Transparency Dies. Broadbandlawyer Lives.

There's a whole lotta lobbying going on down at the FCC.

They might as well replace the front doors with a revolving one.

It should be interesting to see how this Net Neutrality or Open Internet, depending on your preference or leaning, pans out.

I tell you one thing, it's a lot like the DREAM Act bill, the repeal of Don't Ask Don't Tell, the START Treaty and this Middle Class Tax mess. I don't think that is a secret.

If it doesn't get resolved by the end of this year, it's going to get murkier and murkier come January.

Let's just say the opportunities for the Free Birds are fleeting fast. Catch what you can!

She. He. It. Lives.

In Broadband Stimulus world, there's buzz and loose lips yapping about possible lawsuits against the administration of the funding.

Keeping my ears to the ground as it develops.

the numbers game

i have tweeted, blogged and stated this before...

but i cannot reinforce strong enough that the secret to a strong application is in the numbers.

in addition to having at least 30% matching funds and a letter(s) from actual funders that will underwrite that 30+%, it is key to make sure your numbers presented on the financial portion of your application show that the project will be presented and completed in the most cost-efficient manner.

this means make sure you apportion costs so that most of the project budget will be used to support the most direct elements of the project. tangential and indirect costs can come from your working capital expenditures that will NOT be part of the funds requested from the government.

this brings us to the topic of taxes. the last communication i received from an inside source indicated that there is no certainty EVEN NOW that the grant funds from btop and bip will be exempt from taxes. the source's team was only able to get a speculative and not a definitive yes or no on the tax issue, even in spite of the IRS guidance which many agreed still left some holes and questions outstanding. worrisome, yes?

the source expressed frustration because s/he is deep in the middle of negotiating the final stages of funding and/or applying for round 2, depending on how everything pans out.

as all those who are checking and double checking their numbers right now leading up to the deadline this friday should know, it's important to know now and not later whether some of the budget will be used to pay taxes or not.

for a multimillion dollar project, the portion of the budget used to paying taxes can DEFINITELY affect the provisioning of service, the build out and definitely the bottom line.

what is a weary-eyed, exhausted project grantee or applicant to do? err on the side of caution and in the abundance of caution, i would say prepare for the possible situation when it will be determined (maybe later) that your grant would be subject to federal taxation.

best be safe than sorry. that is my motto. well, it's really my grandpop's motto, but i asked and he said i can share it with you all.

jokes! i got jokes this afternoon, ladies and gentlemen!

good luck! happy applying!

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oh and another thing, i think broadbandlawyer got hacked when i wasn't looking. whoever it is trying to dig in my digs, CUT IT OUT! if you ask nicely, i can give you a piece of my blog space. manners, people. ha!

Scoops! Get your Scoops here!

Ice cream for breakfast anyone?

(Suspend belief that I am on the East coast and submitting this in the afternoon. This post is still breakfast for those in the Midwest and on the West coast and in Hawaii! ha!)

Here you go in a nutshell: the latest insider info coming out of the mad warehouse:

Broadband Stimulus.

Aaaah! As you 2,000 or so unfunded applicants and newbie applicants scramble to assemble your Round 2 applications, take some time to pour out some libation in memorium of the over 150 Round 1 due diligence applicants that are STILL sitting in limbo.

Yup, those fortunate few, once the envy of all the under and unfunded applicants are being/have been told to REAPPLY in Round 2. For some reason or another (don't ask them why because, like you, they too have NOT BEEN TOLD) their application was not deemed good enough to push them over the hump and actually get funded.

There are 22 such BTOP applicants and 130 BIP applicants that are not rejected, yet not funded either. Let's call these "The Lost Boys" (in memory of the late 1/2 of the Two Coreys: Corey Haim.).

You would think being told to re-file would be simple enough, right? Not so much as many of you re-filing should know by now, the refocus and shift in priorities, and even the application requirements itself , are making it not so easy. Some of these folks were told to refile and given 2 short weeks to fix up whatever was not good enough with their last application and re-apply in this round with the rest of the lot. Who knows if they will even be given a priority.

You wouldn't care so much unless you had decided to forgo applying to cover an area proposed by one of these Round 1 due diligence applicants. You probably presumed they'd eventually be funded so you'd better not even bother loop those areas in your application. Now you know you really could've done so. So you too, errant speculator, are also getting the shaft by this misapplication of administrative processing.

