In a Feb. 2 e-lert, JSI informed clients that there could be potential opportunities to obtain funds for broadband deployment in legislation that was making its way through Congress. The broadband provisions in that legislation are part of the economic stimulus package, known as the American Recovery & Reinvestment Act (ARRA), that has passed both houses of Congress and signed by President Obama today.

Below, JSI summarizes what we have gleaned from various trade press reports. More detailed analyses of the possible opportunities the package may provide clients will be forthcoming. In the meantime, if you have questions or would like to be added to a list of clients that have requested our regular updates as the programs are implemented, please contact Kim Waldvogel (kwaldvogel@jsitel.com) in JSI's Maryland office, at 301-459-7590.

Summary of the Legislation

The broadband provisions of ARRA include a total of $7.2 billion for broadband deployment funding in two different programs. Projects funded by one program will not be eligible for funding by the other. (JSI notes that tax credits for broadband deployment, which were a part of the Senate version of the legislation, were eliminated before final passage of the legislation).

1. NTIA, Broadband Technologies Opportunities Program, $4.7 Billion

• Administered by the National Telecommunications and Information Administration (NTIA), which is under the Assistant Secretary for Communications and Information in the Department of Commerce, in consultation with the FCC;
• Provides funds for broadband service in unserved areas and improved access to broadband service in underserved areas;
• Funds also allocated for schools, libraries, medical, etc., for broadband mapping and for audits of the use of the broadband funds;
• All funds to be awarded before the end-of-year 2010, with projects to be completed within two years of an award;
• Matching funds of at least 20 percent of the project are required;
• Eligible entities include states, Indian tribes, non-profit organizations, any other entity found to be in the public interest, including broadband infrastructure providers;
• NTIA must work with the FCC in setting "nondiscrimination and network interconnection obligations" for grant recipients; and 
• NTIA is authorized but not required to consult with state officials to identify unserved and underserved areas and allocate funding.
  

2. Rural Utilities Service (RUS), $2.5 Billion

• Administered by the U.S. Department of Agriculture as part of the RUS Rural Development Telecommunications Program, which includes broadband;
• Funds are in the form of loans, loan guarantees, and grants;
• 75 percent of area served by a project must be "a rural area without sufficient access to high-speed broadband services"; and
• Priority will be given to projects that:
  • deliver a choice of more than one service provider,
    
  • serve the highest proportion of residents without access to broadband, and
  • include existing or former RUS borrowers.