNDI) March 17, 2026

Submitted to: National Telecommunications and Information Administration (NTIA)

Policy Topic: Utilization of Broadband Equity, Access and Deployment (BEAD) Program Non-Deployment Funds to Improve Broadband Adoption and Affordability in Urban Multi-Dwelling Housing (MDU)

1. Policy Background

The BEAD Program represents the largest Federal investment in broadband infrastructure in U.S. history. While primarily focused on expanding network infrastructure to unserved and underserved areas, significant digital divide challenges remain in urban environments where broadband infrastructure technically exists, but adoption rates remain low.

In many urban communities, particularly within MDUs, affordable housing, and senior living facilities, residents continue to experience barriers to reliable connectivity due to:

High subscription costs

Limited provider competition

Poor service reliability

Lack of internal building connectivity infrastructure

Intermittent payment capacity among lower-income residents

As a result, many urban residential buildings experience broadband adoption rates significantly below national averages, even where network infrastructure is present nearby.

These adoption gaps represent an opportunity for the NTIA to strategically deploy BEAD non-deployment funds to address affordability and connectivity barriers without requiring additional network construction.

2. Policy Proposal

NNDI proposes that NTIA consider establishing a targeted MDU Connectivity Grant Program utilizing BEAD non-deployment funds administered through State Broadband Offices.

This program would support the installation of in-building broadband infrastructure and shared connectivity systems in qualifying multi-dwelling residential properties with two or more residential units.

Eligible Applicants

Eligible applicants could include:

Housing Authorities

Affordable Housing Owners

Senior Living Facility Operators

Private Residential Building Owners

Public Housing Commissions

3. Grant Structure

Under this concept, eligible properties could apply for a one-time grant of up to $1,000 per residential unit.

Grant funds would support the deployment of internal broadband connectivity infrastructure, including:

Wi-Fi access points

Broadband routers

Structured internal wiring

Ethernet or fiber distribution within buildings

Network management hardware

Funding would enable building-wide connectivity capable of supporting multiple service providers.

4. Targeting and Eligibility Criteria

To ensure the concept addresses areas with genuine adoption gaps, eligibility would be tied to measurable broadband adoption threshold, including properties demonstrating broadband subscription rates below 40% of occupied units.

Adoption levels could be verified through:

Tenant surveys

ISP subscription verification

Building management data

This approach ensures funds are directed at buildings where connectivity barriers persist despite nearby broadband infrastructure availability.

5. Concept Objectives

NNDI’s proposal would advance several national broadband policy objectives:

Increase Broadband Adoption

By addressing affordability barriers within MDUs, the program would increase household broadband adoption rates in urban communities.

Improve Digital Equity

Affordable housing and senior housing communities would gain reliable connectivity that supports education, healthcare access, workforce participation, and public safety.

Improve Service Competition

Building-wide infrastructure can enable multiple ISPs to compete within properties, reducing the effects of exclusive service arrangements.

Reduce Service Disruptions

Shared connectivity infrastructure can help ensure residents maintain baseline internet access even during periods of temporary financial hardship.

Maximize BEAD Impact

Extend the impact of BEAD funds beyond network construction by directly improving connectivity outcomes for millions of urban residents.

6. Implementation Through State Broadband Offices (SBOs)

The program could be administered through existing SBOs that already oversee BEAD implementation.

SBOs would:

• Accept grant applications from property owners
• Validate adoption metrics
• Ensure compliance with BEAD program objectives
• Monitor project completion and performance

This structure avoids creating new Federal administrative frameworks while leveraging existing BEAD oversight mechanisms.

7. Example Urban Deployment Scenario

Urban environments such as Detroit demonstrate how this approach could quickly increase broadband adoption within existing housing infrastructure.

Many multi-dwelling residential properties already sit within close proximity of existing fiber networks but lack the internal infrastructure required to deliver reliable service to all units.

In these scenarios, relatively small investments in building-level connectivity infrastructure can unlock broadband availability for hundreds of residents simultaneously.

NNDI has developed an example deployment model illustrating how this concept could be implemented within existing infrastructure environments.

Additional technical details are available via the websites reference materials.

8. Conclusion

Closing the digital divide requires more than network deployment alone. In many urban communities, affordability, building infrastructure, and adoption barriers remain the primary obstacles to universal broadband access.

Strategically deploying BEAD non-deployment funds to support MDU connectivity improvements would enable the NTIA to address these barriers efficiently while maximizing the impact of the nation’s historic broadband investment.

NNDI welcomes the opportunity to provide further technical insight or implementation recommendations that may assist NTIA in advancing this concept.