True, so far all of those that past on to due diligence have gotten funded, but there is no guarantee that these "Lost Boys" will too. Even the NTIA and RUS said so.

Finally, since all of this was for the residents and businesses in the unserved and underserved areas, what happens at the end of round 2 when they still don't have sufficient or any broadband options? Simply because of this overlap? Those folks will be the real losers in all this, now wouldn't they? 'Tis a bloody shame, yes.

To recap, there are:

BTOP: 28 due diligence applications still waiting on funding or rejection
BIP: 124 due diligence applicants still waiting on funding or rejection

TOTAL: 152 <--That's a whole lot of Lost Boys. Here's to hoping the Lost Boys find their way because Lord knows we have enough Vampires running around from that annoying Twilight saga. Cheers!

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Leveraging of Broadband Stimulus Funding.

I would imagine that those in the business of speculating on whether or not and to what extent to invest in and provide private equity support to BTOP and BIP projects really need to know whether the investment would be worth the effort and mullah. Granted these financiers take risks as are the applicants in going through all this process in the first place, and heck even the government that these ambitious projects will take off and indeed bridge the Broadband gap and get more Americans connected. Whatever it takes, we are all hedging bets that this effort will enable us, as a nation, to climb the ladder a rung or two and maybe even surpass the so-called "Third World" or developing nations that are ahead of the US in terms of Broadband deployment.

This weekend, I got a response to a lengthy query from an investor who is eager to learn how, if at all, the government plans on leveraging the total funds allocated to the broadband stimulus. The answer I received was this:

The exact amount of leveraging will not be known until the end of round 2 and will be based on the total amount of loans and grants that are approved.

I tweeted that but what I left out was the part about how the final leveraged amount is dictated by Congress...in the ARRA. So there is a clue there. Read between the lines in the enabling legislation, that is ARRA, and you will find additional insight into how it may be done. (Don't make ME have to do it for you. Not getting paid enough for all that. ha!)

I also think it would be worth it looking at the Farm Bill and looking at how those funds (loans and grants) have been treated. It can safely be assumed that a similar process and formula would be used here as well. Good luck! Happy speculating!

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The National Broadband Plan.

I also got a chance to get a sneak peek at the essence of the National Broadband Plan slated for release tomorrow.

The Wireless Industry is a winner:

I am obviously not the only one to get a copy of leaked pieces of the plan as there are several journalists and media outlets giving out clues in their publications. The latest came from Businessweek which published a story this morning headlining that AT&T, Verizon, Google May Be Winners in U.S. Broadband Plan. The wireless industry clearly comes out on top the biggest! Why?

The FCC will propose that the Broadcasters give back some of their analog spectrum that they've been holding onto for dear life. In exchange, the government will give them a cut in on the action after the FCC re-auctions that spectrum.

Those that sell to the wireless industry are in the running to fare well, the article says. I agree. The spectrum has nearly dried up and we clearly need more with these smart phones becoming even smarter and with folks like Apple and Dell coming out with portable pads, and 4G and 5G devices, applications and programs sopping and demanding even more bandwidth and spectrum.

Further, there is encouragement on creative and innovative uses of the unlicensed spectrum so wi-max, wi-fi, mesh technology products and service providers will also be in the running to maximize new opportunities. I'm not sure if there will be more regulation, but I think there will be a freeing up of uses of the unlicensed spectrum as well as a widening of options for it.

The little guys will be winners.

Disability Community - There will be laws, policy and practical forums and steps to assist the disability community get broadband access, and skills necessary to take advantage of it. So if you are a manufacturer or supplier of goods and services to that industry, you should be poised to do okay. This is good for the disability community as well, of course.

Small Businesses - There are nuggets in there to help fund, train and provide other resources to get small business IT and broadband systems up to par so they can compete. Excellent news for most of my clients which are small businesses!

Native Americans can expect a separate funding for broadband on reservations and other efforts to encourage deployment, training and adoption. So if you haven't gotten funding through the BTOP/BIP for your Tribal project, there may be some additional funding out there for you to apply for via this new initiative.

Lawyers, analysts, lobbyists and policy thinking and talking heads will be winners.

With an estimated 40+ NPRMs and NOIs slated to come out after this plan is released (not to mention additional legislation from Congress and regulations from sister agencies), folks like me and my friends are in the running to do well helping clients figure it out and make sure their respective interests are protected and represented. There will be so much in-fighting because as you can imagine there will be folks on both sides of each issue all elbowing to stay ahead and afloat.

