Satellite, for ages the linchpin of rural broadband access, seems to have been sidelined in the latest round of stimulus funding for US access. Although the first round of grants saw several major applications from combined terrestrial/satellite ventures, the new phase will only allocate leftover money to satellite.
In round two, the two agencies which work together to dole out broadband stimulus awards, the NTIA and RUS, will address separate areas, using their traditional and different processes. Satellite will come under the RUS’ remit, but it will only consider applications for areas left unserved by terrestrial networks, and after other funds have been awarded.
The two agencies are running about three months behind schedule on allocating funds from the first round of the $7.2bn broadband stimulus program, but the second round is already underway, with new rules. In round one, the NTIA (National Telecoms and Information Administration) and RUS (Rural Utilities Service) acted together, but in round two, which has a total value of $4.8bn, they will be independent. It is hoped this will streamline the process, which is expected to be oversubscribed like round one.
In round two, the NTIA will allocate $2.6bn, focusing on infrastructure for the middle mile and community projects. The RUS will control $2.2bn, mainly for last mile infrastructure proposals.
The NTIA says its main areas of interest ‘ and $2.35bn of its new funds – will be
‘comprehensive community’ projects, in particular ‘middle mile broadband projects that connect key community anchor institutions ‘ such as libraries, hospitals, community colleges, universities, and public safety institutions’.
As Connected Planet.com points out, the separation will enable the two agencies to follow their traditional and tested methods, rather than spending time trying to agree on new, combined practises. First round applicants may face confusion though, over whether to wait for the result of their existing proposal, or bid again in round two (and if so, with which agency?) Applications are due by March 15 and winners will be announced by the end of September. A third round is also possible next year.
As we have analyzed before, the first round of broadband stimulus funds applications in the US has been dominated by broadband wireless schemes for rural access, the majority WiMAX-based, and by fiber schemes. But there is also a role for satellite that should not be discounted. In round one, satellite equipment and leasing supplier EchoStar was a partner in one of the largest scale projects seeking federal stimulus money, looking to add to its web of partnerships to extend its reach ‘ and the usage of its satellites and kit – into the whole quad play.
It is looking for one of the largest single awards, $483m, and would create a joint venture between EchoStar and ViaSat, whose satellite (and two-way satellite communication system based on the Docsis standard) underpins many rural services like WildBlue’s in the US. This in turn has reseller agreements with EchoStar as well as AT&T and DirecTV (the satellite TV rival to Dish Network, a spin-off from EchoStar itself). Interestingly, EchoStar is separately teaming up with WildBlue in a project called EchoBlue Rural, which is applying for $530m in grants and loans, and would make use of the additional satellite capacity proposed by the EchoStar-ViaSat plan.
This partnership wants to build and launch a satellite capable of 8-10Mbps. The JV would invest between $36m and $114m itself in launching the new satellite, which would be additional to one already commissioned by ViaSat. Both would then be harnessed to the project, to reach vulnerable populations and critical institutional sites supporting remote, rural, unserved, nderserved, fixed and mobile users. ViaSat and EchoStar say they would offer a ‘Lifeline’ service of just 1Mbps at just $8.75 a month so that local homes and businesses could at least join the internet world and download HTML pages.
EchoBlue Rural would tap into this to accelerate its roll-out and expand its coverage in the region targeted by ViaSat – all or parts of 20 states west of the Mississippi River, an area where 4.6m households have no broadband, in the Plains, the Rocky Mountains, Great Basin and Desert Southwest states, as well as interior parts of California, Oregon and Washington. EchoBlue’s application calls for the use of spot beams from existing satellites to create an affordably priced satellite broadband service at 10Mbps which would reach 1.5m consumers within the contiguous 48 states.