NTIA:
Emailed to: email to BTOP@ntia. March 18, 2009.
Comments made by
Steve Smith
Chase 3000
Imperial, NE, 69033
308 882 3000; cell 308 883 3000
Internet Service Provider since 1996.
Table of Contents
Executive Summary – highlighting the two answers we most want to emphasize.
NTIA’s 15 primary questions and 52 sub-questions, in order
RUS’ 5 primary questions and 10 sub-questions, in order
• NTIA/RUS primary question in black.
• NTIA/RUS specific question in green.
• Chase 3000 answer in blue.
Executive Summary
Chase 3000 has attempted to answer all of the questions asked by NTIA and RUS. However, the two answers we would like to emphasize the most regard the definitions of unserved and underserved as well as the criteria for judging applications. We highlight our answers to these questions here in the executive summary.
Definition of unserved and underserved. For a more detailed answer, please see our comments under 13a.
a. For purposes of the BTOP, how should NTIA, in consultation with the FCC, define the terms “unserved area” and “underserved area?”
The numbers refer to points. If your target area meets the definition, then you get the points. The points are cumulative.
Unserved –
• 10 Any area with no provider providing more than 1 Mb down and 512 kbps up. (prorated to the portion of the homes in the target in this category)
Underserved – Any of the following with varying point scale depending on how many of the elements are met.
• 3 To maintain computability with the FFC broadband statement, any area with only one provider of service would be considered underserved.
• 1 Cannot receive symmetrical broadband service.
• 3 Receives average peak time bandwidth of less than 2d/1u Mb .
• 2 Receives minimum peak time bandwidth of less than 5d/1u Mb .
For example, if an applicant area has only one provider currently providing asymmetrical service of 3 mbps down and 1 mbps up and only does so within the city limits and 50% of the homes in the census tract or zipcode qualify as unserved then the unserved/underserved score would be
3 pts for single provider
1 pts for asymmetrical service
2 pts for less than 5 down but more than 2 up.
5 pts for more than 25% of the homes in the unserved category. (50% of 10)
So a total of 11 points on the unserved/underserved scale.
Within many census tracts and zipcodes, there will be a portion of the population that is served, underserved, and unserved. Hence, NTIA should permit an applicant to define the area to be served by the application however the applicant with a familiarity with the area feels is best. But, the applicant should also be required to report what services are available within the same zip code and census tracts as the application, even if the applicant does not propose delivering service to those other areas. The applicant should be required to map the unserved and underserved areas with all zipcode or census tracts the application covers, even if not all of the area is to be covered. This will help NTIA in its mapping project and will also highlight not only who the applicant is trying to help but also who they are ignoring.
b. How should the BTOP define “broadband service?”
(1) Should the BTOP establish threshold transmission speeds for purposes of analyzing whether an area is “unserved” or “underserved” and prioritizing grant awards? Should thresholds be rigid or flexible?
Thresholds should be flexible. If two applicants are competing within a service area for a grant or loan, the one offering the faster service should receive higher scores. Higher scores for symmetrical service. Thresholds could be based on Homes Per Square Mile (hpsm). 500 hpsm - 50 Mbs.
Suggested criteria and criteria weights. See NTIA 4b. for a more detailed list and explanation.
b. What should the weighting of these criteria be in determining consideration for grant and loan awards?
• 20% No broadband in an area, (at least 5/1 MB);
• 20% Lack of competition in an area;
• 20% Applicant providing universal service throughout an area (census block?)
• 5% Average speed at peak usage being provided to the end user;
• 5% Population loss over the last twenty years;
• 5% Unemployment rate;
• 5% Financial ability of the applicant to complete project;
• 5% Sustainability of project;
• 20% Other factors – see 4b. for more detailed list.
NTIA:
1. The Purposes of the Grant Program: Section 6001 of the Recovery Act establishes five purposes for the BTOP grant program.
a. Should a certain percentage of grant funds be apportioned to each category?
No hard and fast percentage should be used. NTIA should use its best judgment to fairly apportion the funds.
b. Should applicants be encouraged to address more than one purpose?
Encouraged, yes; but, it should not be required.
c. How should the BTOP leverage or respond to the other broadband-related portions of the Recovery Act, including the United States Department of Agriculture (USDA) grants and loans program as well as the portions of the Recovery Act that address smart grids, health information technology, education, and transportation infrastructure?
Projects that include these programs should receive more consideration. However, these should be included as separate aspects of one’s grant and have community participation (i.e. local hospitals would apply for IT, Smart Grids would be the local utility company, and all would come under the umbrella of the application). The applicant should identify other complementary projects that can share costs, but NTIA should not make the approval of the IT portion contingent on other agencies or projects.
