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4 key points on broadband stimulus money

In her research note this week, Boston based Avian Securities Senior Telecom Research Analyst - Catharine Trebnick, gave an update on the broadband initiatives of the American Recovery and Reinvestment Act (ARRA). According to Trebnick, "Under the ARRA, the Rural Utilities Service (RUS) of USDA and the National Telecommunications and Information Administration (NTIA) of the Department of Commerce, will be dispersing $2.5 billion and $4.7 billion respectively for broadband initiatives. The Department of Energy has $11 billion for ‘smart grid’ projects, of which telecommunications is a key piece." Interestingly, Trebnick outlined 4 key points: 1. Near term we don’t see ARRA driving incremental CapEx in FY09. The Office of Management and Budgets (OMB) released the new timeframes for distribution of the funds. Initial grants from NTIA are now expected December 31st, 2009. RUS awards are expected by the end of FY09 and/or distributed during 1Q10. 2. Who is expected to apply for grants? States, local counties, non-profit organizations, cable, fixed and mobile service providers are all likely to apply for grants. RFPs likely to succeed are those that have already secured funding, such as Vermont’s Telecommunication Authority (VAT). 3. Rural Operators with a large rural customer base are likely to benefit. Fixed and Mobile operators such as DigitalBridge, Embarq (NYSE :EQ) Frontier (NYSE: FTR) and Qwest (NYSE: Q) all have rural customers and could benefit from NTIA and/or RUS grants. Verizon (NYSE: VZ) maybe able to apply depending upon markets designated for LTE and the final language adopted in the NoFAs (Notice of Funds Availability). 4. We estimate approximately 50-60% or approximately $3.9 billion of ARRA funding will go to pay equipment vendors. Suppliers most likely to directly benefit are those tied to FTTx and 3G/4G with a tangible benefit to VoIP. FTTH networks reach 13% of North American households, with end-to-end fiber connections used by 4% of the residential market. (Source: FTTH Council). Timeline for Awards: 2009 - 2010

Agency and Programs Overview - RUS Source: USDA, NTIA, Zhone Technologies and Avian Securities, LLC Broadband Technology Opportunities Program (BTOP) Source: USDA, NTIA, Zhone Technologies and Avian Securities, LLC Smart Grids Source: USDA, NTIA, Zhone Technologies and Avian Securities, LLC Find up-to-date recovery information from state and territorial governments on how funds are being distributed and used to create jobs and stimulate economic growth:

StateState Recovery Site
AlabamaView Site
AlaskaView Site
American SamoaView Site
ArizonaView Site
ArkansasView Site
CaliforniaView Site
ColoradoView Site
ConnecticutView Site
DelawareView Site
District of ColumbiaView Site
FloridaView Site
GeorgiaView Site
GuamView Site
HawaiiView Site
IdahoView Site
IllinoisView Site
IndianaView Site
IowaView Site
KansasView Site
KentuckyView Site
LouisianaView Site
MaineView Site
MarylandView Site
MassachusettsView Site
MichiganView Site
MinnesotaView Site
MississippiView Site
MissouriView Site
MontanaView Site
NebraskaView Site
NevadaView Site
New HampshireView Site
New JerseyView Site
New MexicoView Site
New YorkView Site
North CarolinaView Site
North DakotaView Site
OhioView Site
OklahomaView Site
OregonView Site
PennsylvaniaView Site
Puerto RicoView Site
Rhode IslandView Site
South CarolinaView Site
South DakotaView Site
TennesseeView Site
TexasView Site
UtahView Site
VermontView Site
VirginiaView Site
WashingtonView Site
West VirginiaView Site
WisconsinView Site
WyomingView Site

What has been your experience so far seeking stimulus money? BradReese.Com Cisco Refurbished - Services that protect, maintain and optimize Cisco hardware Contact: Brad Reese | Twitter: http://twitter.com/BradReese

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