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Summary:

Today is the due date for municipalities and companies to apply via mail for a piece of the $4 billion being released in the first tranche of the broadband stimulus program, (those filing electronically get another week to get their applications through clogged servers). Roughly half […]

istock_000007177867xsmallToday is the due date for municipalities and companies to apply via mail for a piece of the $4 billion being released in the first tranche of the broadband stimulus program, (those filing electronically get another week to get their applications through clogged servers). Roughly half of the folks I’ve interviewed have decided to wait for the second and third rounds of funding before applying. Moreover, it appears that wireless is winning out over wireline.

Glenn S. Richards, a partner with Pillsbury Winthrop Shaw Pittman LLP, had eight clients that planned to apply as of last week, but said today that only three of them were able to pull together their submissions in time. Of them, one application is for sustainable adoption (by a wireless provider) and two are for broadband infrastructure projects (one wireless and one wireline). Others who counsel municipalities say their clients were hard-pressed to make this deadline as well, so will wait for the next rounds. The first round of grants has been a somewhat rushed process because the full $7.2 billion in stimulus funds is supposed to be allocated by September of next year. The rules governing the first round came out on July 1, giving applicants 45 days to get their applications together.

Of those that are applying, many are wireless companies — something Rich Wonders, vice president of strategic marketing for Alcatel-Lucent, had forecast after viewing the rules associated with the grant-making process. TowerStream, a WiMAX provider, confirmed that it’s applying for a grant, and most of Glenn’s eight interested companies are wireless providers. Which makes sense given that the rules don’t favor wireline providers trying to upgrade their lines in this round. As Wonders said last month,

“I believe the object is by end of first round to produce a map of the United States that shows the entire U.S…as having 768 kbps service,” Wonders said. “This round has less to do with advanced broadband such as fiber and fourth-generation wireless, and is more binary — a place either has coverage or it doesn’t.”

Additionally, most of the larger broadband providers aren’t planning to file, according to an article today in the Washington Post. I’ve emailed the National Telecommunications and Information Administration to get more information about what types of projects it’s seeing as well as the number of applications that have made it in so far. Though the computer troubles that have delayed electronic filing may make that number difficult to get.

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  1. Jen Anderson @ Harris Stratex Friday, August 14, 2009

    Good perspective on this, Stacey. We’re seeing a lot of interest on leveraging wireless for these projects from customers running the gamut—rural broadband, education, utility and public safety organizations—and we recently had a great chat with a few Gartner analysts that are hearing the same thing. Companies pursuing this funding have to adhere to fairly regimented project guidelines, so wireless technologies really are the most viable option to deliver on the deployment speed, low cost and public interest criteria. We’ve got some really useful resources at http://www.go-stimulus.com, including a white paper that is very relevant to this topic. Look forward to seeing some additional perspectives on this.

  2. Interesting article and update on the status of applications and funding. The interesting thing is the notion that there will be a rush on these funds in round two and three. Even with a September of 2010 deadline I think there will be an onslaught at the finish line, which if not prepared for, will result in funding disbursements well into 2011. We shall see.

  3. Wireless Cos Ask for $169.6M in Stimulus Bucks — Where’s Wireline? Wednesday, August 19, 2009

    [...] It’s joined by fellow wireless providers Yonder Media and Leap Wireless, the operator behind the Cricket brand of prepaid cell phone service, which on Monday filed for $8.6 million in broadband stimulus funding from the National Telecommunications and Information Authority’s program. So where are all the wireline providers? [...]

  4. Broadband Stimulus Update: A View from the Trenches Friday, August 21, 2009

    [...] As Stacey has noted, after being given just 45 days to get their applications together, many have opted to wait until the second and third tranches to hand them in. And of those she’s talked to that have submitted applications, the lion’s share have [...]

  5. With BendBroadband, HSPA+ Super-fast Wireless Broadband Arrives in the U.S. – GigaOM Wednesday, December 16, 2009

    [...] without doing expensive co-ax cable buildouts in less populated areas. The U.S. government recently began accepting applications for stimulus funds aimed at boosting broadband, and as Stacey [...]

  6. With BendBroadband, HSPA+ Super-fast Wireless Broadband Arrives in the U.S. – GigaOM Wednesday, December 16, 2009

    [...] without doing expensive co-ax cable buildouts in less populated areas. The U.S. government recently began accepting applications for stimulus funds aimed at boosting broadband, and as Stacey [...]

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