2. The Role of the States: The Recovery Act states that NTIA may consult the States (including the District of Columbia, territories, and possessions) with respect to various aspects of the BTOP. The Recovery Act also requires that, to the extent practical, the BTOP award at least one grant to every State.
a. How should the grant program consider State priorities in awarding grants?
Most State Broadband Task Forces or regulatory agencies are dominated by one segment of the communications industry. Permit the State to highlight areas of need, but directly solicit input from a variety of State sources. There are a number of broadband advocates that are not tied directly to any one technology or industry. Provide public notice that the NTIA will consider input from any source that wants to propose a Statewide broadband strategy and priority list.
b. What is the appropriate role for States in selecting projects for funding?
State involvement should be kept to a minimum, due to heavy political influence at the State level by certain industries. A State might provide a letter of support or endorsement for projects they favor. This might give a few points toward NTIA scoring of the application.
3. Eligible Grant Recipients: The Recovery Act establishes entities that are eligible for a grant
under the program. The Recovery Act requires NTIA to determine by rule whether it is in the public interest that entities other than those listed in Section 6001(e)(1)(A) and (B) should be eligible for grant awards.
a. What standard should NTIA apply to determine whether it is in the public interest that entities other than those described in Section 6001(e) should be eligible for grant awards?
Priority should be given to entities that have experience in providing broadband service, which can be determined by those that complete the FCC required form 477. If no existing broadband provider exists for an area or is unwilling to provide advanced services, then NTIA might consider any organization that proposes to provide service in such an area.
4. Establishing Selection Criteria for Grant Awards: The Recovery Act establishes several considerations for awarding grants under the BTOP. In addition to these considerations, NTIA may consider other priorities in selecting competitive grants.
a. What factors should NTIA consider in establishing selection criteria for grant awards? How can NTIA determine that a Federal funding need exists and that private investment is not displaced? How should the long-term feasibility of the investment be judged?
• No broadband in an area, (at least 5/1 MB);
• Lack of competition in an area;
• Applicant providing universal service throughout an area (census block?)
• Minimum or average speed at peak usage being provided to the end user;
• Population loss over the last twenty years;
• Unemployment rate;
• Financial ability of the applicant to complete project;
• Sustainability of project;
• Immediate Jobs created (per 1,000 population);
• Local vs State income;
• Long term jobs created (per 1,000 population);
• Net neutral (if other than wireless)
• Cost to build per MB per home;
• End user costs;
• Form 477 completion;
• Private money leveraged (less than 80% from NTIA);
• Population density;
• Small and disadvantaged business;
• State supported;
• Combined with other projects;
• Percentage of people with broadband outside of the city limits;
• Subsidies received in the past;
• Technology used;
Long term viability of a project should consider the cost of providing the service as compared to the estimated end user price vs expected end user adoption rate at the specified price.
b. What should the weighting of these criteria be in determining consideration for grant and loan awards?
• 20% No broadband in an area, (at least 5/1 MB);
• 20% Lack of competition in an area;
• 20% Applicant providing universal service throughout an area (census block?)
• 5% Minimum speed at peak usage being provided to the end user;
• 5% Population loss over the last twenty years;
• 5% Unemployment rate;
• 5% Financial ability of the applicant to complete project;
• 5% Sustainability of project;
• 2% Immediate Jobs created (per 1,000 population);
• 2% Local vs State income;
• 2% Long term jobs created (per 1,000 population);
• 2% Net neutral (if other than wireless)
• 1% Cost to build per MB per home;
• 1% End user costs;
• 1% Form 477 completion;
• 1% Private money leveraged (less than 80% from NTIA);
• 1% Population density;
• 1% Small and disadvantaged business;
• 1% State supported;
• 0% Combined with other projects;
• 0% Percentage of people with broadband outside of the city limits;
• 0% Subsidies received in the past;
• 0% Technology used;
c. How should the BTOP prioritize proposals that serve underserved or unserved areas? Should the BTOP consider USDA broadband grant awards and loans in establishing these priorities?
Priority should be given to projects that will create backhaul infrastructure that will permit additional communities to be added. For example, if a project is in community Z and the necessary bandwidth to serve the community is available from a tier 2 provider in community Q, then by funding this project everyone between community Q and Z will benefit by the backhaul infrastructure that is created. This will lower the costs of other projects funded privately and would leverage the grant federal money to the greatest extent possible. So if the choice were between a project in community U vs Z, then Z might be preferred because it created more backhaul and leveraged the federal money the most.
d. Should priority be given to proposals that leverage other Recovery Act projects?
