Tuesday, July 21, 2009

Memo to RUS and NTIA: Proposed revisions for broadband stimulus funding rules

The two agencies administering rules governing the disbursement of $7.2 billion of grants and loans for allocated for broadband infrastructure construction in the American Recovery and Reinvestment Act -- the Rural Utilities Service and the National Telecommunications and Information Administration -- should revise the guidelines as follows:

1. Liberalize the rules to encourage consumer telecom cooperatives, recession ravaged local governments and small local fiber providers to propose projects. While the guidelines for the first round of applications issued July 1 allow up to five percent of application preparation costs (e.g. infrastructure engineering, development of minimum 5-year business plan) to be awarded in grants and/or loans, only projects accepted for funding can get these substantial costs credited back. This creates sizable up front risk and funding hurdles that discourage infrastructure builds by non-incumbent entities and providers. Revise the guidelines to include loan guarantees for engineering and business planning for projects that demonstrate good faith, diligent planning work. Doing so will encourage more projects and also help weed out those that seem like a good idea but won't pencil out.

2. Don't require non incumbent providers to be census takers and go door or door to document the level of broadband availability and adoption in census blocks comprising their proposed projects. That's a job for the Census Bureau and introduces cost and delay that are contrary to the stimulus funding goal of rapid deployment of broadband infrastructure.

3. Lose the broadband black hole preservation provision in the current rules that allows incumbent providers to challenge proposed projects. Also trash a provision in the definition of "underserved" areas deeming these areas as such if no wireless provider merely advertises service with at least 3MBs download connectivity. Both of these provisions will only introduce delay and may lead to litigation that's at cross purposes with the speedy build out of broadband infrastructure.

Minnesota municipalities don't like broadband stimulus rules

The Minneapolis StarTribune.com reports Minnesota municipalities are having second thoughts about applying for some of the $7.2 billion in taxpayer subsidized grants and loans allocated in the federal economic stimulus package for broadband infrastructure construction.

The reason is the 121 pages of guidelines issued July 1 by the two federal agencies that will review and determine which projects get funded require applicants to conduct door to door censuses of their proposed project areas to determine if the census blocks contained in their contemplated project areas qualify for funding under the rules' definitions of what constitutes an unserved or underserved census block. Skipping this step could jeopardize a project since it could be rejected outright by the agencies for lack of required documentation of need or challenged by incumbent providers as permitted under the guidelines.

An excerpt from the article:

The problem, as city and county broadband planners see it, has less to do with technology than with the sheer legwork required to create an acceptable proposal.

Applicants must prove that all the areas they propose to serve would meet a narrow federal definition of being underserved -- that 50 percent or more households in the area lack broadband access, or that fewer than 40 percent of the households already subscribe to broadband. That puts the burden on cities and counties to undertake expensive and time-consuming door-to-door surveys, because telephone and cable companies don't reveal which areas they serve.

The Minnesota munis' concerns are understandable. They don't see themselves as being in the census business. Conducting a door to door survey is a costly and time consuming task that means many prospective applicants have concluded there's no way they can submit project applications to the agencies by the Aug. 14 deadline for the first round of funding.

FCC broadband czar underwhelmed by public comments on U.S. broadband policy

MultiChannel News reports the Federal Communications Commission's broadband czar Blair Levin is underwhelmed by the quality of comments the agency has received in response to its call for public input for a national broadband policy. Congress set a February 2010 deadline for the policy as part of the American Recovery and Reinvestment Act enacted earlier this year.

The gist of Levin's complaint is the comments are overly self serving and don't help the FCC shape a broadband policy that will further the Obama administration's goal of making broadband accessible to all American homes and businesses.

That's hardly surprising given the inherent tension between the public's growing and nearly insatiable demand for more and faster broadband and the private telco/cable industry's duopolistic control over who gets service and at what speed and price -- and only provides it when it's in their and not necessarily in their customers' interest.

Implicit in this tension is the evolution of the U.S. telecommunications infrastructure and services away from the closed, proprietary single purpose systems of the past that provided basic phone service and cable. The future is locally owned and operated open access-based fiber infrastructure to the premises that can deliver various advanced Internet-protocol-based services to business, government and residential consumers with bandwidth to spare. In that regard, Levin's FCC is likely getting variations on the theme "fight the future" from a telco/cable duopoly that fears it.

Wednesday, July 15, 2009

App Rising: Ten ways broadband stimulus rules fail America

From App-Rising's perspective, the Notice of Funds Availability (NOFA) announced July 1 for the first round of $7.2 billion of grants and loan subsidies for U.S. broadband telecommunications infrastructure falls short of the goal of Obama administration and Congress in authorizing the funds as part of the American Recovery and Reinvestment Act. Some key excerpts:

In large part this stimulus is business as usual for America's broadband policy, or lack thereof. We're continuing to muck around, shuffling our feet when the rest of the world is racing forward. It's not just that this NOFA isn't aspirational enough, it's that it does seem to be aspiring to anything at all. There's no ultimate goal for what it's setting out to achieve other than getting some people some broadband. And there's seemingly little being done to even use this as a learning experience that we can build from and help guide future investments. It feels like NTIA and RUS just took the safest route, followed the same steps that have failed us in the past, and at best only marginally improved the approach. Because of this I can't help but feel pessimistic about what the ultimate impact of the broadband stimulus will be.

