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WildBlue Wins $19M Grant for Rural Satellite Broadband
WildBlue Communications, a subsidiary of ViaSat,  won a grant valued at $19.5 million to connect unserved residents to affordable broadband services. The funding comes from the Department of Agriculture Rural Utilities Service (RUS) under the American Reinvestment and Recovery Act of 2009 (ARRA).
Subscribers covered by the grant would receive service from one of WildBlue's three current satellites - Anik-F2, WildBlue-1, and AMC-15 - and starting in mid 2011, from the new high-capacity ViaSat-1 satellite....
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FCC Survey: 93 Million Americans without Broadband
A total of 93 million Americans -- one-third of the country -- are not connected to high-speed Internet at home, according to the FCC's newly-published National Broadband Plan Consumer Survey. This includes approximately 80
million adults and 13 million children over the age of five.
The survey identifies three main barriers to adoption:
- Affordability: 36 percent of non-adopters, or 28 million adults, said they do not have home
broadband because the monthly fee is too expensive (15 percent), they cannot afford a computer,
the installation fee is too high (10 percent), or they do not want to enter into a long-term service
contract (9 percent). According to survey respondents, their average monthly broadband bill is
$41.
- Digital Literacy: 22 percent of non-adopters, or 17 million adults, indicated that they do not have
home broadband because they lack the digital skills (12 percent) or they are concerned about
potential hazards of online life, such as exposure to inappropriate content or security of personal
information (10 percent).
- Relevance: 19 percent of non-adopters, or 15 million adults, said they do not have broadband
because they say that the Internet is a waste of time, there is no online content of interest to them
or, for dial-up users, they are content with their current service.
The survey also found that non-adopters usually have more than one barrier that keeps them from having
broadband service at home. Over half of non-adopters, when selecting from a menu of possible barriers to
adoption, chose three or more. For example, more than half of non-adopters who cited cost also listed
reasons relating to digital literacy or relevance.
The full study is online....
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Verizon Applauds FCC Video Programming Ruling
Verizon applauded the new FCC video distribution decision.
"This is a big-time victory for television sports fans. The FCC's decision to make must-see regional sports programming, including high-definition feeds, presumptively available to competitors, puts viewers in the driver's seat. This ruling means that consumers will no longer have to stick with their incumbent cable provider in order to watch local teams in high definition," stated Kathleen Grillo, Verizon senior vice president of Federal Regulatory Affairs....
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Department of Commerce Awards $63 Million in Broadband Grants
The Department of Commerce's National Telecommunications and Information Administration (NTIA) announced grants totaling $63 million to expand broadband access and adoption in Massachusetts, Michigan and North Carolina.
Funded by the American Recovery and Reinvestment Act, NTIA's Broadband Technology Opportunities Program (BTOP) provides grants to support the deployment of broadband infrastructure in unserved and underserved areas, enhance and expand public computer centers, and encourage sustainable adoption of broadband service. These investments will help bridge the technological divide, boost economic growth and create jobs.
New grant recipient include:
- Massachusetts, University of Massachusetts-Lowell: $780,000 broadband adoption grant with an additional $196,000 in applicant-provided matching funds to promote broadband awareness and computer literacy among vulnerable populations, including the nation's second largest Cambodian population, low-income and at-risk youth, the unemployed, residents without college degrees, and seniors in Lowell and Merrimack Valley. As part of the program, University of Massachusetts--Lowell students will work in local computer centers with at-risk youth and seniors to develop appropriate training and outreach materials.
- Michigan, Merit Network.: $33.3 million infrastructure grant with an additional $8.3 million in matching funds to build a 955-mile advanced fiber-optic network through 32 counties in Michigan's Lower Peninsula. The project also intends to directly connect 44 community anchor institutions and will serve an area covering 886,000 households, 45,800 businesses, and an additional 378 anchor institutions.
- Michigan, Michigan State University: $895,000 public computer center grant with an additional $235,000 in matching funds to expand 84 existing library computer centers and establish four new computer centers. Computer center sites were selected by targeting underserved and high-unemployment population areas and then focusing on those libraries with the greatest need for additional computing capacity. The project will add 500 new workstations at these targeted public computer centers throughout the state and serve nearly 13,000 additional users per week.
