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Intro:
The following program is brought to you by the Tennessee
Broadband Association.

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Lead Tennessee Radio, conversations with the leaders moving our
state forward.

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We look at the issues shaping Tennessee's future: rural
development, public policy, broadband,

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healthcare, and other topics impacting our communities.

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Carrie Huckeby:
Hello everyone. I'm Carrie Huckeby with the Tennessee Broadband
Association.

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Paige Shapiro is here this morning talking to me on this episode
of Lead Tennessee Radio.

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Paige is NTIA's federal program officer for the state of
Tennessee, and she sat down with me about a year ago, if you can

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believe it, Paige, a year.

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Paige Shapiro:
That's impossible to believe.

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Carrie Huckeby:
I know. Where did it go?

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To talk about BEAD and digital equity.

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There's been a lot of activity in the last year, so I wanted her
to come back because I know a lot has happened.

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$813 million, to be exact, announced a few months ago is
Tennessee's allocation.

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So there's many wheels turning in the NTIA and at the state
broadband office.

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So welcome, Paige.

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Like you said, hard to believe a year has gone by.

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Paige Shapiro:
Yes. Thank you so much.

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I'm excited to be here.

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And excited that you all had me back.

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Carrie Huckeby:
Well, of course, we talked last November, and you were fairly

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new to NTIA.

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So what's the last year look like for you and your role?

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Tell us some of the highlights, the successes and even some of
the challenges.

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Paige Shapiro:
Yes. So it has been a year of learning and meeting new people.

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I've really enjoyed my time at NTIA.

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You know, completing the five year action plan was a really big
highlight, working with the state broadband office to get that

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finished and working with all of you all to write the content
for that.

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We also partnered, so the state broadband office, partnered with
the University of

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Tennessee's Public Service Institute, and they came beside us to
help write our

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digital opportunity plan and our initial proposal.

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And that partnership has been really fun.

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And then, probably my favorite part about this job is I've done
several speaking engagements with i

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ndustry groups, like the Tennessee Broadband Association.

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And I've been invited to do tours and listening sessions to just
learn from those who have been in the industry a lot longer than

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I have. And that's been a really helpful and also enjoyable
experience.

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You know, just there are so many great people that work in this
industry in Tennessee.

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As far as challenges, just like with any governmental entity, 
you know, the red tape can be

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challenging, but to work with such a wonderful group of people
that can help you get through and really

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collaborate and not throw up their hands and say, "Oh, this is
just so difficult." But really being able to come alongside

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in partnership to find solutions has – it's been difficult, but
it's been really interesting work.

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Carrie Huckeby:
Well, it's a great industry to be in, so I can imagine just
having a year of networking with everyone and learning has

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probably been a great part of the job.

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And, as you said, we did really appreciate you coming to the
TNBA and doing some breakout sessions and some panels because

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we always learn from you, Paige.

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Paige Shapiro:
Good. That's what I want to hear.

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Carrie Huckeby:
Okay, well, the $813 million allocation for Tennessee is a huge
opportunity, of course.

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And NTIA isn't just saying, "Here's the money.

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Do with it what you will and build a network." There's a
checklist, and it requires in the

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beginning stages that you meet with the communities.

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And I'm sure UT was very helpful in that part.

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And meeting with communities and stakeholders, talking to
marginalized communities.

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And as you said, developing that five year plan and those
initial proposals.

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NTIA has some high bar objectives in addition to reaching the
unserved and

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underserved areas.

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Tell us a little bit about why NTIA felt that these other items
were important to include, you

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know, other things besides just get out there and build that
network?

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Paige Shapiro:
Absolutely. So it's always important to start with the statute.

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So we received our funding through the bipartisan infrastructure
law.

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And this is truly a historic amount of funding.

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NTIA wanted to be sure that we were great stewards of those
taxpayer dollars, and that we spent it in the right ways.

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So of course, like you mentioned, we wanted to be sure that we
engaged historically left out

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communities. And we want to be sure that we heard from industry
and those with

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internet service that wasn't serving their needs and those that
didn't have it at all, that we are actually solving the

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problem in ways that will last us for literally a generation.

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So we talk about this as once in a generation funding.

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And we really want this infrastructure investment to carry us
through, you know, this

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generation. And so we're really focusing on, you know, making
sure that our networks are resilient

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and making sure that, you know, we are going to have good paying
jobs that come out of this

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funding in the communities where we're building the
infrastructure, where it doesn't currently exist.

