Overbuilding

Overbuilding is the deployment of new fiber optic broadband infrastructure in areas where existing fiber networks already provide service, creating duplicative physical plant that may reduce the economic efficiency of public infrastructure investment. In the BEAD Program context, overbuilding concerns arise when proposed deployment projects would construct new fiber to locations already served by fiber-to-the-premises networks meeting program speed and latency requirements.

The BEAD NOFO establishes a prioritization hierarchy that directs funding first to unserved locations (lacking 25/3 Mbps service), then to underserved locations (lacking 100/20 Mbps service), and finally to community anchor institutions lacking gigabit connectivity—explicitly deprioritizing investment in areas with existing reliable broadband. The SUCCESS for BEAD Act maintains this framework for remaining amounts by prioritizing proposals serving "unserved or underserved areas, including Tribal lands" before other eligible uses.

The overbuilding question becomes more complex when existing fiber networks are not carrier-neutral—where a single provider controls access and pricing. Open-access middle-mile networks deploying wholesale fiber alongside proprietary last-mile networks may create technical "overbuild" while serving legitimate competitive and resilience purposes. The SUCCESS for BEAD Act's explicit support for carrier-neutral wholesale fiber with dedicated challenge process provisions reflects this nuance, distinguishing between duplicative private infrastructure and public investment creating competitive access that benefits consumers and enables market entry by additional providers.