- North Carolina, MCNC: $28.2 million infrastructure grant with an additional $11.7 million in matching funds and in-kind contributions to build a 494-mile middle-mile broadband network passing almost half the population of North Carolina in 37 counties. The network will build new rings in the western and eastern regions of the state, which will connect to 685 miles of existing infrastructure in the urbanized central region, expanding the reach of the North Carolina Research and Education Network (NCREN), an established broadband service for community anchor institutions in the state.
NTIA received nearly 1,800 applications during the first BTOP funding round and is currently awarding grants on a rolling basis. Including today's announcement, NTIA has now awarded 15 grants totaling approximately $200 million under the program. A second round of BTOP applications will be accepted through March 15, 2010....
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MCNC Awarded $28.2 Million in Broadband Recovery Funds
MCNC, which operates the North Carolina Research and Education Network (NCREN), one of the nation's first statewide education and research networks, has been awarded $28.2 million in American Recovery and Reinvestment Act (ARRA) Broadband Recovery Funds. NCREN provides broadband communications technology services and support to K-12 school districts, higher education campuses, academic research institutions, and public health facilities across the state.
MCNC raised $11.7 million in matching funds for its successful application through private sources, including $4 million from the MCNC endowment, making the total project a $40 million investment in North Carolina's broadband infrastructure.
MCNC will begin immediately to undertake the work of planning and building the new middle-mile fiber. Construction is expected to last up to three years. The new fiber build will be an essential element in North Carolina's plans to reach citizens and community anchor institutions that currently have limited broadband access.
Within the next 60 days, MCNC will issue several requests for proposal (RFP) for the design, construction and operation of the network. These RFPs have the potential to create more than 230 engineering/construction jobs.
The new fiber build will traverse 37 counties in southeastern and western North Carolina.
"We are pleased to learn of the BTOP award to MCNC," said Mike Murphy, chairman of the MCNC Board of Directors. "The 480 miles of new fiber throughout the western and southeastern part of North Carolina will ensure that our K-12 schools, universities, community colleges, university hospitals, and other community anchor institutions (libraries, public health) will have access to unlimited amounts of bandwidth now and into the future. All North Carolinians will benefit from the public/private partnership that created this application."...
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FCC Establishes New Rules for Video Distribution
The FCC is establishing new rules to allow DBS providers, telcos and other competitors to obtain more of the "must have" programming they need to offer viable alternative video packages to consumers and an opportunity to file complaints if the programming is withheld.
Previously, a loophole in the Program Access rules enabled cable-TV operators to lock up local sports events and other popular programming and withhold them from rival providers.
The FCC said its new Order promotes competition, fosters innovation and empowers consumers, all while creating a fair process for the commission to handle pending and new claims in a speedy and just manner.
FCC Chairman Julius Genachowski stated: "Today's action represents a major step toward realizing the promise of a competitive marketplace for video services -- while also supporting innovation in the video marketplace. Our new rules are structured to preserve incentives for cable operators to develop innovative programming such as local news networks. The new rules also create a fair process for the Commission to adjudicate claims."...
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UK Plans £1 Billion Investment in Rural Broadband
The governement of the UK will invest £1 billion in a Next Generation Fund to bring broadband to rural areas. Specifically, the objectives of the Next Generation Fund are:
- To support Digital Britain's aim to roll out next generation networks to at least 90% of the UK by 2017;
- To support economic growth by incentivising market investment in communications infrastructure to meet the needs of businesses and households;
- To maximise links with the Government's Universal Service Commitment -- a parallel broadband investment programme to ensure every community has access to 2Mbps broadband connection by 2012.
Government is now consulting on the most effective way to deploy the investment and will soon appoint a procurement team to oversee the delivery and management of Next Generation Access.
"This investment is about bringing the future of broadband to areas of the country that would otherwise miss out. We cannot underestimate the opportunities this will bring for homes and businesses which is why we are taking action to make sure everyone benefits. Already the market is delivering superfast internet speeds of 50Mbps to half the country but we cannot be certain that it will reach the communities that are not currently served, which is why we are putting in an extra £1billion to support the market," stated Business Secretary, Lord Mandelson....
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Cable Operators Call for "Content Neutrality" Along with Net Neutrality
The American Cable Association, which represents cable network operators, is calling on the FCC to stop content providers from using wholesale arrangements to restrict consumer access to lawful content. ACA cited Disney's ESPN360.com as an example where the most powerful sports programmer denies access to content, unless a consumer subscribes to a particular broadband provider.