Talk about stimulus funding. At least some out-of-work attorneys may get some good work out of this. (and believe me, in this economy, the lawyer pool is flooded with many great unemployed talent)

That's all I got for now. All of it may be madness, but at least it makes life interesting for me at least, whose favorite ice cream flavor is Vanilla, of all things!

The MATRIX - 5 thoughts on the BTOP/BIP mystery

I bet some of you are begging to be unplugged from the Matrix at this point as you scramble about trying to put together the best possible Round 2 Application you can in this very short window of time .

Well I have been told that I have been conspicuously silent amidst the melee (better known as utter BS) that has been ensuing these past few weeks.

Alas, I have awoken from my slumber (that is work for clients) to submit my two cents (for what it's worth) on recent events. My unapologetic brash take on things:

1. First, the denial to extend the deadline beyond March 15. Well just when you thought you couldn't get screwed even further by this process, we get this news that despite the fact that some of you got your rejection letters only recently and some not at all, you STILL have just a little over TWO WEEKS to prep and file your application. This is rubbish on several levels; the most obvious being that now that the government got rid of some of the ridiculous unrealistic and unreasonable requirements and definitions, you better believe there will be a very very strong pool of applicants competing for the same money this Round. I predict an increase in applications because you've got the losers from Round 1 and then those who had the luxury or foresight to sit by and watch the madness on the sidelines, learning all the while from our mistakes. All of these guys will be in this FINAL ROUND. It's not ironic that the deadline is on the Ides of March because there will indeed be many running to the death to get their applications done in time. I pity the fools...wait, I think I am one of those fools. Never mind. Just call me Titus. Beware of the ides of March, Ceasars.

2. Not getting sufficient info as to the reason for the denial. Again, how the heck is somebody or some entity supposed to fix whatever thing was wrong with their application if you don't provide ample reasoning as to what was wrong? This isn't rocket science. Heck, this isn't Rocks for Jocks Geology science. But I tell ya what, Just quit your complaining because you won't get a better answer. EVER. Stop waiting for it and get to cracking on your application already. The reason? The government given this practically insurmountable task didn't know the hell what it wanted either. So that being said, a good chunk of folks were set up for failure from the get go. I think those stupid maps and that unserved standard was to blame. People have got to realize that this entire process was a trial and error experiment for the government too. Agencies not used to dispersing this amount of cash to this many people over a short period of time were asked to perform a miracle on this one. Yeah they've messed up and messed up often, but I think we've got to cut them some slack and realize what they were up against. I have noticed that many have moved on. Let's catch up with them, shall we?

3. On landlines getting more grants than wireless and satellites and other nontraditional broadband transmission services. I am not surprised one bit. The problem though is that traditional fiber and terrestrial based projects are not QUICK to deply and wasn't one of the purposes of this all to quickly get folks connected? I imagine there will be indeed plenty of jobs created by folks having to dig trenches to start or complete a fiber ring. In the end of the day, all those wireless, broadband by powerlines, satellite and other transmission projects must realize that those mechanisms for getting broadband to the underserved and unserved are not as reliable, tested as down home wireline. So...it's not right but I think the government may have been playing it safe here in not wanting to pass out taxpayer dollars to unchartered territories that way. I don't think it's right because there are lots of innovation, creativity and unique platforms out there that I think would definitely work. Then, when you are talking for rural areas, wired services just isn't an option. Beggars can't be choosers so while the folks in urban epicenters with legacy networks firing up their broadband may have the best access, the wireless options would have been the very next best option to getting high speed access. Over time, technology will catch up sooner than expected and the QOS (quality of service) concerns will evolve and resolve themselves over time.

4. Minority , rural and Native American tribal communities not getting funded. Well you best believe there will be plenty of uproar and complaints being made on the Hill and to the White House on this one. The minority groups have a sympathetic ear at least this go round as the President is big on opening opportunities for groups not traditionally awarded these types of grants. SO NO SDB (read minority groups) got a grant though I learned that 13 of NTIA's 30 awardees said they had SDB contractors to get that one point. Whoop dee doo! And about rural communities not being funded as much as expected, well isn't that some stuff? This entire project was for those poor blokes in the first place. I'm shaking my head on that one. Finally, the Native Americans are still getting shafted, I see. What else is new?

