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Companies seeking some of the $7.2 billion in federal money to bring broadband to underserved areas are rushing to meet an Aug. 14 deadline
ByRachael King
Getty Images
It's crunch time at International Broadband Electric Communications (IBEC). The Huntsville (Ala.) telecom provider has until Aug. 14 to complete an application for part of the $4 billion that Uncle Sam is spreading around to make high-speed Internet connections more widely available. To meet the deadline, IBEC Chief Executive Scott Lee has six of his 54-person staff working overtime and weekends filling out the paperwork. "It's not an easy application. It's a lot of work in a short period of time," Lee says. Yet, it's "worth the effort."
No kidding. If successful, IBEC stands to walk away with $80 million to $100 million to help it build broadband networks in rural areas. In all, the economic stimulus legislation known as the American Recovery & Reinvestment Act of 2009 set aside $7.2 billion in grants and loans to encourage the installation of broadband networks in areas with little or no access to it, from hard-to-reach hinterlands to low-income inner-city neighborhoods. The Obama Administration considers access to high-speed Internet connections a critical way of bridging socioeconomic gaps, creating jobs, and spurring economic growth.
The program isn't without its critics. Some say it doesn't go far enough in bringing Web access to the most remote areas, while others fret the government hasn't left itself a big enough window for disbursing so large a sum. Applicants, meantime, are racing to meet the Aug. 14 deadline, though some say the government wants more detail than they can readily provide.
Just over half the total is up for grabs now. The official notice of funding was posted on July 1, and all awards must be made by Sept. 30, 2010, a mere 15 months later. To assist applicants, the two federal agencies responsible for distributing the funds held a flurry of 10 informational workshops from Birmingham, Ala., to Billings, Mont., last month. Over a 17-day stretch, representatives of the Agriculture Dept.'s Rural Utilities Service (RUS) and the Commerce Dept.'s National Telecommunications Information Administration coached companies, state agencies, universities, municipalities, and others on how to properly complete paperwork. Even an event in Lonoke, Ark., a town with an estimated population of 4,552, was packed to the rafters, says David Villano, assistant administrator for USDA Rural Development regarding the stimulus funds.
Mapping Capability
Some applicants need all the help they can get. The government asks for detailed proof a particular area lacks the cables and other equipment needed to provide fast Web access?and that service hasn't been available for years. "The companies that are going to benefit from this initiative are going to be those that have the best mapping in place," says Tim Dowd, president and CEO of INPUT, a consulting firm that helps companies find and win business.
Here's the rub. The companies with the most data on broadband availability include the incumbent large providers, such as Comcast (CMCSA), AT&T (T), and Verizon Communications (VZ). Those companies have historically been reluctant to give up mapping data they consider proprietary and competitive, and it's difficult for many smaller providers to get information elsewhere. Representatives of Comcast, AT&T, and Verizon, the three largest broadband providers, didn't immediately respond to requests for comment.
John Banks, senior vice-president at USTelecom, an industry trade group, notes that the government has already allocated money for broadband availability maps, and that many states, including California, have drawn up their own maps.
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ByRachael King
Getty ImagesIt's crunch time at International Broadband Electric Communications (IBEC). The Huntsville (Ala.) telecom provider has until Aug. 14 to complete an application for part of the $4 billion that Uncle Sam is spreading around to make high-speed Internet connections more widely available. To meet the deadline, IBEC Chief Executive Scott Lee has six of his 54-person staff working overtime and weekends filling out the paperwork. "It's not an easy application. It's a lot of work in a short period of time," Lee says. Yet, it's "worth the effort."
No kidding. If successful, IBEC stands to walk away with $80 million to $100 million to help it build broadband networks in rural areas. In all, the economic stimulus legislation known as the American Recovery & Reinvestment Act of 2009 set aside $7.2 billion in grants and loans to encourage the installation of broadband networks in areas with little or no access to it, from hard-to-reach hinterlands to low-income inner-city neighborhoods. The Obama Administration considers access to high-speed Internet connections a critical way of bridging socioeconomic gaps, creating jobs, and spurring economic growth.
The program isn't without its critics. Some say it doesn't go far enough in bringing Web access to the most remote areas, while others fret the government hasn't left itself a big enough window for disbursing so large a sum. Applicants, meantime, are racing to meet the Aug. 14 deadline, though some say the government wants more detail than they can readily provide.
Just over half the total is up for grabs now. The official notice of funding was posted on July 1, and all awards must be made by Sept. 30, 2010, a mere 15 months later. To assist applicants, the two federal agencies responsible for distributing the funds held a flurry of 10 informational workshops from Birmingham, Ala., to Billings, Mont., last month. Over a 17-day stretch, representatives of the Agriculture Dept.'s Rural Utilities Service (RUS) and the Commerce Dept.'s National Telecommunications Information Administration coached companies, state agencies, universities, municipalities, and others on how to properly complete paperwork. Even an event in Lonoke, Ark., a town with an estimated population of 4,552, was packed to the rafters, says David Villano, assistant administrator for USDA Rural Development regarding the stimulus funds.
Mapping Capability
Some applicants need all the help they can get. The government asks for detailed proof a particular area lacks the cables and other equipment needed to provide fast Web access?and that service hasn't been available for years. "The companies that are going to benefit from this initiative are going to be those that have the best mapping in place," says Tim Dowd, president and CEO of INPUT, a consulting firm that helps companies find and win business.
Here's the rub. The companies with the most data on broadband availability include the incumbent large providers, such as Comcast (CMCSA), AT&T (T), and Verizon Communications (VZ). Those companies have historically been reluctant to give up mapping data they consider proprietary and competitive, and it's difficult for many smaller providers to get information elsewhere. Representatives of Comcast, AT&T, and Verizon, the three largest broadband providers, didn't immediately respond to requests for comment.
John Banks, senior vice-president at USTelecom, an industry trade group, notes that the government has already allocated money for broadband availability maps, and that many states, including California, have drawn up their own maps.
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