There are a host of truly shovel-ready, truly innovative, true testbed showcase projects for us to be supporting through this broadband stimulus. But based on how things are looking so far, I can't help but feel like this NOFA is already a massive failure and the money hasn't even gone out the door yet.

I agree the rules governing this first NOFA issued two weeks ago create too much opportunity for incumbent providers to delay proposed projects in order to maintain their territorial hegemony that is a hallmark of America's privately built and operated telecommunications infrastructure.

On the other hand, App-Rising sees this first NOFA as all encompassing broadband policy. It is not. The broadband provisions of the economic stimulus legislation call for the creation of an omnibus U.S. broadband policy by Febuary 2010. Plus the funding allocation was described by Obama administration officials as a "down payment" on a badly needed upgrade of the nation's telecommunications infrastructure. Finally, there's a good chance the rules of the first NOFA will be revised based on complaints such as these in the second and third rounds of funding later this year and early 2010.

Tuesday, July 14, 2009

California PUC approves subsidy for fixed WISP build offering 14Mbs symmetric service

The California Public Utilities Commission announced July 9 that it approved a 40 percent subsidy totaling $2.8 million from its California Advanced Services Fund for fixed terrestrial wireless infrastructure to provide broadband connectivity to more than 14,000 unserved premises in Alpine, Amador, Calaveras, Tuolumne, and Mariposa counties.

According to the CPUC resolution approving the project, it will be built over a 20-month period by Mother Lode Broadband and will leverage a regional network of existing mobile cellular towers reinforced with "expanded backhaul" -- most likely fiber.

The proposed throughput will blow existing WISPs -- both mobile 3G cellular as well as fixed premises providers -- clean out of the water. It's on a business class scale providing symmetric connectivity of "up to" 14 Mbs. There's no word on latency and Mother Lode Broadband is mum on what protocol -- WiMAX is a likely possibility -- that it plans to use. In addition, the CPUC resolution is silent on the technology that will make service this scale possible, only revealing it will employ "high capacity licensed spectrum."

Only time will tell if this is for real or simply more wireless vaporware. With the deployment planned over 20 months, there is a relatively large amount of that -- and probably too much for those 14,000 premises that needed broadband 10 years ago and are still stuck on dialup or sucking a satellite. "I'll believe the speeds when I see them," one skeptical Northern California industry insider tells me.

Fed up with "depressing" service, Virginia county forms broadband authority

BEDFORD — After several months of consideration, the Bedford County Board of Supervisors narrowly voted Monday to form a broadband authority.

The authority, which was enacted by a 4-3 vote after a public hearing, is a legal entity that can contract directly with private providers to deliver broadband access to residents and businesses. The seven-member board would serve as the authority and could appoint an advisory committee for technical assistance.

“We do envision this as a public-private partnership,” Assistant County Administrator Frank Rogers said of the authority’s purpose. He said the county “is not looking into the business of being a broadband provider” but rather a vehicle to help facilitate service to parts of the county that are not served or underserved.

Monday, July 13, 2009

California issues updated "unclassified" state broadband availability maps

The California Public Utilities Commission has published updated versions of maps of broadband availability in the Golden State that were issued in early 2008 by Gov. Arnold Schwarzenegger's California Broadband Task Force.

There are two versions of the maps: "classified" versions accessible only to approved providers and "unclassified" maps that are publicly available and published online as .pdf files. The secret maps -- classified at the insistence of incumbent providers who don't want the public or potential competitors knowing exactly what they are providing (and more importantly, not providing) and where -- purportedly reveal street address level broadband availability organized by census block. The unclassified public maps by comparison show only the view from 60,000 feet and are sanitized via rasterization and the omission of key highway and road identifiers and town markers. This renders them nearly inscrutable to outsiders and consumers -- some of whom complain the maps exaggerate the boundaries of where broadband availabilty truly exists.

Notably, the two federal agencies administering the distribution of $7.2 billion of grant and loan subsidies to faciltiate the build out of broadband telecommunications infrastrucutre -- the Dept. of Agriculture's Rural Utilities Service (RUS) and the Commerce Department's National Telecommunications and Information Administration (NTIA) -- issued rules last week for the first round of funding requiring proposed projects include service area maps delineated by census block and posted on the federal government's Broadband Stimulus Portal.

When compared with the California maps, these newly created maps of proposed project areas may show where the broadband black holes really exist in a way the California maps do not.