5. Finally, I think it's high time we quit being a bunch of winey cry babies. It is what it is and us sitting around Twittering and Blogging about the Asaniness isn't gonna change a damn thing. Really, we protested, signed petitions and we couldn't even get a frigging extension of a week even. Dang it!

I haven't gotten a chance to dig into RUS's Round 2 App yet, but I have looked into and started helping out clients applying for the BTOP program. The answer to what you need to win this round I believe lies in the BTOP's "Key Metrics Dashboard" which you can download here. Within the lines of this chart which asks for various specific details about the project is the invisible SCORE SHEET we never got to see. The difference between getting a due diligence invite or not. What BTOP asks for in this document make up nice PR soundbites for a release and report to the White House. Your answer must be impressive, but REALISTIC. I do believe some Round 1 applicants started to believe their own hype and over stated what they can accomplish in their project. All it did was make them look amateurish and not qualified to pull it off. I've been wrong before but many times more right than not so...take that advice with a grain of salt.

Me? I'm going back in the trenches and hope to surface again more frequently to share news, scoops, and other deets as I get them.

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Do you take the RED pill (See how far the rabbit hole goes) or
the BLUE (Wake up in your bed and believe whatever you want to believe)??

YOUR CHOICE FOLKS!

more non-news from RUS

from a query asking about the status of one of my clients who has not received a due diligence notice neither a rejection letter, this is what the RUS Help Desk had to say:

BIP is in the process of sending out the round 1 notification letters. There may be a delay due to the Federal Offices in Washington being closed for the past few days.

It is my understanding that these letters will be sent via mail and email.

BIP has completed the process of sending out due diligence letters.


The helpdesk can not provide the status of individual applications.

In other words, forget about it and do like Uncle Larry said and get on your Round 2 application!

I have been out of the loop, but something that struck me when I last spoke with a RUS administrator. There are other existing programs out there where each applicant is assigned with a government agent who helps the applicant modify its application if it can to meet the needs of the government and to more easier be awarded the grant.

I would like to think something similar should have been done in this case as well.

Have three piles: 1. automatic rejects for various obvious factors and none dealing with politics, but perhaps a technical reason; 2. acceptances and 3. in-betweens. those that only need minor tweaking to get them there. I think rather than throw out ordinarily good projects that perhaps need adjustments here and there, it would be better to work with these applications to get them where they need to be.

I am certain there are dozens if not hundreds of applications that fit into this category. To have these guys start over at this point seems inefficient and I imagine frustrates many to end. I am sure many are considering throwing in the towel and simply giving up.

What to do?

What questions would you ask or what guidance are you looking for going forward?

I know I have been bombarded with emails about numerous webinars being hosted by various companies looking to capitalize on the frustration and provide guidance where they can.

No one should expect to hear from the USDA, NTIA or anyone in the federal government for awhile as it has been closed all week as folks weather these series of blizzards that have blown through this region. I know I, for one, lost power and consequently heat, from a major outage in my neighborhood. Just as we cleared the driveway and started to venture out to replenish supplies, we were hit with a third and fourth storm last night and this morning!

Whew!

There's Gold in Dem There Hills!

Man, oh man! I do hope you guys have been paying attention to all the wealth of information being shared on the blogs, twitter and the websphere, in general. If not, here is a round up and I dare say a Follow Friday of epic proportions! ha! :

By now, you've probably seen NTIA's posting of all funded projects, I am sure.


Susan Estrada shared a couple of successful BTOP applications:

http://www.merit.edu/stimulus/
https://www.mcnc.org/btop

And folks have been summarizing their frustrations (I deleted an earlier permeation of mine on account of me reading it after it posting and realizing it was quite harsh - in a blame the victim - sort of way. Anyhoo, I like that folks are coming up with critical solutions and suggestions and not just blowing off steam.)

So, even though I cooled down, you can still catch ColoComLwyer rant as he gave the government quite the earful in his piece on his blog yesterday.

PJ from StimulatingBroadband.com stepped out of his traditional neutral journalism role to dole out some advice for tackling the government's mishandling of the Broadband Stimulus roll out.

It was so moving that it stimulated (get it Stimulating broadband?) Susan Estrada to urge her readers on her blog to join the effort and write your Congressmen/women to help change the broken system.

And I am heartened to see folks cluing us all in and sharing their inside knowledge.