Coordinating multiple agency projects should be done at the agency level, as the applicant will not be able to control the timing to permit multiple focus projects on schedule.
e. Should priority be given to proposals that address several purposes, serve several of the populations identified in the Recovery Act, or provide service to different types of areas?
Whatever provides the most efficient and effective use of the money should be encouraged.
f. What factors should be given priority in determining whether proposals will encourage sustainable adoption of broadband service?
End User Price, community education, and proven track record of the applicant. Affordable prices for the end user will increase participation. While most people are able to know how to effectively use broadband, many need assistance in identifying how broadband can be best used. And, many need to be inspired with new ideas so they can create jobs for themselves. A strong community support system will help increase broadband adoption and sustainability.
g. Should the fact that different technologies can provide different service characteristics, such as speed and use of dedicated or shared links, be considered given the statute’s direction that, to the extent practicable, the purposes of the statute should be promoted in a technologically neutral fashion?
The technology that is best for the end user should be the primary determinant with a formula that reflects that if the cost exceeds $x per possible end user ($2,500?), a different technology with lower bandwidth ability may be necessary. No one technology should be preferred over another, except in that it gives the end user the best possible choice within some financial framework.
h. What role, if any, should retail price play in the grant program?
Some projects will cost much more than others to deploy. Some areas are far from a Tier 1 or 2 provider and the recurring costs will be much greater for bandwidth. In these cases, the higher retail cost is a sign of greater need for federal assistance. Cost alone should not be the determinant; however, any proposal should be reviewed for sustainability, given the projected prices. And, projects should be held to the pricing they quoted in the application to NTIA (with unforeseen but necessary changes being justified in writing to and accepted by NTIA).
5. Grant Mechanics: The Recovery Act requires all agencies to distribute funds efficiently and fund projects that would not receive investment otherwise.
a. What mechanisms for distributing stimulus funds should be used by NTIA and USDA in addition to traditional grant and loan programs?
Given the difficult credit situation, many operations will not be able to cash flow their portion of any project. A solution would be for a third party to provide grant funds on a matching basis for any approved purchase as it is made. Another option would be to permit the grant funds to be used as a loan guarantee on a commercial operating or construction type loan. For an applicant to cash flow the entire project and then get reimbursement after the fact will eliminate many otherwise excellent applicants.
b. How would these mechanisms address shortcomings, if any, in traditional grant or loan mechanisms in the context of the Recovery Act?
It would eliminate the lack of credit and ease the cash flow issue, which is one of the primary goals of the Recovery Act.
6. Grants for Expanding Public Computer Center Capacity: The Recovery Act directs that not less than $200,000,000 of the BTOP shall be awarded for grants that expand public computer center capacity, including at community colleges and public libraries.
a. What selection criteria should be applied to ensure the success of this aspect of the program?
Look at all of the pilot programs of this type that have been funded by RUS over the years and see which were successful. Use elements from these programs to create the criteria. Also, consult with the Gates Foundation, which has operated similar programs.
b. What additional institutions other than community colleges and public libraries should be considered as eligible recipients under this program?
Communities with a high elderly-to-youth population are in the greatest need of public computer capacity, along with someone to provide education. This is where computer literacy is the lowest. Any entity that can provide long-term funding for these resources should be eligible.
7. Grants for Innovative Programs to Encourage Sustainable Adoption of Broadband Service: The Recovery Act directs that not less than $250,000,000 of the BTOP shall be awarded for grants for innovative programs to encourage sustainable adoption of broadband services.
a. What selection criteria should be applied to ensure the success of this program?
Jacobellis v. Ohio - - Like the famous porn case - How do you define porn? The Courts say, “You know it when you see it.” Have the reviewers flag what they consider to be the most innovative proposals, then have a special group of reviewers pick the best from the flagged applications.
b. What measures should be used to determine whether such innovative programs have succeeded in creating sustainable adoption of broadband services?
Percentage of people with broadband now vs number with broadband x number of years later. Number of new businesses in the community after x years. Number of new employees after x years. Wage growth as compared to a community without broadband.
8. Broadband Mapping: The Recovery Act directs NTIA to establish a comprehensive nationwide inventory map of existing broadband service capability and availability in the United States that depicts the geographic extent to which broadband service capability is deployed and available from a commercial provider or public provider throughout each State.
a. What uses should such a map be capable of serving?
