ACA: New Stimulus Rules Are Not Fair, Balanced
Small Operators Say Guidelines Cut Them Out Of Meaningful Participation
John Eggerton -- Multichannel News, 2/2/2010 4:10:30 PM
Small and mid-sized cable operators are not happy with the new guidelines in the second round of bidding for broadband stimulus bucks, arguing that the guidelines essentially cut them out of meaningful participation in the stimulus project.
ACA represents almost 900 operators.
"ACA is disappointed that NTIA and RUS structurally modified the programs in a way that makes it harder for small cable providers to receive last-mile funding," said ACA president Matt Polka. "The rules seem to favor every entity except small cable operators, who are well-positioned to deliver state-of-the-art broadband facilities in rural and remote communities at low costs.
The guidelines were revamped in an attempt to make it easier and more attractive to bid, but there was also a thumb added to the scale in NTIA funding decisions for middle mile projects that link anchor institutions like schools, libraries and community centers, rather than the "last mile" projects that wire unserved consumers. RUS was left to hand out most of the last mile money. But the new RUS guidelines give even more weight to companies that have already borrowed money under the Rural Electric Act, says Polka, which means it favors traditional phone companies. The new round of bidding also sets aside $100 million for satellite broadband targeted at the same rural unserved areas ACA members target.
In a letter to the heads of the National Telecommunications & Information Administration and Rural Utilities Service, which are handing out the billions in broadband bucks, Polka said that the new guidelines "extinguish any hope for small cable operators to use broadband stimulus funds to build out last-mile facilities.
Of the 80 ACA members (less than 10% of membership) who applied in the first round of funding, only one recieved it, according to Polka, suggesting the odds for success could be worse, not better, this time around.
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