While you're scrambling to refile, some of the folks who've been around us guiding us all through the anxious "waiting game" these past months are trying to help out in the next round, alas Broadband Stimulus Craig Settles Successful.com is offering assistance. As is WirelessScott whose company AspenWireless helped some of his clients get funded. Recall, he was one of the first persons boasting keeping us abreast as to what his winning client was going through as it was going through the award grant process. Not sure who's behind this company, but Keenwire too is offering to review applications for a flat rate. whew! I wonder how "flat" is flat?

JamesMardis shared his tweets from watching the latest oversight hearing for those of us too busy to tune in at that moment, but could easily monitor tweets from the middle of a meeting. Thanks James.

RahulG a reporter for BroadbandCensus.com is gathering questions to take to the FCC for the next BroadbandCensus.com breakfast and I assume to actually take to the FCC for an answer. I left mine. You should too.

WilkinsonBarkerKnauer tweeted the pdf to the Federal Register notice publication of the NOFA II and has been keeping us up to date on all the scheduled hearings and workshops.

Apart from moderating a very useful Broadband Stimulus LinkedIn group, JenniferHoltz has been sharing lots of good info via her Twitter page.

As has been the always on top of things BroadbandAccess guy, Michael Smith who has an eerie knack of knowing information from NTIA and RUS and giving us the heads up as the info is released.

Occamnetworks has been providing its insight along the way as well on its BBStim blog and recently tweeted live and direct from its BBSTim webinar.

The Benton Foundation has been an excellent source of Communications news from around the nation.

As usual, Geoff Daily is never shy about sharing his predictions and suggestions on the BBStim issue and other network policy issues on his very poignant App-Rising blog

OneCommunity chronicles and reports the Broadband Headlines of the day.

and by All means follow GrantGros, the reporter who I had my first Internet "beef" would. I feel like I have some street "cred" now. He tweets links to stories on communications and broadband each week that he writes for ComputerWorld, IDG News Service and PC World.

And while you're at it, you might as well check out the adoption efforts of the BroadbandForAmerica coalition of industry companies and groups. The Broadband4Us twitter stream usually has good nuggets of info as well.

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edited to add:

Check out the Wireless Cowboys blog at http://www.wirelesscowboys.com/ which is full of good wireless ISP stories about delivering broadband in rural areas. The series on Medicine Bow, Wyoming is an appropriate one for anyone wanting to find out about delivering broadband to really rural areas.

Thanks matt!

Who did I miss?

leveraging Round 2 Funding

I got this question in my inbox and I have the cohones to admit I do not have any clue. I looked at the NOFA and was left scratching my head because it wasn't clear nor really spoke to the issue. I haveasked around, but the answer seems to be something I will have to call up my good friend Jessica Zufolo from RUS on...in the meantime, I will leave it here in case anyone comes up with the answer before she calls me back

The RUS has consistently talked about leveraging the money 7:1 for loans, but they have never really explicitly reconciled this with their funding pronouncements. Any ideas?

I think the answer may lie with those who have gotten funding via the other RUS programs like those created via the Farm Bill. However, it is done with those programs, I assume is the way it will be done under RUS. Will get back atchya feller. Hold tight!

out, but not down...

...someone emailed me asking if this blog was shut down. (i'm certain he was joking).

not down, just overwhelemed at the moment with various client projects, that is all.

unfortunately, none of my clients passed to due diligence so needless to say I have been recruited to ascertain whether they should file a second time.

this is eating up much of my time, thus it means little time to update this blog.

i am keeping up to date with the Twitter buzz and am actively participating over there.

...just not here.

soon. hopefully. soon. like the Kung Fu masters says, "Patience Grasshopper"

so i lied...

...i am too deep in a current client project to tend to my loyal followers...all 6 of yous! ha!

I am hopeful after a couple of high pressure deadlines get met this week that I will be able to come up for air and reconnect, but in the meantime, I am liking what Craig Settles has to say in his analysis of the NoFAs which I am linking here! His detailed plan of action tackling your Round 2 application is EXCELLENT! CHECK It out here!

In response to his question on whether satellites should get remaining stimulus money in the end if communities are still unserved after all the awards are given out, I remind him and everyone out there that some terrain just cannot be penetrated. I mean if Osama Bin Laden can send a message in the mountains of Afghanistan and Pakistan using satellite why can't Molly Pocket in boondocks West Virginia. If satellite is the only means of getting broadband access (even if it isn't the best way), so be it and I say better some access than no access.