Identifying unused broadband capacity that providers can access. Who has excess capacity and at what locations it is available. Where doesn't capacity exist? Which community can't get broadband, even if they have fiber to the premise, because there is insufficient backhaul in the region? Identifying capacity available to each home and business, using something like Google Earth or Microsoft Live Search maps. Fixed wireless providing propagation maps. Fiber providers providing fiber deployment maps, etc. Identifying which providers can provide service to a specific home or business. Permit an end user to provide speed test results for a specific location (some way of verifying accuracy would be necessary so that a hostile competitor doesn't provide false information or a compromised machine doesn't incorrectly place blame.)
b. What specific information should the broadband map contain, and should the map provide different types of information to different users (e.g., consumers versus governmental entities)?
Yes, different users need different information. Internet Providers need access to information. POP site x has x GB of available bandwidth for sale. Time of availability. “No capacity available during the day, but x GB available from 11pm to 6am,” for instance What towers and buildings can be used as repeaters.
Consumers want to know what providers can provide service to the home or business.
c. At what level of geographic or other granularity should the broadband map provide information on broadband service?
Perhaps two maps. One, official map with data collected from the providers, reporting what they can do. The second map the same, but with a user-generated overlay of information from the public reporting on their specific locations.
d. What other factors should NTIA take into consideration in fulfilling the requirements of the Broadband Data Improvement Act, Pub. L. No. 110-385 (2008)?
e. Are there State or other mapping programs that provide models for the statewide inventory grants?
f. Specifically what information should states collect as conditions of receiving statewide inventory grants?
Where fiber exists -- both backhaul accessible by providers and where it is accessible by the end user. What fiber exists that the State prohibits access to? (For example, Nebraska prohibits public utilities from selling their excess fiber bandwidth, as it would provide competitive pressure for telephone companies). A breakout of bandwidth availability for those within city limits, as compared to those outside of city limits. In many rural areas, DSL/Cable is available within the city limits but unavailable outside of the city limits. Yet, the States will often report information on a zip code or census basis which does not reflect the lack of broadband for a significant portion of any community. What is the average minimum speed available during peak hours? As most providers report maximum speed and will not honestly report actual minimum speeds, an independent source of information is needed.
g. What technical specifications should be required of state grantees to ensure that statewide inventory maps can be efficiently rolled up into a searchable national broadband database to be made available on NTIA’s website no later than February 2011?
Searchable database with a common set of fields created by NTIA.
h. Should other conditions attach to statewide inventory grants?
Set a timeline. Accept alternative sources of information, as long as it is in the proper format and from a reputable source. Some States will fail to deliver an accurate or timely map. Permit alternative sources of information, if a State fails. Some companies will refuse to release information about the services they provide. Such a failure should make them ineligible for grants and loans and should make it possible for someone to receive assistance to overlay the area without protest from the non-cooperative entity.
i. What information, other than statewide inventory information, that should populate the comprehensive nationwide map?
j. The Recovery Act and the Broadband Data Improvement Act (BDIA) imposes duties on both NTIA and FCC concerning the collection of broadband data. Given the statutory requirements of the Recovery Act and the BDIA, how should NTIA and FCC best work together to meet these requirements?
9. Financial Contributions by Grant Applicants: The Recovery Act requires that the Federal share of funding for any proposal may not exceed 80 percent of the total grant.8 The Recovery Act also requires that applicants demonstrate that their proposals would not have been implemented during the grant period without Federal assistance.9 The Recovery Act allows for an increase in the Federal share beyond 80 percent if the applicant petitions NTIA and demonstrates financial need.
a. What factors should an applicant show to establish the “financial need” necessary to receive more than 80 percent of a project’s cost in grant funds?
b. What factors should the NTIA apply in deciding that a particular proposal should receive less than an 80 percent Federal share?
Past loans and grants to deploy fiber to within three miles of every home in an area but a failure to use that existing infrastructure. An existing partial deployment. A failure to complete a deployment in a timely fashion.
c. What showing should be necessary to demonstrate that the proposal would not have been implemented without Federal assistance?
10. Timely Completion of Proposals: The Recovery Act states that NTIA shall establish the BTOP as expeditiously as practicable, ensure that all awards are made before the end of fiscal year 2010, and seek assurances from grantees that projects supported by the programs will be substantially completed within two (2) years following an award.10 The Recovery Act also requires that grant recipients report quarterly on the recipient’s use of grant funds and the grant recipient’s progress in fulfilling the objectives of the grant proposal.11 The Recovery Act permits NTIA to de-obligate awards to grant recipients that demonstrate an insufficient level of performance, or wasteful or fraudulent spending (as defined by NTIA in advance), and award these funds to new or existing applicants.
a. What is the most efficient, effective, and fair way to carry out the requirement that the BTOP be established expeditiously and that awards be made before the end of fiscal year 2010?
