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2 September 2009

First round of broadband Stimulus funds 7 times oversubscribed

Although all the headlines last week on the US Broadband Stimulus funding were about the major US operators not applying to use government funds to bring broadband to the poor and the rural. This week they were about the fund being seven times oversubscribed.

The Commerce Department’s National Telecommunications and Information Administration (NTIA) and the Department of Agriculture’s Rural Utilities Service (RUS) said this week they had received 2,200 applications asking for $28 billion across all 50 US states. This is the first round of American Recovery and Reinvestment Act funding aimed at expanding broadband access and adoption as the same time as creating jobs and $4.0 billion is up for grabs. The second round will be presided over by RUS which will take the total bill to $7.2 billion. In this first round about $2.4 billion from RUS and up to $1.6 billion from NTIA is available.

The two report that applications came in from state and local government, charities, industry and other organizations such as such as libraries, universities, community colleges, hospitals and public safety organizations.

‘Applicants requested nearly seven times the amount of funding available, which demonstrates the substantial interest in expanding broadband across the Nation,” said Lawrence 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 quick analysis shows that the requests included pledges for a further $10.5 billion in spending to match the funds, offered by the applicants.

There were more than 260 applications to fund broadband infrastructure projects in unserved and underserved areas and 400 applications for broadband infrastructure projects in rural areas. More than 320 applications were filed for projects to promote sustainable demand for broadband services, including broadband education, awareness, training, access, equipment or support, particularly among vulnerable population groups where broadband technology has traditionally been underused.

More than 360 applications were filed asking for funds for public computer center projects, to expand access to broadband service at public libraries, community colleges, and other institutions.

In the coming weeks, NTIA and RUS will post online a searchable database containing summaries of all applications received.