Broadband Stimulus: The Service Provider's Opportunity

RUS

The $2.5 billion available under the RUS Broadband Loan and Grant Authority program covers loans, grants and loan guarantees for open access broadband infrastructure projects that serve primarily rural areas. Under the Recovery Act, at least 75 percent of the area to be funded must be in a rural area that “lacks sufficient access to high speed broadband service to facilitate rural economic development”. The Broadband Loan and Grant Authority program will give priority to projects that will: a) give end the users a choice of Internet service providers; b) serve the highest proportion of rural residents that lack access to broadband service; and c) be fully funded and ready to start once they receive funding under the Recovery Act. Priority will also be given to projects that can commence quickly. Projects funded through this program may not also be funded through the BTOP.

FCC

The FCC does not have the authority to issue grants or loans. Instead, as indicated above, the Recovery Act charges the FCC with creating a national broadband plan. By February 17, 2010, the FCC must deliver to Congress a national broadband plan that seeks to ensure that every American has access to broadband capability and establishes clear benchmarks for meeting that goal. On April 8, 2009, the agency released a Notice of Inquiry to launch this effort by seeking comment from all interested parties on the elements that should go into a national broadband plan. According to the Notice, “[w]e recognize that achieving this goal requires the wholehearted effort of both the private and the public sector.”

The Notice further states that the FCC’s plan must reflect an understanding of the problem, clear goals for the future, a route to those goals, and benchmarks along the way. And the plan must also allow for modification as the agency learns from experience. According to the Notice, “our plan must reflect the input of all stakeholders — industry, American consumers; large and small businesses; federal, state, local, and tribal governments; non-profits; and disabilities communities”.

Entities interested in applying for grants or loans from the NTIA or RUS must be prepared to act swiftly as the awards process will proceed at a rapid pace. Interested parties should begin assembling applications now to meet upcoming filing windows. Moreover, the process will be governed by NTIA and RUS rules and regulations so applications must adhere to such requirements.

The BTOP and related RUS programs have the potential to change the U.S. broadband infrastructure, and would appear to present an unprecedented investment opportunity for certain service providers, nonprofits, as well as state and territorial government entities which qualify for grant or loan funds.

Please feel free to contact us if your organization is interested in participating in the NTIA BTOP or RUS grant and loan programs, or if you have questions about the programs.

The Law Offices of Thomas K. Crowe, P.C. assist clients in applying for, and matters related to, Broadband Technology Opportunities Program. The Firm has experience representing service provider, nonprofit, and state entity and territorial clients before the NTIA, RUS and FCC. The Firm’s Web site is www.tkcrowe.com, and phone number is 202-263.3640.

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