A public web site that provides answers to formally submitted questions about the programs. Prompt availability of funds.
b. What elements should be included in the application to ensure the projects can be completed within two (2) years (e.g., timelines, milestones, letters of agreement with partners)?
Timelines. Failure to meet the timelines results in notice of failure. Repeated failures results in loss of control over the project by the applicant and project to be put out to bid for anyone else to complete.
11. Reporting and Deobligation: The Recovery Act also requires that grant recipients report quarterly on the recipient’s use of grant funds and progress in fulfilling the objectives of the grant proposal. The Recovery Act permits NTIA to de-obligate funds for grant awards that demonstrate an insufficient level of performance, or wasteful or fraudulent spending (as defined by NTIA in advance), and award these funds to new or existing applicants.
a. How should NTIA define wasteful or fraudulent spending for purposes of the grant program?
Use of money other than what was in the application (unless written request to do so went to NTIA and was accepted). Failure to deliver on services promised. Failure to deliver on the applicant’s financial share.
b. How should NTIA determine that performance is at an “insufficient level?”
This question isn't being asked, but the provider should be provided with ample warning that NTIA suspects a problem. Then, the provider should be given an opportunity to correct the problem in a timely fashion.
Failure to meet timelines and milestones laid out in the approved grant or loan.
c. If such spending is detected, what actions should NTIA take to ensure effective use of investments made and remaining funding?
Advertise the details of the project, the spending to date, the projected balance needed to finish the project and auction off the remaining project to the entities applying to finish the job.
12. Coordination with USDA’s Broadband Grant Program: The Recovery Act directs USDA’s Rural Development Office to distribute $2.5 billion dollars in loans, loan guarantees, and grants for broadband deployment. The stated focus of the USDA’s program is economic development in rural areas. NTIA has broad authority in its grant program to award grants throughout the United States. Although the two programs have different statutory structures, the programs have many similar purposes, namely the promotion of economic development based on deployment of broadband service and technologies.
a. What specific programmatic elements should both agencies adopt to ensure that grant funds are utilized in the most effective and efficient manner?
Permit each agency to review any application that provides service within the same zip code in order to reduce duplication and conflict.
b. In cases where proposals encompass both rural and non-rural areas, what programmatic elements should the agencies establish to ensure that worthy projects are funded by one or both programs in the most cost effective manner without unjustly enriching the applicant(s)?
Require the project to provide universal service within the target area. If there are two competing applications for an area with similar coverage, consider giving priority to the application that provides universal service to the larger area. Many operations may want to focus on just the most financially rewarding portions of a community and ignore the homes and businesses the Recovery Act specifically is attempting to help. Permitting such targeted services will limit the potential customer base of any entity attempting to provide service to the most needy. Universal service within an area receiving a grant using mixed technology will result in the most people being helped.
Look at what an existing operation currently provides. Does it provide service to just those within the city limits? Has it made any attempt to provide service to those outside of the city limits? Does its application propose to upgrade the service for those it already provides service to but ignores others within their geographic area? For example, many telephone companies provide DSL within city limits but provide no service to those outside of the city limits. Does the application address those that the company has ignored in the past?
13. Definitions: The Conference Report on the Recovery Act states that NTIA should consult with the FCC on defining the terms “unserved area,” “underserved area,” and “broadband.” The Recovery Act also requires that NTIA shall, in coordination with the FCC, publish nondiscrimination and network interconnection obligations that shall be contractual conditions of grant awards, including, at a minimum, adherence to the principles contained in the FCC’s broadband policy statement (FCC 05-15, adopted August 5, 2005).
a. For purposes of the BTOP, how should NTIA, in consultation with the FCC, define the terms “unserved area” and “underserved area?”
The numbers refer to points. If your target area meets the definition, then you get the points. The points are cumulative.
Unserved –
• 10 Any area with no provider providing more than 1 Mb down and 512 kbps up. (prorated to the portion of the homes in the target in this category)
Underserved – Any of the following with varying point scale depending on how many of the elements are met.
• 3 To maintain computability with the FFC broadband statement, any area with only one provider of service would be considered underserved.
• 1 Cannot receive symmetrical broadband service.
• 3 Receives average peak time bandwidth of less than 2d/1u Mb .
• 2 Receives minimum peak time bandwidth of less than 5d/1u Mb .
