[Satellite News 07-08-09] The U.S. Department of Agriculture‘s Rural Utilities Service (RUS) and the U.S. National Telecommunications and Information Administration (NTIA) outlined its requirements for state and local governments to apply for $7.2 billion in broadband stimulus grants set aside from the American Recovery and Reinvestment Act, in a Notice of Funds Availability (NOFA) released July 1.
    According to the NOFA, all broadband stimulus money must be disbursed by Sept. 30, 2010 and grant recipients have three years to fully complete their projects. The RUS and NTIA will accept applications between July 14 and Aug. 14.   
    Several satellite companies are aggressively seeking broadband funding. In an effort to promote its ability to meet requirements, WildBlue Communications recently demonstrated that it could produce download speeds at 12 times faster than its current speeds depending on if it is able to build a new high-capacity satellite. The company said it was hoping that broadband stimulus money would cover its costs. WildBlue also is hoping that having its satellite built within the two-year time frame will count for “substantial deployment” outlined by NTIA. If not, the requirements raise a new set of questions as to whether the timeline discriminates against satellite.
    However, the requirements answer some questions posed by satellite industry executives as to what constitutes adequate broadband speeds as well as what defines an unserved and underserved area. The organizations will require an advertised speed of at least 768 kilobits per second (kbps) downstream and at least 200 kbps upstream to end users or “sufficient capacity in a middle-mile project," according to the NOFA.
    The NTIA and RUS define an area as underserved if no more than 50 percent of the households in the proposed area can already have access to "facilities-based, terrestrial broadband service" at greater than 768 kbps downstream and 200 kbps upstream, no fixed or mobile broadband service provider advertises broadband transmission speeds of at least three megabits per second (Mbps) downstream and if its rate of broadband subscribership equals 40 percent or less of its households. An area meets the definition of unserved if at least 90 percent of its households lack access to broadband service.
    Ohio-based satellite company Skycasters also has been aggressive in seeking broadband funds on a local level. Skycasters President Mike Kister said he met with Ohio Gov. Ted Strickland (D) to discuss the possible role that Skycasters could play in bringing broadband access to the state’s unserved and underserved areas. Kister said the talks included Skycasters’ goals in universal accessibility and telemedicine. “We focused on the rapid deployment of satellite solutions versus laying of fiber and the immediate impact that would have on creating jobs in Northeast Ohio,” Kister said in a statement.
    Skycasters’ proposed solution involves providing the last mile with WiMax and Wi-Fi towers, using satellite as the middle mile on an interim basis until the proposed fiber infrastructure is completed. “Using satellite will allow us to bring broadband access to large areas of the country now so that our nation can reap the benefits of broadband connectivity sooner rather than later. Once the fiber is available, the last mile infrastructure can be backhauled with fiber, while the satellite connection is retained to serve the crucial role as a backup,” said Kister.
    Hughes CEO Pradman Kaul said that his company has made an extensive effort to promote satellite-based solutions to political officials on various levels. “We’ve briefed many in congress and have had meetings with the administration. I think everyone in Washington understands that there is no single solution for the rural broadband connectivity problems. Satellites, cable and fiber all have a role to play in providing to served and unserved areas and we will see what that role will be at the end of the year when NTIA hands out their awards,” he said.