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So, you know, it's so much more than a network.

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It really is making sure that people have access to the
infrastructure they need to thrive,

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making sure that people have access to jobs that can help
support their families, making sure that our

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industry can sustain the investment long term.

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So that is the purpose for having such a high bar, is we really
want to be sure that at the end of

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this, we can step back and say, "We did it."

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Carrie Huckeby:
Yes, it's all about connectivity.

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We want everyone to be connected.

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And part of that challenge, I think, is digital equity and
affordability.

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And we have talked about that quite a bit.

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It's an important piece for the adoption to ensure that as many
as possible are connected.

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The ACP program is managed by the FCC, and funds were
appropriated so that there

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was a $30 credit given, I think, to consumers that qualify.

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And I know our broadband providers have really pushed that over
the last few years to get that out there and educate their

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consumers. NTIA is requiring providers to participate in an ACP,
but

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we all know the rumors, and we all know the talk that the
program may not be funded next year, and that may go

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away.

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If the fund does go away, and of course, there's also rumors that
it'll be covered by something else, and those appropriations will

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come to keep that program going.

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But if it were to go away, what happens to NTIA's requirement
that providers have a

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low cost option?

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You know, is the ideal that that $30 is the low cost rate or,
you know, will you be able to determine what that low cost rate

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is per company or region or something like that?

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Talk about that just a little bit.

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Paige Shapiro:
Yes. So the low cost service option is a requirement of the
bipartisan infrastructure law.

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So even if the Affordable Connectivity Program goes away, which
we

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are very confident that our colleagues at the Federal
Communications Commission are

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working to ensure the integrity of that program.

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So I want to be sure that I say that.

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But if the ACP did go away and wasn't refunded,

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providers would still be required to offer that low cost service
option per the law.

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That said, the state broadband office in their initial proposal
is putting together what

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Tennessee's low cost service option will look like.

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Tennessee, in their initial proposal, is also creating a
contingency plan that will help providers

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understand that if ACP does go away, here is the next

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step in the process of what providing that low cost option will
look like.

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So if ACP goes away, it likely will not look the same.

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But I will say, number one, Tennessee has not yet submitted that
initial proposal with that suggestion to

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NTIA. So we have not yet reviewed it, and it is not approved.

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And then also no plan is firm and unchanging and approved

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until it's approved.

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So there's quite the process on the NTIA side.

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And our assistant secretary, Secretary Davidson, is reviewing
every single plan,

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and the low cost option is one of the many things that he's
making sure makes sense for not only industry, but the

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citizens of our state.

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Carrie Huckeby:
Well, as we said in the introduction, there are a lot of wheels
turning.

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So and a lot of pieces to this huge puzzle.

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So, I know that there's a lot of things being figured out and
considered.

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In the checklist probably gets longer instead of shorter, right?

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Paige Shapiro:
Yes, absolutely.

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And I just want to flag for you all that your state broadband
office is incredible

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and is doing a wonderful job advocating what is best for you all
as the industry, as well

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as what it means to be a resident in Tennessee and making sure
that this funding is accessible and

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sustainable. So when you get the opportunity, you should
definitely thank Taylre Beaty and her team because they're

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doing a really good job trying to make this work for everyone.

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Carrie Huckeby:
100% agree.

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They do a great job there, and we're very fortunate to have
Taylre and her team.

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They've been great to work with, for sure.

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So the question I get asked a lot from our associate members
and platinum members, is

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when can we expect this to happen?

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What's a realistic date to see funding awarded and projects
started?

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Louisiana just announced the great news that their BEAD plan was
approved by

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NTIA. That's great news for them.

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They've done a lot  of work.

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So what's the next step for Louisiana?

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And when these plans are approved, what kind of timeline is the
state

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looking at to actually submit start submitting applications or
receive funding?

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Paige Shapiro:
Yes. So I am not Louisiana's FPO, as you know.

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Carrie Huckeby:
True, true.

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Paige Shapiro:
But no, it's helpful because I did want to highlight that every
state is a bit on its

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own trajectory and its own timeline.

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Carrie Huckeby:
Okay.

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Paige Shapiro:
But if you look at Louisiana, Tennessee will follow a very
similar path.

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So right now, Tennessee has submitted its volume one, which
really focuses

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on here is how we are going to run the state challenge process.

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And as a reminder, I know that you all know this, and I've said
it a million times in the last year, but our state challenge

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process really helps the state finalize which broadband
serviceable locations

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are eligible to receive BEAD funding.