For example, if an applicant area has only one provider currently providing asymmetrical service of 3 mbps down and 1 mbps up and only does so within the city limits and 50% of the homes in the census tract or zipcode qualify as unserved then the unserved/underserved score would be
3 pts for single provider
1 pts for asymmetrical service
2 pts for less than 5 down but more than 2 up.
5 pts for more than 25% of the homes in the unserved category. (50% of 10)
So a total of 11 points on the unserved/underserved scale.
Within many census tracts and zipcodes, there will be a portion of the population that is served, underserved, and unserved. Hence, NTIA should permit an applicant to define the area to be served by the application however the applicant with a familiarity with the area feels is best. But, the applicant should also be required to report what services are available within the same zip code and census tracts as the application, even if the applicant does not propose delivering service to those other areas. The applicant should be required to map the unserved and underserved areas with all zipcode or census tracts the application covers, even if not all of the area is to be covered. This will help NTIA in its mapping project and will also highlight not only who the applicant is trying to help but also who they are ignoring.
b. How should the BTOP define “broadband service?”
(1) Should the BTOP establish threshold transmission speeds for purposes of analyzing whether an area is “unserved” or “underserved” and prioritizing grant awards? Should thresholds be rigid or flexible?
Thresholds should be flexible. If two applicants are competing within a service area for a grant or loan, the one offering the faster service should receive higher scores. Higher scores for symmetrical service. Thresholds could be based on Homes Per Square Mile (hpsm). 500 hpsm - 50 Mbs.
(2) Should the BTOP establish different threshold speeds for different technology platforms?
Speed should be based on the end user, not on how the service is delivered.
(3) What should any such threshold speed(s) be, and how should they be measured and evaluated (e.g., advertised speed, average speed, typical speed, maximum speed)?
Minimum speed and average speeds are the most important factor. What will the provider deliver during the busiest periods? Advertised speeds and maximum speeds are meaningless and should not be used. Many triple play providers advertise 3 Mb or 5 Mb service, which is max the client can get; but during peak times, they may deliver only dialup speeds.
(4) Should the threshold speeds be symmetrical or asymmetrical?
Symmetrical should be rewarded with higher scores, but not required.
(5) How should the BTOP consider the impacts of the use of shared facilities by service providers and of network congestion?
Network congestion is a major determinant in end user satisfaction and should be a major factor in deciding which applications are funded. Minimum service delivery to x percentage of the clients during peak times should be a major factor.
NTIA should consider requiring shared facilities to prorate available capacity based on percentage of financial contribution, as measured by both initial infrastructure costs and in the recurring costs. If one of the entities oversells their share of the shared facility, then their service offering will suffer and the market will reduce their market share.
c. How should the BTOP define the nondiscrimination and network interconnection obligations that will be contractual conditions of grants awarded under Section 6001?
(1) In defining nondiscrimination obligations, what elements of network management techniques to be used by grantees, if any, should be described and permitted as a condition of any grant?
The primary owner of a shared facility must place equipment that will permit the distribution of bandwidth commiserate with the financial contribution provided by each party sharing the facility. The primary owner must not be permitted to oversubscribe the available bandwidth. The facility and its network management must be open to independent review to assure honest and accurate management.
The percentage of the network that must be open and shared should be set by the applicant during the application process and approved by NTIA when giving the grant. Anyone wanting to access this portion of the network must make an initial payment to the primary owner at a rate proportional to the contribution made by the primary applicant and must make recurring cost contributions proportional to the bandwidth accessed.
(2) Should the network interconnection obligation be based on existing statutory schemes? If not, what should the interconnection obligation be?
(3) Should there be different nondiscrimination and network interconnection standards for different technology platforms?
Technologies that provide service to end users at less than 5 Mb should be exempted from the network interconnection obligations.
If the interconnection policy is based on the number of homes per square mile instead, then the providers to the very remote and unpopulated areas can be encouraged to use the most appropriate technology without overloading the design.
(4) Should failure to abide by whatever obligations are established result in deobligation of fund awards?
Yes.
(5) In the case of infrastructure paid for in whole or part by grant funds, should the obligations extend beyond the life of the grant and attach for the useable life of the infrastructure?
For a fixed number of years -- five or ten years. The useable life of the infrastructure is dependent on the technology used and the maintenance of the infrastructure. One does not want to encourage poor maintenance to shorten the useable life and, hence, shorten the obligation. Instead, set a fixed period of time for each technology.
d. Are there other terms in this section of the Recovery Act, such as “community anchor institutions,” that NTIA should define to ensure the success of the grant program? If so, what are those terms and how should those terms be defined, given the stated purposes of the Recovery Act?
