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Broadband StimulusRound 2

Gold Rush Fever!

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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

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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)

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1st 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)

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Today

Numerous Delays

Dec. 2009: First Awards Finally Announced

Less than 1/4 of $7.2 Committed

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Winter of Our Discontent

Question: What Took So Long?• Applicants• Congress• White House• Tax Payers• Construction Companies• Vendors…and the list goes on…

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1st 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

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Some Good News

Over 30 States Awarded Projects

Wireless Projects Have Been Awarded• 4G/WiMAX• Alaska, Hawaii, Oklahoma, Iowa

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2nd Round

Roles Have Been Changed or Clarified• NTIA – Middle Mile• RUS – Last Mile*

*RUS – Some Middle Mile Available to Established RUS Borrowers

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BIP Second Round Changes

OUT:• 40% penetration rate • Definition of Remote• 50/50 RUS Grant/Loan• Census Block Information• Joint BTOP/BIP Application

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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

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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

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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

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BIP Ineligible Areas

1st 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

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BTOP Second Round ChangesComprehensive 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

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PredictionsWill All 1st Round Awards Be Announced By The

End of February?

Will The 2nd Round Application Window Be Extended Past March 15th?

Will All Funds By Obligated Before September 30th?

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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.

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Who’s Not Happy?

• Rejected Applicants• White House• Congress• Tax Payers• Exhausted Bureaucrats

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Here We Go Again

• Deadline: 5:00 p.m. ET – March 15th (• Submit Applications Electronically at: (

www.broadbandusa.gov)