FOR IMMEDIATE RELEASE

November 30, 2009

TIA Urges Broadband Grants Programs to Focus on Last Mile Projects

Leading Broadband Association Tells NTIA, RUS That Last Mile and Sustainable Adoption Programs Will Spur Middle Mile Investment; Streamlining of Rules Also Recommended

Washington, D.C. – The Telecommunications Industry Association (TIA) today filed comments urging the National Telecommunications and Information Administration (NTIA) and the Rural Utilities Service (RUS) to maintain focus on Last Mile and Sustainable Adoption programs through the RUS Broadband Initiatives Program (BIP) and the NTIA Broadband Telecommunications Opportunity Program (BTOP). TIA also recommended some procedural changes for the Second BIP/BTOP Notice of Funds Availability (Second BIP/BTOP NOFA).

"It is essential that broadband infrastructure networks are deployed for all Americans and that all Americans adopt broadband technology as part of their lives. The use of broadband networks, and particularly next-generation networks, advance many of our nation's priorities, including job growth, our nation's health and education, and public safety," said TIA Vice President for Government Affairs Danielle Coffey. "The First BIP/BTOP NOFA took a strong step toward meeting the purposes of the broadband funding provisions of American Recovery and Reinvestment Act of 2009 (ARRA) by focusing on Last Mile projects bringing broadband directly to unserved and underserved Americans and anchor institutions, and providing funding for Sustainable Adoption projects."

In its filing, TIA recommended that: "The RUS and NTIA should not scale back funding for Last Mile projects or Sustainable Adoption projects, since this would severely limit the ability of Applicants to deliver Last Mile connectivity to households and entities identified in the ARRA and consumers' adoption (use) of this broadband availability. Last Mile projects and Sustainable Adoption projects targeted to households in the areas served by such funding (as well as underserved households) can significantly spur Middle Mile broadband infrastructure development; if Last Mile or Sustainable Adoption funding is limited, investments in Middle Mile projects will likely decrease. Continuing to fund Last Mile projects, anchor institutions regardless of their location, and Sustainable Adoption projects (targeted to unserved and underserved households) will best meet the ARRA's goals."

In order to provide BIP funding to the best broadband infrastructure and adoption projects, the Second BIP/BTOP NOFA should allow all projects in rural areas – regardless of their location – to qualify for BIP funds in accordance with the criteria established in the First BIP/BTOP NOFA. Additionally, it is crucial that RUS and NTIA have the authority to allow transfers of BIP- and BTOP-funded facilities when such transfers serve the purposes of the ARRA and the BIP and BTOP programs.

"The RUS and NTIA must expedite fund allocations to promote job growth and meet the other goals of the ARRA by streamlining rules in the second NOFA," said Coffey. First, TIA recommended, infrastructure and adoption applications for projects serving multiple areas, which have one or more areas that are shown not to be unserved or underserved, should be allowed further review after excluding the non-qualifying projects. Additionally, information submitted in the First Round challenging claims that an area is unserved or underserved should be referenced and reviewed for any proposed projects in the Second Round that would serve that area.

In order to increase participation in the BIP and BTOP, NTIA and RUS should make clear that the award terms and conditions for infrastructure and adoption projects apply exclusively to the Applicants themselves, and not to project partners. Express clarification that award terms and conditions are to be applied exclusively to Applicants will remove reluctance on the part of some highly-qualified would-be project partners and thus increase the use of the best and most cost effective contractors, subcontractors, and service providers to awardees who may have been reluctant to partner with Applicants due to fear that certain rules and reporting requirements in the First BIP/BTOP NOFA would apply to them.

RUS and NTIA should clarify what nondiscrimination rules apply if any nondiscrimination rules created by the Federal Communications Commission (FCC) conflict with nondiscrimination rules attached to BIP/BTOP funds and consider establishing a time limitation on the application of nondiscrimination requirements on awardees.

Finally, RUS and NTIA should modify aspects of the First BIP/BTOP NOFA that clearly disadvantage applications proposing multi-state or national projects. All providers capable of broadband delivery must be given an equal opportunity to succeed if the ARRA is to be implemented in a technology neutral manner as mandated by Congress.

"As RUS and NTIA evaluate ways to make their programs even stronger, these policy proposals will increase delivery of broadband to households and anchor institutions, encourage program participation, and streamline the BIP and BTOP processes to expedite the delivery of award funding," said Coffey.

The full text of TIA's filing is available on its agencies filings page at tiaonline.org.

For more information on this matter, please contact Danielle Coffey dcoffey@tiaonline.org.

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About TIA
The Telecommunications Industry Association (TIA) represents the global information and communications technology (ICT) industry through standards development, advocacy, tradeshows, business opportunities, market intelligence and world-wide environmental regulatory analysis. With roots dating back to 1924, TIA enhances the business environment for broadband, mobile wireless, information technology, networks, cable, satellite and unified communications. Members' products and services empower communications in every industry and market, including healthcare, education, security, public safety, transportation, government, the military, the environment and entertainment.

TIA co-owns the SUPERCOMM^® tradeshow  and is accredited by the American National Standards Institute (ANSI). Visit tiaonline.org.

TIA's Board of Directors includes senior-level executives from ACS, ADC, ADTRAN, Alcatel-Lucent, ANDA Networks, AttivaCorp, Avaya, Bechtel Communications, Inc., Cisco Systems, Corning Incorporated, Ericsson, Inc., GENBAND, Inc., Graybar, Henkels & McCoy, ILS Technology, Intel Corporation, Intersect, Inc., LGE, Microsoft, Motorola, Nokia Siemens Networks, Nortel, Openwave, Inc., Panasonic Computer Solutions Co., Powerwave Technologies, Qualcomm, Research In Motion, Sumitomo Electric Lightwave Corporation, Tellabs, Tyco Electronics, Ulticom, Inc., and Verari Systems. Advisors to the Board include FAL Associates, Orca Systems and Telcordia Technologies.

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