An Open Letter to the Communications Community

To All Broadband Service Providers:

The upcoming year looks to be a busy one for rural broadband service providers. One year after the American Recovery and Reinvestment Act was first announced, the first round of awards from the Broadband Stimulus Program are beginning to roll out. Meanwhile, the NTIA and RUS have announced the availability of $4.8 billion for the second round.

Unfortunately, some in the service provider community did not have an overly positive experience during NOFA #1 and are hesitant to engage in NOFA #2. Some of you became justifiably frustrated with the criteria, expense and feedback process—certainly all valid criticisms. However, after careful review of the newly announced NOFA and the planned improvements in the application process, I believe that foregoing this opportunity would not be in your community’s best interest for the following reasons:

1. The BIP and BTOP programs promise to build broadband infrastructure and middle networks that can meet the real needs of rural consumers, businesses and communities. Separating the two programs allows BTOP to focus on building a comprehensive community infrastructure involving community “anchor institutions,” such as state and local governments, libraries, colleges/universities, and hospitals while RUS focuses on its historical core mission, building the rural last mile infrastructure. The two organizations have built a very workable network template that will enable the award winners to make the biggest impact with the available funding.
2. The RUS BIP will focus on traditional rural ILEC borrowers. NOFA #2 adjusts the BIP scoring system to bolster the applications of Title II companies. NOFA #1 awarded 5 points to existing Title II borrowers. The current NOFA has increased the weight of the metric and now offers 8 points to existing Title II borrowers. Furthermore, when analyzing the unserved project areas, the application now uses a percentage-based point system rather than the “households passed” point system. This is a sign that RUS will focus on areas of need rather than project size.
3. To further streamline the application process, it is recommended that all middle mile projects are directed to the NTIA for consideration under BTOP while RUS focuses on its traditional sphere of influence—last mile broadband infrastructure. However, RUS has stated that existing Title II borrowers can apply for middle mile funding through BIP. This means that RUS can work with those organizations it has worked with traditionally rather than with new entrants into the broadband market for both last mile and middle mile projects. This is one of the numerous steps taken to streamline the application process. RUS is encouraging NOFA #1 applicants that were rejected to apply again in NOFA #2, and, we believe, with good reason.

Service providers are at an inflection point and as companies of all types and sizes transition to broadband—and all the services and revenues it enables—the opportunity to accelerate that transition must be seized. I encourage all of you to take advantage of the funding available through the BIP and BTOP programs. When appropriate, Occam is prepared to assist you as you prepare your BIP or BTOP submissions. With clear vision, ambitious plans and intelligent navigation of the application process, I’m confident these programs can help rural service providers build world class broadband networks that tie into the global economy well in to the future.

Sincerely,

Bob Howard-Anderson
President and CEO