* Update on U.S. government's approach to distributing broadband funds
Within the massive American Recovery and Reinvestment Act of 2009, there is about $7.2 billion set aside for building out broadband infrastructure, and the process of getting that funding into carriers’ hands is under way.
The Act has a focus on rural and other underserved areas. Part of the money is controlled by the Department of Agriculture’s Rural Utility Services, part is controlled by the Department of Commerce’s National Telecommunications and Information Administration (NTIA), and the FCC is supposed to come up with a master broadband plan for the nation. Last month, the departments held public meetings together to let the public know their position and to solicit comments from interested parties.
Early this month, Mark Seifert, senior advisor to the assistant secretary at the NTIA, testified before a congressional subcommittee on the NTIA’s approach to the broadband funding. He stated the Administration’s five goals: to create jobs, to close the broadband gap in the U.S., to stimulate investment (by requiring that anyone who takes federal money must put in their own funds as well), to encourage the demand for broadband, and to build out broadband to schools, hospitals, libraries, universities and other institutions.
He noted that one of the most immediate challenges will be to define terms. What constitutes “broadband”? What qualifies as “underserved”? Seifert indicated that comments that were filed by April 13 would help influence those decisions.
Things should start to move pretty quickly now. Seifert said a “Notice of Funds Availability” will be published within the next month or two. The notice will describe the application process and how those receiving funds will be held accountable.
He also said there will likely be three waves of funding, so that those who aren’t ready at the beginning are able to participate later. First grants will probably be given out this fall. Applications for the third wave would probably begin about a year from now, so that awards can be given before the deadline of Sept. 30, 2010.
By the way, I found it interesting to see the Act being used in a new marketing point this week: Extreme Networks announced that its products have been listed by the U.S. Department of Agriculture as OK for deployment by carriers getting broadband stimulus funding. Seems like everyone is ready to get into the Act.