I also agree with Settles' last assessment in one of his posts:

Those of you in the middle of Round 1 who haven’t been called in for due diligence? You may want to consider packing it in and looking at NOFA 2. Since the rules and requirements have been streamlined in some important areas, you may not be looking at that much work to prepare a new application. Besides, your original proposal’s still on the table and you could get that last-minute call.

I say the new NoFAs appear less convoluted than the first one and time should be spent re-crafting the old Round 1 apps into a cleaner, crisper and more responsive application. I agree it couldn't hurt. You've already have your knees, feet and hands deep in all this stuff, might as well stay the course. Good luck!

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also...

By now, you know that I was quick on the draw again with another prediction, this time alerting the Tweeps of today's announcement of new grants awards.

Also, the way the grants were announced also confirms another past prediction -- that most future announcements will not be done with the same fanfare as the initial awards. Also, as I also predicted (based on the buzz in my ear), the NTIA & RUS's with their separate NoFAs and announcements, have indeed divorced. I guess counseling didn't work.

I foresee a new career as a Broadband Soothsayer in my future. Hahahaha! I crack myself up!

rage against the machine

shhhh....you hear that?

the crescendo that is building?

it's the collective roar of frustration that is about to erupt...

it's coming from thousands of applicants who have put aside business plans, and other priorities chasing a piece of the broadband pie...

...and just as they think they've got it all figured out, they're told to maybe hedge bets that they WON'T be funded and to go back to the drawing board, reconfigure, reorganize, re-prioritize, fix what may or may not be broken and come again.

I am knee deep in NoFAs and answering many queries and concerns from clients and Broadbandlawyer followers.

I'm going to regroup and get back to you good people in a few short hours.

like my good pretend friend, Bill Clinton, once said, "I feel your pain."

from the Horse's mouth

Good news!!


Update folks:

This is what the RUS contact informed me and I quote:

BIP is in the process of finishing up with Round 2. ( I think she means Step 2. Due Diligence)

There may be a few more invites sent out.

I have a full plate today and cannot comment much, but wanted to at least share that tidbit of news as promised. Cheers!

...end of the Road.

...I'm sad to have to pull out my old vinyl of that Boyz II Men remake of "End of the Road" but a very reliable source just informed me that the gig is up.

I was told that all those who are to be invited to the due diligence round should have already received notification.

I do hope/wish that isn't the case for so many of the great applications out there, but if it is, there will be many people upset in a week or so when they get their rejection letters.

Tough going. This is one time I am hoping my source is not right.

Edited to add: the source of the information was referencing NTIA so all may not be for naught at RUS.

The Money Grab

It looks like some people are trying to capitalize on the frustration some are feeling over not getting word yet that their projects will get funded and are going after desperate folks with Broadband Stimulus Grant in a Box kits. Check this out:

BTOP Grant Application Support Package

I'm all for capitalism (even though this looks like a Chinese company) and I wouldn't knock another man's hustle, BUT and that's a Big BUT, at what point does this smack in the face of the purpose of the grants and turns to an unadulterated money grab?

Are all the consultants, equity seekers, attorneys and analysts who are advising applicants going after their cut in the money grab and looking for their big pay day as well? After all, the government permits a good percentage (EDITED to add the words "up to" 5%) of the funds to go towards professional consultancy fees which include grant writers.

[EDITED TO ADD based on an email I received, you are not at all obligated to surrender 5% of your grant money. The government simply permits you to use up to 5% of the grant funding to pay for invoices for services that accrued from the day the application was released until your application is completed. By all means, it is NOT A CONTINGENCY. There is a presumption that you should have paid bill in advance, but to the extent you have an outstanding balance, you are permitted to use award funds to pay towards that balance that consultants, attorneys and engineers charged for their services. Sorry to confuse. See Below*]

What percentage of those waiting for funding are truly eager to getting word that their work will start to get America back on track to being a competitive force in the broadband world and connecting unserved and underserved populations of this great nation and what percentage is just waiting for their cut in the stimulus funding?

It boggles the mind. I suppose it doesn't help that I've had to listen to independent radio for a client project I am currently working on... Much of the rhetoric being espoused is couched in between segments of people cursing the government for taking tax payer dollars and distributing them among various projects they don't approve of and for making private industry and their lawyers and consultants rich.

Are the consultants guiding applicants just as guilty as the Grant-in-a-box guys?

