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The National Telecommunications and Information Administration (NTIA) has published draft rules outlining the Buy America requirements for materials used in the construction of broadband networks under the Broadband, Equity, Access and Deployment (BEAD) program. The billion federal program aims to connect all Americans to affordable high-speed internet. According to federal rules, 55% of project materials must be manufactured domestically.

The Build America, Buy America Act, along with other initiatives such as the CHIPS and Science Act, is part of the Biden Administration’s efforts to boost domestic manufacturing and create new jobs in industries like advanced manufacturing and semiconductor production. While the Buy America requirements aim to support domestic manufacturing, exceptions can be made when there is insufficient domestic manufacturing capacity to meet construction demand.

The NTIA acknowledges that the majority of fiber internet and computing components are currently manufactured overseas, and relying solely on US manufacturers could result in delays and increased costs. To address these concerns, the NTIA has proposed exceptions to the Buy America rules for the BEAD program. However, the scope of the waiver is narrower than anticipated by some broadband leaders.

Under the draft proposal, the cladding surrounding the fibers inside fiber optic cables can be sourced from outside the US, but the fibers themselves must be domestically manufactured. When it comes to electric components, such as optical line terminals, optical line terminal line cards, optic pluggables, and optical network terminals, the NTIA recommends that they are mostly made in the US.

Interested parties have until September 21 to provide comments on the draft waiver. The NTIA’s final rules will determine the extent of Buy America requirements for BEAD program projects.

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