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Aug. 14, 2009

Wireless vendors, mobile service providers and wireless system developers are busy putting the final touches on their applications for broadband stimulus funds with today's Round 1 deadline.

The Obama Administration is appropriating $7.2 billion toward expanding broadband access to rural and underserved communities across the United States.

The National Telecommunications Information Administration (NTIA)’s Broadband Technology Opportunities Program (BTOP) will distribute about $4.7 billion in total grant funds.

The Rural Utilities Service (RUS) will allocate $2.5 billion. Round 1 includes part of those funds. Applicants also will have a chance to compete in Rounds 2 and 3.

Some wireless vendors have offered assistance to some applicants. At least five major sections of the 39-page application can be strengthened with contributions from mobile services vendors.

Harris Stratex Networks has seen some interest from interested entities including city and state governments, educational institutions, public safety, wireless ISPs and carriers, according to Gary Croke, who is responsible for the company’s Go Stimulus program.

“I really think the stimulus package is a once-in-a-lifetime opportunity” for telecom and Internet equipment providers, said Croke.

On Aug. 11, Harris Stratex announced it had signed a contract with India’s ICOMM to supply, install, commission and maintain a mobile Wi-MAX network for Bharat Sanchar Nigam Ltd. The company has identified India as a major market for its WiMAX products.

Among various WiMAX providers hoping to get a boost from the stimulus package are Towerstream and ERF Wireless.

P.J. Louis, who has been selected by NTIA as one of the reviewers of the projects, says he sees the stimulus funds as a way to jumpstart WiMAX in a lot of areas, but it won’t be the best solution in all cases. In some markets, it may make more sense to build out fiber or provide DSL.

Louis says he would expect the major U.S. carriers to apply for the funds as well because they’re operating businesses today and would be doing a disservice to the public if they didn’t.

“We believe fundamentally that wireless is ideal for stimulus,” said Croke. “That’s something WiMAX and microwave backhaul both provide.”

Wireless also is less costly compared with DSL or fiber, he says.

Louis had not yet received the guidelines on which he is supposed to review applications, but was told he would get them before the close of business yesterday.

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Source: The FCC.