NTIA should not require the applicant to obtain a commitment from anchor institutions as a condition of the project receiving approval.
Service should not be free to the anchor institutions, since cost is an effective way of metering a limited resource.
Anchor institutions are likely to subscribe to the broadband service if the overall project is approved.
e. What role, if any, should retail price play in these definitions?
Any retail price consideration should also take into consideration the costs associated with providing service to an area. Some areas will have much higher costs of placing the service and much higher costs of obtaining bandwidth. Rural areas far from population centers have a higher bandwidth cost from Tier 1 or 2 providers and, hence, must have a higher retail price in order to make a project work. A better measure is retail price minus cost per subscriber. It is not good to make this a cost plus based system, since such gives the provider an incentive to inflate costs. However, measuring the net per subscriber may be an effective way for NTIA to audit unjust enrichment; but, it should not be used as a method to reward grants.
14. Measuring the Success of the BTOP: The Recovery Act permits NTIA to establish additional reporting and information requirements for any recipient of grant program funds.
a. What measurements can be used to determine whether an individual proposal has successfully complied with the statutory obligations and project timelines?
b. Should applicants be required to report on a set of common data elements so that the relative success of individual proposals may be measured? If so, what should those elements be?
Possible elements might include:
• Percentage of actual subscribers of possible subscribers. (competitive market or sole provider)
• Average minimum speed provided, as measured by independent party
• Was the project completed on time?
• Was the project completed at or under budget?
15. Please provide comment on any other issues that NTIA should consider in creating BTOP within the confines of the statutory structure established by the Recovery Act.
• Limit project and agency overlap. Multiparty applications are more likely to result in time delays and problems unless there is a clear process for conflict resolution that does not involve the courts.
RUS:
The provisions regarding the RUS Recovery Act broadband grant and loan activities are found in Division A, title I under the heading Rural Utilities Service, Distance Learning, Telemedicine and Broadband Program of the Recovery Act.
1. What are the most effective ways RUS could offer broadband funds to ensure that rural residents that lack access to broadband will receive it?
For a number of years, RUS has struggled to find an effective way to use the Agency’s current broadband loan program to provide broadband access to rural residents that lack such access. RUS believes that the authority to provide grants as well as loans will give it the tools necessary to achieve that goal. RUS is looking for suggestions as to the best ways to:
a. bundle loan and grant funding options to ensure such access is provided in the projects funded under the Recovery Act to areas that could not traditionally afford the investment;
Combine the loan and grant programs so that the loan payback rate might be less than 100%. Set the loan payback rate to a long period of time. Open the loan program up to entities other than telephone companies. Reducing the loan payback rate to 60% or such would dramatically increase the demand on the loan funds.
b. promote leveraging of Recovery Act funding with private investment that ensures project viability and future sustainability; and
Award loans and grants to those providing the highest percentage of private investment. For example, a grant applicant willing to invest 40% instead of 20% might receive a higher score. Note that this will favor entities that have access to credit or that are utilities that have a source of revenue that is demand-independent.
c. ensure that Recovery Funding is targeted to unserved areas that stand to benefit the most from this funding opportunity.
Require any applicant for loan or grant funds to provide universal service at an average minimum speed during peak times to anyone who wants it anywhere within a county or census tract. Setting different bandwidths for those within small town city limits and those outside the city limits.
If an existing telephone company wants to leverage their existing fiber deployments which were subsidized with prior government loans and grants, then permit any entity that wants to provide universal service within a targeted county, zipcode, or census tract to interconnect to that fiber.
Limiting the use of the existing government subsidized infrastructure limits those who can provide service to the unserved areas and limits the private financing available to match the new funding opportunities.
2. In what ways can RUS and NTIA best align their Recovery Act broadband activities to make the most efficient and effective use of the Recovery Act broadband funds? In the Recovery Act, Congress provided funding and authorities to both RUS and the NTIA to expand the development of broadband throughout the country. Taking into account the authorities and limitations provided in the Recovery Act, RUS is looking for suggestions as to how both agencies can conduct their Recovery Act broadband activities so as to foster effective broadband development. For instance:
a) RUS is charged with ensuring that 75 percent of the area is rural and without sufficient access needed for economic development. How should this definition be reconciled with the NTIA definitions of “unserved” and “underserved?”