"ACA believes that content distributors such as ESPN360 should live under the same Net Neutrality rules as broadband service providers," American Cable Association President and CEO Matthew M. Polka said. "The foremost principle of Net Neutrality is that consumers can access the legal content of their choice. ESPN360 fails that principle, and any regulation must address that."
ACA is urging the FCC not to overlook the importance of Content Neutrality because rules solely focused on broadband network providers would leave a gaping hole in the regulatory regime and expose consumers to an assortment of harms that would likely drive up the cost of broadband, a result totally at odds with the Obama Administration's goal of making broadband access both universal and affordable.
ACA said ESPN360's closed Internet business model will effectively force those with no interest in watching sporting events on the Internet to subsidize those who routinely want to access ESPN360's content.
"Despite having the technological know-how to provide this content directly to subscribers for a fee, ESPN has opted to block access to this Web content unless an access provider agrees to place this financial burden on all of its broadband customers," Polka said. "That is wrong, and the FCC must ensure that each consumer has the individual choice to buy or not buy ESPN360."
Polka also stressed that Net Neutrality regulations should permit ISPs to engage in reasonable network management practices and should give them the right to experiment with a range of consumer pricing models, especially consumption- and metered-billing options....
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FCC Investigates Middle and Second Mile Access Market
The FCC is seeking comment on the market dynamics for middle and second mile access services. Specifically, the FCC is looking for information as to whether "backhaul costs . . . stand as impediments to further broadband deployments." The FCC says several entities have claimed that adequate, reasonably priced, and efficiently provided access to middle and second mile transport services and facilities play an important -- if not gating -- role in the economics of broadband deployment, particularly in rural, unserved, and underserved areas. Public comment, which is due by November 16, will held shape the FCC's National Broadband Plan.
The FCC defines "middle mile transport" refers generally as the transport and transmission of data communications from the central office, cable headend, or wireless switching station to an Internet point of presence. "Second mile transport" refers generally to the transport and transmission of data communications from the first point of aggregation (such as a remote terminal, wireless tower location, or HFC node) to the point of connection with the middle mile transport.
The public inquiry seeks input in the following areas:
1. Network Components of Broadband Connectivity. On a per-end user connection basis, how much middle mile capacity is needed to provide adequate broadband Internet access to that end user connection? How does this vary? What technology options are coming in the next 5-10 years for middle mile and second mile connections?
2. Availability and Pricing of Middle and Second Mile Connectivity. What is the price of purchasing middle mile and second mile connectivity, broken down by relevant geographic area and technology (e.g., DS3, microwave, OCn, Fast Ethernet, Gigabit Ethernet)? How much do these prices vary by length of the circuit? How large are discounts from tariffed rates for middle mile and second mile connectivity obtained from incumbent local exchange companies? Given current and projected demand and supply conditions, what portion of the overall cost of providing broadband Internet service to an end user is attributable to middle mile and second mile transport? How do these vary?
3. Pricing and Availability of Internet Connectivity. What is the current price per megabyte per month for a dedicated Internet access (DIA) port charged by a Tier 1 Internet backbone service provider? Likewise, what is the current price for other forms of Internet backbone connectivity available to Internet service providers, such as a transit agreement?
4. Economics of Deployment. Is the provision of a high-capacity fiber optic middle mile or second mile connection to a particular location a natural monopoly in some locations? To what extent do providers self-provide or integrate components of middle mile and/or second mile transport? Are certain types of providers—such as cable operators -- more likely to self-provide these services, perhaps because they can utilize that bandwidth not only for broadband Internet access but also for the delivery of video programming? If some government subsidy or action is necessary to facilitate construction of second mile and middle mile facilities, please identify the type of government action that would be adequate, such as the proposed regulatory action, explicit funding, or tax credits.
5. Nature of Competition and Availability of Alternatives. a. How do firms compete in providing middle mile transport services? What is the effect on price of the presence of a second or third facilities-based provider of middle mile or second mile transport service?
Additional questions in each of these areas is online....
