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The 2010 Broadband Stimulas didn’t help Wireless January 5, 2011

Posted by TelUS Consulting Services in Wireless catagory.
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In January, it was the talk of the industry. The U.S. government was poised to issue the bulk of the $7.2 billion in grants and loans to push affordable broadband services into the rural areas of the country. And wireless broadband was expected to be a shoo-in for the bulk of the awards.

The entire process, however, turned out to be a confusing and painful one. The National Telecommunications and Information Administration, along with the Department of Agriculture’s Rural Utilities Service, were inundated with applications. The applications were hundreds of pages long, key terms such as what constituted “underserved” and “unserved” broadband areas weren’t fully defined and the U.S. government made award determinations despite the lack of mapping to indicate where broadband coverage was in the first place.

New rules for the second round of awards brought a bit more clarity by offering an opportunity for reconsideration of requests to provide viable applications with every change for funding. RUS also instituted a second application review process that would allow applicants to adjust their applications.

In the end, however, while the majority of stimulus applications were last-mile projects, more conservative fiber-based middle-mile projects became the favorite for funding. As such, significantly fewer than expected last-mile projects were granted awards–a big disappointment to many wireless applicants who painstakingly crafted very detailed and creative applications.

 

Despite all this, there are several major last mile efforts taking place now that 2011 is here. Watch the right of way owners such as railroads, power companies and the like. Also watch for a shift in municipality rights of way.

 

Joe Buck, N.C.E.

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