Broadband Stimulus Funding Questions Answered

July 1, 2009 Comments
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The Rural Utilities Service and the National Telecommunications and Information Administration on July 1 released a 121-page “notice of funds availability” for the broadband economic stimulus initiative. Myriad details are explained throughout the document; for service providers and their partners, perhaps the most important, immediate, aspects surround the definition of broadband; the role of the middle mile; network management; and whether for-profit companies are eligible for any of the $7.2 billion in deployment funds.

It’s important to note the first round of recipients will not actually be announced until early November; the government aims to distribute the money no more than 30 days later. Two more rounds will ensue, although the agencies did not provide additional timelines except to say all money will be dispersed by Sept. 30, 2010.

Further, awards won’t be paid until states have had their say in which of the pre-screened applicants should take on which projects.

“This will allow states, who have the local knowledge and geographic expertise, the opportunity to help target and expedite release of these important funds,” National Association of Regulatory Utility Commissioners President Frederick Butler and Ray Baum, chairman of the organization’s telecom committee, said in a joint statement.

Once that feedback is gathered, the NTIA and RUS will award loans and grants on a points system. The company or institution with the most points for a given project receives the money.

There are other critical pieces of data. The government considers all manner of broadband providers eligible to compete for stimulus funds – that includes WiMAX and Wi-Fi operators, some of whom feared non-techie types in government might misunderstand or overlook the part wireless can play in reaching unserved and underserved areas.

And then there are the long-awaited answers to the questions of net neutrality oversight, the definition of broadband, the role of the middle mile and whether the private sector will be allowed to participate in the broadband stimulus initiative. Click here or on the source article below to get the rest of the details.

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