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Comcast Prevails in Legal Battle over MSO Size
Comcast prevailed in a legal case against the FCC. The decision handed down by the U.S. Court of Appeals for the District of Columbia Circuit that vacates an FCC rule limiting the sized of cable operators. The court ruled that the FCC must consider competition from satellite providers when calculating the market share held by a cable operator. The decision could clear the way for further consolidation of cable operators....
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NTIA Receives 2,200 Applications for Broadband Stimulus Funding
The U.S. National Telecommunications and Information Administration (NTIA) and the Department of Agriculture's Rural Utilities Service (RUS) received almost 2,200 applications requesting nearly $28 billion in funding for proposed broadband projects in all 50 U.S. states, U.S. territories and the District of Columbia.
This is the first round of American Recovery and Reinvestment Act funding aimed at expanding broadband access and adoption to help bridge the technological divide and create jobs building Internet infrastructure, with $4 billion available through loans, grants, and loan/grant combinations.
The Recovery Act provided a total of $7.2 billion to NTIA and RUS to expand access to and adoption of broadband services. Of that funding, NTIA will utilize $4.7 billion to deploy broadband infrastructure in unserved and underserved areas in the United States, expand public computer center capacity, and encourage sustainable adoption of broadband service. RUS will invest $2.5 billion to facilitate broadband deployment in primarily rural communities. Approximately $2.4 billion from RUS and up to $1.6 billion from NTIA is available in this first grant round.
"Applicants requested nearly seven times the amount of funding available, which demonstrates the substantial interest in expanding broadband across the Nation," said Lawrence E. Strickling, Assistant Secretary for Communications and Information and Administrator of NTIA. "We will move quickly but carefully to fund the best projects to bring broadband and jobs to more Americans."
A preliminary analysis of applicant-reported data shows that NTIA and RUS received requests for grants and loans totaling nearly $28 billion. When including about $10.5 billion in matching funds committed by the applicants, there are over $38 billion in proposed broadband projects....
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USDA Makes Available $4 Billion for Broadband Stimulus Projects
The U.S. Department of Agriculture (USDA) and the Obama administration announced the availability of $4 billion in American Recovery and Reinvestment Act loans and grants to help bring broadband service to un-served and underserved communities across America.
The Recovery Act provided a total of $7.2 billion to the Commerce Department's National Telecommunications and Information Administration (NTIA) and the U.S. Department of Agriculture's Rural Utilities Service (RUS) to accelerate broadband deployment in areas of the country that have been without the high-speed infrastructure. Of that funding, NTIA will utilize $4.7 billion to deploy broadband infrastructure in un-served and underserved areas in the United States, expand public computer center capacity and encourage sustainable adoption of broadband service. RUS will invest $2.5 billion to facilitate broadband deployment in rural communities.
NTIA and RUS will be accepting applications for loans, grants and loan/grant combinations to be awarded by each agency under a single application form. Applications will be accepted beginning July 14, 2009, through 5:00 p.m. EDT on August 14, 2009.
This is the first of three rounds of funding the Agriculture and Commerce Departments will provide.
Public workshops in July to share information about the funding availabilities and the application process. Forums will be held in Boston, Mass.; Charleston, W.Va.; Minneapolis, Minn.; Memphis, Tenn.; Lonoke, Ark.; Birmingham, Ala.; Billings, Mont.; Albuquerque, N.M.; and Los Angeles, Calif.
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Zhone's New MXK Terabit Platform Gains RUS Acceptance
Zhone Technologies' new MXK platform has been accepted by the US Department of Agriculture's Rural Utilities Service (RUS) for use by RUS program participants. RUS and the National Telecommunications and Information Agency (NTIA) are responsible for dispersing the $7.2 billion in economic stimulus funding allocated for broadband initiatives under the 2009 American Recovery and Reinvestment Act (ARRA)....
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Internet Innovation Alliance Comments of National Broadband Strategy
The Internet Innovation Alliance issued its recommendations for a national broadband plan. Key points from include:
- "Focus on what we know while we learn what we need to know. We know roughly 10 million households lack any broadband options, and connecting them requires billions of dollars. By contrast, policy makers need greater qualitative information on why many Americans are choosing not to subscribe to broadband where it is available. The National Broadband Strategy should embrace new innovative programs, but not rush decisions that will benefit from the broadband mapping currently underway.
