Vendors and service providers are busy putting the final touches on their applications for broadband stimulus funds ahead of tomorrow’s Round One deadline.
The federal government is appropriating $7.2 billion toward expanding broadband access to unserved and underserved communities across the United States. The National Telecommunications Information Administration (NTIA)’s Broadband Technology Opportunities Program (BTOP) will distribute $4.7 billion in total grant funds; the Rural Utilities Service (RUS) allocates $2.5 billion. Round One includes part of those funds; applicants also will have a chance to compete in Rounds Two and Three.
Among the WiMAX providers hoping to get a boost from the stimulus package are Towerstream and ERF Wireless.
Many vendors in the wireless space have offered assistance to applicants. At least five major sections of the 39-page application can be strengthened with contributions from vendors. Harris Stratex Networks, for one, has seen interest across the board from interested entities including city and state governments, educational institutions, public safety, wireless ISPs and carriers, according to Gary Croke, who is responsible for the company’s Go Stimulus program. “I really think the stimulus is a once-in-a-lifetime opportunity” for telecom and Internet equipment providers, he says.
On Tuesday, Harris Stratex announced it had signed a contract with India’s ICOMM to supply, install, commission and maintain a mobile WiMAX network for Bharat Sanchar Nigam Ltd (BSNL). The company has identified India as a major market for its WiMAX products.
But it’s also helping out quite a few stimulus fund applicants that want to use WiMAX. “We believe fundamentally that wireless is ideal for stimulus,” he says, noting it’s “shovel ready.” Actually, the ideal solution doesn’t need a shovel at all, he adds. “That’s something WiMAX and microwave backhaul both provide.” Wireless also is less costly compared with DSL or fiber, he says.
P.J. Louis, who has been selected by NTIA as one of the reviewers of the projects, says he sees the stimulus funds as a way to jumpstart WiMAX in a lot of areas, but it won’t be the best solution in all cases. In some markets, it may make more sense to build out fiber or provide DSL.
Louis says he would expect the major U.S. carriers to apply for the funds as well because they’re operating businesses today and would be doing a disservice to the public if they didn’t. Whoever gets the grants will need to operate in some fiscally responsible fashion after the initial build.
Interestingly, as of yesterday, Louis had not yet received the guidelines on which he is supposed to review applications.