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So the state challenge process is incredibly important, and I
hope that you all are planning to participate in that.

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So all of that said, so right now Tennessee's volume one is
under

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review with NTIA.

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After that volume one is approved, Tennessee will get ready to
run

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the state challenge process.

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And so you're going to see based on your timeline, it will start
somewhere around late

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January to mid February, somewhere in that window.

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And it will run for 75 days.

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So on December 20th, the state broadband office is submitting
their initial proposal, volume

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two. What the volume two communicates is how the state of
Tennessee will run

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the BEAD subgrantee process.

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And so while Tennessee is getting its state challenge process
ready and running that state challenge

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process, NTIA will be reviewing our volume two.

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After the volume two is approved, the state will have one year
to

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run its subgrantee process, award subgrantees, do everything
that they need to do to

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complete their final proposal.

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The final proposal will be submitted to NTIA for review, and
then money goes out

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and projects can start.

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So we're talking about, you know, shovels in the ground.

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The exact timeline of what that looks like, I know that what you
asked me for at the beginning was a date, and that's just really

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difficult to determine, because it really depends on, you know,
how

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quickly the state can turn around NTIA's feedback and how
quickly NTIA can get through review.

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So there's a lot of things at play when you're funding 56
states, but I will

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say that if you look, the earliest that we're going to be
shovels in the

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ground is 2025 at the very, very earliest.

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When in 2025 is hard to say.

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Carrie Huckeby:
That's completely understandable.

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I know a lot of people have said that it would look, you know,
it would be 2025 to 2026,

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depending on when those reports and things were approved.

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So you know, I think that 2025 mark is what is in everyone's
head,

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sometime that year.

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So that's good.

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It's, you know, it's a goal and a target, for sure.

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Paige Shapiro:
Yes. And I will say that again, your state broadband office is
trying to get it

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done as quickly as possible.

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They want to ensure that every Tennessean is connected as
quickly as possible.

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They know the urgency of the issue, and so they're doing
everything they can to collaborate and get feedback, but also

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move through the process.

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Carrie Huckeby:
Well, as you said earlier, too, it's an historical infrastructure
bill and appropriation, the

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funding.

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You certainly want, the urgency is there, but you certainly want
to do it right.

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Paige Shapiro:
Exactly.

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Carrie Huckeby:
You can definitely respect the time that it takes to pull all
those pieces together.

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And speaking of time, so when, let's say we're looking at 2025
and people are putting shovels in the ground or our

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providers are doing that.

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When the project starts, there's a requirement to complete within
four years.

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And since there are concerns, you know, we've had a lot of
conversations about workforce, supply chain,

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permitting, environmental studies, just Mother Nature on our
own.

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How flexible do you see NTIA being with deadlines or delay
requests?

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Is that something that you're, you know, looking into the future
and know that's going to be something you're going to be

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challenged with?

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Paige Shapiro:
Yes. So we absolutely understand that these challenges that we
have identified, and

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probably some challenges that we haven't yet identified, will
absolutely present themselves.

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And NTIA has been incredibly proactive and trying to head these
off as much as we

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can. So, you know, there's been a lot of work with industry,
nonprofits, you know, experts

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in the field to help us make sure that we're doing everything we
can to prevent these delays from

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happening. That said, there are 56 states and territories who
are trying to do very similar

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projects at one time.

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And so when these different delays occur, and they could look
very different in states, right?

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So in some states the construction window is very small of when
you can actually construct just because again of the

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weather. So, you know, they may experience a different delay
than Tennessee, for example.

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And so NTIA, I like to say that NTIA is reasonable.

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We are reasonable people.

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And so I think that as those present themselves in the future
years, you know, I wish I had a crystal ball.

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I wish I could tell you exactly what was going to happen.

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But I feel confident that NTIA will work with states to make
sure that we ultimately meet our goal of

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internet for all.

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Carrie Huckeby:
That makes sense.

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It's certainly will be different putting up a network in North
Dakota than it will be in Tennessee.

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Paige Shapiro:
Right.

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Carrie Huckeby:
And also workforce wise, you know, where the availability is.

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So I can certainly see having to look at every one of those 56
territories differently.

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Recently, I saw the announcement that NTIA made some changes to
the letter of credit requirement.

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I know in the beginning there were lots of questions about that,
and maybe some concerns.

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Was that change made due to the feedback from the states or
other reasons?

