Vecima Networks is another vendor preparing for the Broadband Equity, Access and Deployment (BEAD) program’s Buy America rules, announcing today plans to onshore some manufacturing operations into the U.S.
The company said it will domestically manufacture “certain products” from its Entra portfolio, Vecima’s distributed access architecture (DAA) technology. By establishing a U.S-based manufacturing presence, Vecima aims to increase its operations to meet the proposed Build America, Buy America (BABA) requirements for BEAD.
BABA stipulates that fiber networks funded by BEAD must use components that are at least 55% made in America – a rule that has received some pushback from the industry.
Vecima said two of its Entra products – the SF-4X Remote Optical Line Terminal and EN8100 Remote PHY Access Node – are currently compliant with BABA requirements under the Middle Mile Broadband Infrastructure Program.
Like BEAD, the Middle Mile program was established by the Infrastructure Investment and Jobs Act (IIJA). Vecima said it has already “widely deployed” those two products across North America.
“Our current Entra fiber and cable access platforms have been broadly successful with service providers due to strong technical and operational differentiation,” said Vecima COO Clay McCreery in a statement.
Indeed, Vecima in its Q4 results noted Entra has been the fastest growing product family, representing 73% of fiscal 2023 total sales. However, CEO Sumit Kumar flagged the DAA market may experience a “digestion phase” heading into 2024.
“Today’s announcement that we’re planning to build products in the United States demonstrates our continued commitment to the marketplace and to empowering communities with equitable access to the broadband networks that fuel progress,” McCreery added.
Vecima anticipates its onshoring move will allow it to join NTIA’s list of BABA-compliant vendors for the BEAD program, once the NTIA finalizes the proposed requirements and waivers.
“Vecima is currently engaged with the NTIA to determine specific requirements we must meet to achieve BEAD/BABA compliance,” a company rep told Fierce. “Moving manufacturing into the U.S. will also improve logistics, as we will have finished product located much closer to U.S. service providers.”
Other vendors that have expressed support for BABA requirements include Calix, Infinera and Nokia – the latter recently announcing plans to build a fiber electronics plant in Wisconsin.