- Tap local knowledge. States and localities have much to offer to the broadband discussion. Federal officials should work closely with Mayors, Governors and community leaders, seeking every opportunity to empower those on the ground who are closest to the challenges and most creative in customizing answers.
- Enable Entrepreneurs and Plan for Major Innovations. Federal investments in broadband should never lock communities or the market into specific technologies or standards. While government planners should reflect previous experience, such as the benefits of connecting libraries and community technology centers, they should also enable game-changing technologies to transform the landscape.
- Implement sustainable solutions. We must take care to avoid new entitlement programs, connecting communities and individuals with broadband offerings that they can never afford to maintain. Government investments that lack sustainable funding are not sound investments in our future. Similarly, federal regulations to direct one-time grants should complement, not imperil, the $60-$80 billion annually invested by private actors in the telecommunications marketplace."
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FCC Releases Report on Broadband Strategy for Rural America
The FCC released a report entitled "Bringing Broadband to Rural America" that identifies common problems affecting rural broadband, including technological challenges, lack of data, and high network costs. Acting Federal Communications Commission Chairman Michael J. Copps described the report as a starting point for the development of policies to deliver broadband to rural areas and restore economic growth and opportunity for Americans residing and working in those areas.
The American Recovery and Reinvestment Act of 2009 (Recovery Act) established several broadband initiatives with $7.2 billion in funding. This includes $4.7 billion in funding for the Broadband Technology Opportunities Program (BTOP) administered by the National Telecommunications and Information Administration (NTIA) in consultation with the FCC. The purposes of BTOP is to provide access to broadband in unserved areas, improve broadband access for both underserved areas and public safety agencies, and provide broadband education, training and support.
The Recovery Act also provided an additional $2.5 billion in funding for the Broadband Investment Program administered by the Rural Utilities Service (RUS) of the USDA. This program is designed to support the expansion of broadband service in rural areas through financing and grants to projects that provide access to high speed service and facilitate economic development in locations without sufficient access to such service....
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Alcatel-Lucent Launches 'Broadband for All' Program in US
Alcatel-Lucent has kicked off a "Broadband for All" program in the United States to provide advisory services to telecommunications companies, municipalities and developers interested in applying for broadband stimulus funds as part of the American Recovery and Reinvestment Tax Act (ARRA) of 2009. The Act provides more than $7 billion in grants, loans and loan guarantees to unserved and underserved rural areas, offering them broadband access and services that have been previously limited or unavailable.
More than 6,200 small service providers, municipalities, utilities and developers provide communications services to residents of rural areas throughout the United States. Alcatel-Lucent's "Broadband for All" program offers telecom providers a turnkey service to apply for government funding including grant application assistance, as well as technology solutions to enable them to upgrade their voice, video and data services for the 21st century. The ARRA of 2009 represents the government's largest commitment to accelerate the availability of broadband technology for the rural and underserved markets, as well as public safety.
Alcatel-Lucent said its team of specialists are able to support rural service providers, municipal customers, and private developers by offering:
- Funding application preparation and follow-up
- Advocacy with the key stakeholders and agencies (National Telecommunications and Information Administration (NTIA) and the U.S. Department of Agriculture's Rural Utilities Service (RUS) which are administering the funds)
- Technology consulting and solutions
- Regional seminars and webinars to educate customers and consultants about the funding and application process
"The stimulus bill offers a unique opportunity for service providers, municipalities and developers to upgrade their networks for decades to come with technology that supports broadband access and services," said Rich Wonders, Vice President of Strategic Marketing for Alcatel-Lucent's Americas region.
"Not only is this a chance to offer their customers the kinds of broadband access enjoyed in more densely populated areas, but this represents a significant opportunity to create jobs throughout the U.S. The single largest cost component of deploying rural broadband is in the physical construction and deployment of the network, so these projects will create jobs as well as result in much better communications services for the residences and businesses in those communities."
With a proven track record of working with telecommunications providers in rural areas, Alcatel-Lucent has one of the broadest portfolios of products granted Rural Development Acceptance and/or Buy American status by the U.S. Department of Agriculture's Rural Development agency for deployment under the Rural Development Broadband Loan and Loan Guarantee Program. Alcatel-Lucent has more than 20,000 U.S.-based employees and includes the unrivalled technical and scientific expertise of Bell Labs, one of the largest innovation powerhouses in the communications industry....
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