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Broadband Stimulus Round 2 Gold Rush Fever!

Broadband Stimulus Round 2 Gold Rush Fever!. 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. One Year Ago.

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Broadband Stimulus Round 2 Gold Rush Fever!

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  1. Broadband StimulusRound 2 Gold Rush Fever!

  2. 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

  3. 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)

  4. 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)

  5. Today Numerous Delays Dec. 2009: First Awards Finally Announced Less than 1/4 of $7.2 Committed

  6. Winter of Our Discontent Question: What Took So Long? • Applicants • Congress • White House • Tax Payers • Construction Companies • Vendors…and the list goes on…

  7. 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

  8. Some Good News Over 30 States Awarded Projects Wireless Projects Have Been Awarded • 4G/WiMAX • Alaska, Hawaii, Oklahoma, Iowa

  9. 2nd Round Roles Have Been Changed or Clarified • NTIA – Middle Mile • RUS – Last Mile* *RUS – Some Middle Mile Available to Established RUS Borrowers

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

  11. 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

  12. 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

  13. 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

  14. BIP Ineligible Areas 1stRound 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

  15. 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

  16. Predictions Will 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?

  17. 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.

  18. Who’s Not Happy? • Rejected Applicants • White House • Congress • Tax Payers • Exhausted Bureaucrats

  19. Here We Go Again • Deadline: 5:00 p.m. ET – March 15th( • Submit Applications Electronically at: (www.broadbandusa.gov)

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