Broadband Stimulus: The Service Provider's Opportunity

NTIA

The $4.7 billion available through the NTIA program (known as the “Broadband Technology Opportunities Program” or “BTOP”) is allocated for competitive grants for broadband deployment efforts. According to Section 6001 of the Recovery Act, the program is to be established and implemented “as expeditiously as possible” and grants must be awarded before the end of fiscal year 2010.

NTIA is currently contemplating three waves of funding to allow applicants who may not be ready at the beginning of the grant program to participate in later waves. The first awards are expected to be issued in early fall 2009, with the second wave of applications beginning thereafter. A third wave of applications could begin in the spring of 2010 in order to complete a final round of awards before the statutory deadline of September 30, 2010.

Eligible entities are summarized above. Which applications the NTIA will choose to fund is a key question. The Recovery Act specifies that NTIA consider whether an application will increase the subscribership and affordability of broadband service to the greatest population of users in an area; whether the application will enhance service for health care delivery, education, or children to the greatest population of users in an area; and whether it will not result in unjust enrichment as a result of support from another Federal program in the area. The Recovery Act also requires consideration of whether the applicant is a socially and economically disadvantaged small business concern.

Grants may be awarded to: a) acquire equipment, instrumentation, and networking capability, hardware and software, digital network technology, and infrastructure for broadband services; b) construct and deploy broadband infrastructure; c) ensure access to broadband service by community anchor institutions; d) facilitate access to broadband service by low income, unemployed, aged or vulnerable populations to provide educational and employment opportunities; and e) construct and deploy broadband facilities that improve public safety broadband communications services. The federal grant portion of any project may not exceed 80 percent (absent a waiver), which means generally that a 20 percent match is required. Not less than one grant in each state is to be awarded “to the extent practicable”. States may be consulted with respect to identifying unserved and underserved areas, and regarding “the allocation of grant funds within that state for projects in or affecting the state.”

Approved grants must comply with non discrimination and network interconnection obligations set by the RUS and FCC. Among other things, the NTIA is to develop and maintain a comprehensive nationwide inventory map of existing broadband service capability and availability in the United States showing the geographic extent to which broadband capability is available from a commercial provider or public provider throughout each state. This “broadband inventory map” shall be posted on the NTIA website in an interactive and searchable format.

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