Broadband Stimulus Round 2 Gold Rush Fever! 1
Recovery Act Goals Create new jobs as well as save existing ones Spur economic activity and invest in long-term economic growth Foster unprecedented levels of accountability and transparency in government spending 2
One Year Ago Gold Rush Fever! $7.2 Billion Allocated for Broadband NTIA - $4.7 Billion - Broadband Technology Opportunities Program (BTOP) RUS - $2.5 Billion - Broadband Initiatives Program (BIP) 3
1 st Round Total: 2,200 Applications Seeking $28 Billion Infrastructure: 260 BTOP Infrastructure Apps ($5.4) 400 BIP Infrastructure Apps ($5) 830 Joint BTOP/BIP Infrastructure Apps ($12.8) 4
Today Numerous Delays Dec. 2009: First Awards Finally Announced Less than 1/4 of $7.2 Committed 5
Winter of Our Discontent Question: What Took So Long? Applicants Congress White House Tax Payers Construction Companies Vendors…and the list goes on… 6
1 st Round Winners and Losers Question: Why Did I Get Turned Down? The Clumsy Efforts By NTIA and RUS To Respond Only Intensified The Frustration of Applicants 7
Some Good News Over 30 States Awarded Projects Wireless Projects Have Been Awarded 4G/WiMAX Alaska, Hawaii, Oklahoma, Iowa 8
2 nd Round Roles Have Been Changed or Clarified NTIA – Middle Mile RUS – Last Mile* *RUS – Some Middle Mile Available to Established RUS Borrowers 9
BIP Second Round Changes OUT: 40% penetration rate Definition of Remote 50/50 RUS Grant/Loan Census Block Information Joint BTOP/BIP Application 10
BIP Second Round Changes IN: 5 Mbps (up+down) in < 50% service area 75/25 RUS Grant/Loan Split More Flexibility for RUS Administrator $10,000 per premises cost limit 11
BIP Second Round Changes Front-Loaded Applications more details needed up front (e.g. environmental questionnaire and engineering certification) Licenses and Agreements Must be Secured 12
BIP Second Round Changes Separate Satellite Program Broadband, CPE, Reduced Rates Technical Assistance Category Fund technical assistance for development of a regional broadband plan Rural Library Broadband Funds for cost of the last mile connections to the libraries 13
BIP Ineligible Areas 1 st Round Awarded Areas The service areas of awardees under the first round BIP/BTOP NOFA Existing RUS Telecom/Broadband Loans The existing service area of RUS borrowers where they provide broadband service will not be eligible 14
BTOP Second Round Changes Comprehensive Communities Approach Infrastructure projects that connect anchor institutions Eligibility Factors streamlined to determine eligibility of application At least 2 expert reviewers make review process more efficient Front-Loaded Application 15
Predictions Will All 1 st Round Awards Be Announced By The End of February? Will The 2 nd Round Application Window Be Extended Past March 15 th ? Will All Funds By Obligated Before September 30 th ? 16
Who’s Happy? Award Winners But for how long? Will loan documents, contract obligations or buildout issues frustrate them? Be Careful What You Wish For. Vendors and Construction Firms Not yet. Money has not started flowing. 17
Who’s Not Happy? Rejected Applicants White House Congress Tax Payers Exhausted Bureaucrats 18
Here We Go Again Deadline: 5:00 p.m. ET – March 15 th ( Submit Applications Electronically at: ( 19