The definitions should match as closely as possible. The only added element to the RUS definition is the rural element. Within many census tracts and zipcodes, there will be a portion of the population that is served, underserved, and unserved. Hence, RUS should permit an applicant to define the area to be served by the application however the applicant wants. But, the applicant should also be required to report what services are available within the same zipcode and census tracts as the application, even if the applicant does not propose delivering service to those other areas. The applicant should be required to map the unserved and underserved areas with all zip code or census tracts the application covers, even if not all of the area is to be covered. This will help NTIA in its mapping project and will also highlight not only who the applicant is trying to help but also who they are ignoring.
Unserved – Any area with less than 1 Mb down and 512 kbps up.
Underserved – Any of the following with varying point scale depending on how many of the elements are met:
• To maintain computability with the FFC broadband statement, any area with only one provider of service would be considered underserved.
• Cannot receive symmetrical broadband service.
• Receives minimum peak time bandwidth of less than 5 Mb down and 1 Mb up.
• Receives minimum peak time bandwidth of less than 10 Mb down and 3 Mb up.
• Any census tract or zipcode where more than 25% of the homes or businesses are unserved.
Bandwidth thresholds should be flexible. If two applicants are competing within a service area for a grant or loan, the one offering the faster service should receive higher scores. Higher scores for symmetrical service. Thresholds could be based on Homes Per Square Mile (hpsm). 500 hpsm - 50 Mbs.
b) How should the agencies structure their eligibility requirements and other programmatic elements to ensure that applicants that desire to seek funding from both agencies (i) do not receive duplicate resources and (ii) are not hampered in their ability to apply for funds from both agencies?
NTIA and RUS should compare the zipcodes of the areas to be serviced by applicants to their program. Any area where there is an overlap should cause NTIA and RUS to consult with each other on the overlapping applications.
3. How should RUS evaluate whether a particular level of broadband access and service is needed to facilitate economic development? Seventy-five percent of an area to be funded under the Recovery Act must be in an area that USDA determines lacks sufficient “high speed broadband service to facilitate rural economic development.” RUS is seeking suggestions as to the factors it should use to make such determinations.
a) How should RUS define “rural economic development?” What factors should be considered, in terms of job growth, sustainability, and other economic and socioeconomic benefits?
There are two elements. 1) Is enough bandwidth available to the community? In other words, is there enough fiber to the community that bandwidth can be distributed to all of the potential demand? If not, then backhaul investment must be made before the end user infrastructure can be deployed.
2) If the backhaul infrastructure exists, then what bandwidth can be delivered to the end user?
Most of rural America has lost population because of the dramatic increase in agricultural productivity but a failure of these communities to diversify their economic base from agriculture. As a result, when a farm grows due to more efficient operations, the individual leaves and all of the jobs associated with servicing that individual leave as well.
Any area that has lost more than x% of its population over the last ten or twenty years is in the greatest need of economic development. Broadband deployment in such areas will permit a diversification from the agricultural economy.
b) What speeds are needed to facilitate “economic development?” What does "high speed broadband service" mean?
There are two categories of rural broadband users. Those who want to conduct business from afar. These individuals need VPNs, VOIP, and the ability to do large file transfers, both up and down. Such individuals would benefit greatly from minimum average symmetrical bandwidth speeds of at least 5 MB. Higher speeds are possible and beneficial, but the minimum should be defined as:
A minimum average symmetrical bandwidth speed of at least 5 MB and capable of doing VPNs, VOIP, and GB file transfers in both directions.
The backhaul bandwidth to provide this service to multiple users simultaneously is required.
The other category of user is the casual user who doesn’t require higher speeds but simply wants them.
To facilitate greater economic development, one needs to increase the number of individuals who fit into the first category. The infrastructure must exist before the economic development, based on broadband, can exist.
c) What factors should be considered, when creating economic development incentives, in constructing facilities in areas outside the seventy-five percent area that is rural (i.e., within an area that is less than 25 percent rural)?
• Will the development happen without the funding?
• Will the development create infrastructure that will increase the backhaul infrastructure to the rural areas?
4. In further evaluating projects, RUS must consider the priorities listed below. What value should be assigned to those factors in selecting applications? What additional priorities should be considered by RUS? Priorities have been assigned to projects that will: 1) give end-users a choice of internet service providers, 2) serve the highest proportion of rural residents that lack access to broadband service, 3) be projects of current and former RUS borrowers, and 4) be fully funded and ready to start once they receive funding under the Recovery Act.
a) What additional priorities should be considered by RUS?
Has the existing telephone company extended broadband beyond the small town city limits? Has it deployed last mile service? Does it have under-utilized, government-subsidized fiber through its territory? If so, then priority should be given to competitors. This will meet the FCC broadband directive that competition is the right of the end user and it will spur the existing provider to deploy more quickly and provide a higher level of service.
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.