U.S. readies broadband stimulus details

SAN JOSE, Calif. — U.S. government agencies may release by the end of June guidelines for applying for the first round of a total of $7.5 billion in stimulus funds to extend the reach of broadband networks. Carriers and communications systems makers are gearing up to apply for the grants and loans, some of which will be awarded as early as September.

"It will be an intense three months," said Kevin Suitor, vice president of marketing and business development at Redline Communications Inc. (Markham, Ontario), a maker of WiMax systems. "We believe the stimulus funding in the U.S. and other programs around the world will provide a bump to WiMax adoption," he added.

The stimulus funds will be agnostic about the technology used. Their focus will be on deploying or expanding broadband service, typically to rural areas.

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Redline has been pro-active in pursuing its share of the broadband initiative. The company has assembled a team of people who can write grants, design networks and work out financial details needed for business plans. It has also hosted Web seminars educating systems engineers and carriers on ways to get the most out of the government package.

"We've been getting about six carriers ready to submit applications so far," said Suitor.

Many applications are expected to target networks that cost about $10 million to deploy and cover an area of half a million homes in hopes of getting 50,000 to 100,000 subscribers. A survey of four carriers by the Yankee Group suggested many providers will use 700 MHz, 2.3 GHz or 2.5 GHz wireless services to target the 20 poorest U.S. states.

The process of awarding the funds is relatively complex, involving at least two government agencies and multiple programs. A so-called Notice of Funds Availability (NOFA) expected as early as June 26 could be the first of three calls for proposals, said Paul Sinderbrand, an attorney tracking the process with tech law firm Wilkinson Barker Knauer, LLP (Washington D.C.)

"To some extent this is a game, and when we see the criteria with the first NOFAs we will better know how to play the game to get the highest scores," Sinderbrand said.