NTIA and RUS release rules for first broadband stimulus grants

The National Telecommunications and Information Administration (NTIA) and the Rural Utilities Service (RUS) released the rules for disbursement of the broadband stimulus funds.

The regulations will apply to the first of three grant cycles and total up to $4 billion of the $7.2 billon allocated in the American Recovery and Reinvestment Act.

NTIA and RUS followed the economic stimulus plan's mandate to specifically address closing the digital divide. The grant approval process places a high premium on projects in rural and urban unserved and underseved areas.

The funding applies to three programs, the Broadband Technology Opportunities Program (BTOP), the RUS Broadband Initiatives Program and the State Broadband Data and Development Program.

BTOP funds will be awarded for three types of projects:

• Broadband Infrastructure improvement projects, which will "deliver broadband service through Last Mile or Middle Mile facilities to unserved and underserved areas (up to $1.2 billion).
• Projects that increase the capacity of public computer centers at public libraries, community colleges and other public buildings (up to $50 million).
• Innovative projects that promote broadband demand, education, awareness, training, access, equipment or support in vulnerable populations will be funded under the sustainable broadband adoption category (up to $150 million).

The State Broadband Data and Development Program funds projects that are designed to synthesize information about the level of broadband "availability, technology, speed, infrastructure and average revenue per user," in a given area. Only one entity per state is allowed to apply for funding and they must commit to updating the map twice a year for the next five years.

The Rural Utilities Service's Broadband Initiatives Program will use $2 billion to provide grants and up to $7 billion in loans to expand broadband service in rural areas for projects that provide access to high speed connections and facilitate economic development. The RUS rules are given four objectives:

1. Fund projects that will support rural economic development and job creation beyond the immediate construction and operation of the broadband facilities;
2. Seventy five percent of more of the funds go towards rural areas;
3. The projects will be completed in coordination with the NTIA and the FCC; and,
4. Appropriate monitoring and servicing of the funds are established.

The rules defined terms such as broadband, unserved and underserved -- a topic of much debate in the broadband hearings held earlier this year. The definition for broadband remained the same as the one that the FCC uses - 768 kbps download and 200 kbps upload. Proposals for projects that provide higher speeds will be given priority over lower speed projects, according to the rules.

Unserved is defined as:

"An area, composed of one or more contiguous census blocks where at least 90 percent of households in the proposed funded service area lack access to faculties-based, terrestrial broadband service, either fixed or mobile, at the minimum-broadband speed."

The rules defined underserved in two parts; one way for Last Mile Projects and another for Middle Mile Projects:

"Last Mile Projects - an area composed of one or more contiguous census blocks where at least one of the following is met: 1) no more than 50 percent of households in the proposed funded service area have access to facilities-based, terrestrial broadband service at greater than the minimum broadband speed; 2) no fixed or mobile broadband service provider advertises broadband speeds of at least 3 Mbps downstream in the proposed funded service area; or 3) the rate of broadband subscribership for the proposed service area is 40 percent of households or less.

Middle Mile Projects - an area composed of one or more contiguous census blocks where one interconnection point terminates in a census block area(s) that qualifies as unserved or underserved for Last Mile projects."

All projects must adhere to the FCC's open Internet principles, "not favor some lawful applications and content over others," not be an entirely private closed network, or use any network management policies.

Applications for both programs will be accepted between July 14 and August 14 and will be awarded in early November. Funds will ultimately become available this December.

Economic stimulus package a victory for Speed Matters (Speed Matters)

Bridging the Digital Divide (Speed Matters)

Broadband Technology Opportunities Program Notice of Funds Availability (BroadbandUSA)

Rural Utilities Service Broadband Initiatives Program (BroadbandUSA)

State Broadband Data and Development Program Notice of Funds Availability (BroadbandUSA)

Government Makes $4 Billion ‘Down Payment’ on Project to Expand Broadband (Washington Post)