Those applying for federal funds in the next round of the Commerce Department’s broadband stimulus plan are keeping their fingers crossed and hoping for the best. A more effective process has been promised by the U.S. Government following widespread criticism of their rules during the first round of funding.
Just this week, the National Telecommunications and Information Administration (NTIA) and Rural Utilities Service (RUS) announced this second round of broadband stimulus funding, with an additional $4.8 billion to be added to the American Recovery and Reinvestment Act grants and loans for broadband expansion and adoption throughout the United States.
“In response to lessons learned from the first funding round, RUS is making important changes that will make the process easier for applicants and target our resources toward ‘last-mile’ broadband connections to homes and businesses,” said Jonathan Adelstein, RUS Administrator.
RUS plans to put funds toward last mile projects and middle mile projects with two main funding options. One involving grants covering up to 100 percent in remote rural areas with the other using a 50/50 loan/grant appropriation. Additionally, there will be a base 75/2 grant/loan combination allowing for flexibility for RUS to seek a waiver if additional money is needed for areas that are difficult to serve. Both rural areas and municipal institutions including hospitals, community colleges, and public safety institutions are major targets of the stimulus in deploying WiMax and other wireless broadband services.
Four states have been awarded funding during the first round and a number of other service providers are vying for funding as well. This second round of funding will happen later in 2010, providing grants for satellite service for those who are still unserved after all other Recovery Act broadband funding is awarded. There will also be Technical Assistance grants for developing plans to use broadband for regional economic development and rural libraries funded by the USDA under the Recovery Act. Companies are able to apply to both programs and RUS will eliminate the two-step process for BIP applicants, allowing them to focus on one specific program while preparing a more solid application.
$150 million will be given to Public Computer Center projects by the NTIA, expanding access to broadband connection and increasing capacity at public libraries and other public institutions that service the general public. The NTIA will also award at least $100 million for broadband education and training in areas where broadband technology is underutilized.
Robb Henshaw, Global Director of Marketing and Communications at Proxim Wireless explains how those in need of funding can utilize this second round, providing words of guidance and hope for the future of wireless broadband-
“Remember, just because the Round One deadline has passed and second and third rounds are being consolidated does NOT mean that there is no hope to receive funding for your broadband wireless network. There are a lot of options out there for any organization that is willing to plan ahead and put the time and resources required into the application process. And even if your organization is resource constrained, there are plenty of services out there available to help you prepare your application in time.”
The effects of the second round of funding will be interesting and very telling of the future of expansion of wireless broadband throughout the U.S. Questions and issues involving the types of jobs the stimulus will generate, the influence of major providers like Sprint and Clearwire, and infrastructure developments funded by the stimulus are just a few among many main topics that are up in the air. At this point, it appears that the allotted funds and in-depth planning of round two funding may be the answer to successfully addressing the above issues and increasing the use, quality, and value of wireless broadband in the U.S. Only time will tell.
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