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And are there any other items that NTIA is evaluating that could
change before, you know the final decisions

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are done?

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Paige Shapiro:
Great question.

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So as you all know, the letter of credit was in our notice of
public

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funding, and we knew from the beginning that there may be
additional flexibility that was

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needed when we put that in there.

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So the purpose of the letter of credit was really to ensure that
those states and

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territories could evaluate whether BEAD applicants had the
financial

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capacity to deliver the network.

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And that is required by the statute, by the way.

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So this is not something that NTIA layered.

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This is in the bipartisan infrastructure law.

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Carrie Huckeby:
Okay.

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Paige Shapiro:
Well, we recognized immediately that some prospective subgrantees
may be able to demonstrate their capabilities using

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methods other than the letter of credit.

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And so we put a waiver opportunity in place.

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However, we heard concerns from stakeholders everywhere that the
letter of credit would maybe have an adverse

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effect on small and medium internet service providers.

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And in addition, some smaller women-owned and minority-owned
businesses didn't necessarily have the relationships that they

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needed with the qualified financial institutions.

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So instead of allowing everyone to submit the one off waiver
process,

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we created a conditional waiver process that gave more structure
to the other ways that

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subgrantees could meet the letter of credit requirements.

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So we knew from the beginning, when we wrote the NOFO that things
like this were going to happen.

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We listened to industry and business owners, and we changed what
we could.

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And we gave the flexibility that we could to still be in
compliance with the law.

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And this just happened to be something where we had the ability
to do that.

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Right now, I do not know if there are other things, like letter
of credit, that are being

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considered, but I do know that NTIA continues to solicit and
receive feedback

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from our stakeholders.

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So if there is a risk that you all see or something's really not
working for you, then we encourage you to tell

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NTIA, so we can be flexible within, you know, our means.

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We can't just go rewrite the bipartisan infrastructure law, but
we can do things like what we did with letter of credit.

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Carrie Huckeby:
Yes. And I think from the beginning that it's been good to NTIA
to open up, and the broadband offices,

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to open up the conversations so that we can give feedback about
the concerns, and that in some cases, there can

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be a workaround or another solution like the letter of credit.

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And in some instances there may not be.

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From the beginning, we've understood that one size does not fit
all.

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And that's why you as the FPO works with the state of Tennessee
to represent our interests versus

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putting all 56 territories in the same basket.

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So I think that's been a good piece of this.

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Is the internet for all website the best way to stay up to date
on all that's going on, Paige, if there is a good way to keep up

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with all the wheels turning right now?

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Paige Shapiro:
So the internet for all website is a wonderful resource.

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Highly encourage you all to look there.

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I would also say to make sure that you're signed up for the
broadband office's newsletter.

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Right now, they're putting out a lot of great content as it
relates to their CPF programs.

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But soon we're really going to be turning toward the BEAD
program.

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So I would absolutely keep up with Taylre and her team that way,
if you're not already.

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And then the last resource I would point you to is the Broadband
USA website.

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Where the internet for all is really focused on the consumer,
Broadband USA has a lot of

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technical assistance for broadband providers.

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And there's actually a great technical assistance hub on the
Broadband USA website, so you can access that for your more

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specific questions and needs.

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Carrie Huckeby:
Great. I will add those to our TNBA email newsletters so that our
members know what those

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resources are and where to go to find answers to their
questions.

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Is there anything else, Paige, that's important you want to add
that maybe we didn't cover or talk about?

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Paige Shapiro:
No, I don't think so.

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Maybe the only thing I would add is I continue to be available as
a resource for your members.

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And if they have questions, they can always reach out to you or
contact me directly.

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I really want to be someone who can provide answers.

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I'm not going to say quick answers because sometimes that is not
an option.

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But if you have questions, I am happy to advocate to try to get
you faster and

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accurate answers for questions.

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So just continue to use me as a resource as well.

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Carrie Huckeby:
We will, and we appreciate you being available, Paige, for those
emails and phone calls.

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And I know you'll agree, won't you, to come back in a year?

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Paige Shapiro:
Oh please.

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I would love to come back.

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Carrie Huckeby:
All right. Fantastic.

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My guest has been Paige Shapiro, Tennessee's federal program
officer with the US Department of Commerce.

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You've been listening to Lead Tennessee Radio, produced by the
Tennessee Broadband Association, cooperative and independent

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companies connecting our state's rural communities and beyond
with world class broadband.