I'm thinking............................. HELL NO! It takes a lot of energy and work to pull this stuff together. I, for one, know what my team went through on behalf of my clients. That is certain.

As all of us watching the stimulus funding know, the ideal project is still an enigma to the administrators themselves. All this has been a trial and error process for them too - these uncharted waters they find themselves in. How the heck are these bozos pushing a one size fit all package thinking this is the solution? (though I would give them that it is a crisp organized tool for presentation purposes)

However, at this point, I think you'd need three college degrees including a doctorate in economics, an engineer Master's degree, a JD and not to mention a little bit of clairvoyance and mind reading capabilities to know what it takes to put together THE perfect grant application.

And even then, you'd offshoot by a mile if your application did not include top experienced management team with an impressive background and track history for success.

Again, there is a big BIG BIG fear from the grant administrators of funding projects with so-called new companies with no experience in managing big projects. The administration does NOT want any failures to come back and bite them in the ass.

I think that is also the reason behind the hesitancy to fund private companies with no public government party partners. After all, the government is supposed to be looking after its constituents and is presumed to not sell out its citizens in favor of large executive bonuses. The idea of being seen as doling out tax dollars to support a private company's bottom line scares the begeezus out of some of these administrators. To be honest, I do think some private companies were arrogant in thinking local and state governments had/have no clue how to run broadband and weren't worthy of soliciting for partnership. Maybe, they will have the last laugh in the end. Who knows. I digress...

Again, soooo unless this package was formulated via a carbon copy of a winning grant, I'm thinking a plug-in approach won't cut it! Nice try. Come again. I do hope no one is so desperate enough to try and get around hiring a top notched experience consultancy team to resort to something like this...

You know what they say, "desperate times call for desperate measures"

The answer is to be patient and not wave the white flag until...oh...two -three more weeks when you will know for sure if your project will get funded or not. Then PANIC!

(just kidding...if not funded, the answer, if you can bear it will be to learn lessons from those that did get funded, start over and hire one of the great experienced people who will be able to read the tea leaves and get you there.)


* Section D.2.(a)(iii) of the NOFA permit fund dollars to be used

"To fund reasonable pre-application expenses in an amount not
to exceed five percent of the award. Pre-application expenses may be
reimbursed if they are incurred after the publication date of this NOFA
and prior to the date on which the application is submitted to RUS or
NTIA;"

---

Sources say....

Boy, did we take off running since we came off the holidays. I am truly pleasantly amazed at the recent discourse that has been going on in the Blogsphere and Twitterverse lately. Everyone's abuzz with suggestions, predictions, prescriptions, and speculation.

All's back in play too over in Broadbandlawyer world. My NTIA and RUS sources are also back on the grind and feeding me some info that inquiring minds want to know.

First up, the NTIA:

Earlier this week, I tweeted that announcements were imminent within days. It turns out the source was privy to preparations being made to hand out new awards. Alas, there indeed HAVE BEEN DECISIONS made to fund additional projects that have gone through the due diligence stage. However, my source is not certain whether the individual applicants are being notified privately or if there is an effort within NTIA to gather and amass as many approvals as possible before making the next big announcement.

[Time out for commentary: I think perhaps the NTIA is feeling the pressure to fund larger projects and many more of them that will create more jobs than these smaller grantees from the original 18 will be able to generate. Also, with over 2,000 applicants, it will be really looked down upon if they crank out a small number AGAIN. These agencies have a tough task, but they have to step up their game.]

The source said the due diligence process is thorough and detailed and s/he thought maybe a little too much as the extra time is causing the delay. I do recall reading a tweet from that guru consultant Craig Settles mentioning that one of his clients had gone through three rounds of due diligence.

[Time out for commentary: Again, I think since Mr. Strickling announced that the NTIA will NOT fund a BAD project, the pressure is on to make sure that everything is verified. As we have seen in the trade press, there is already criticism that the initial grantees may be too small and inexperienced to pull off what they say they will in their applications. There is a big the fear of funding a project that doesn't create sufficient jobs, is managed poorly or squanders all the funds. Hence, the extra scrutiny. Also, incumbent challengers seemed to have succeeded in slowing down the process, at least, because there is more work for field workers out there verifying broadband coverage. I am still not certain that awardees that were challenged aren't going to be the subject of lawsuits and other complaints as we've seen happen in Maine where legislation was initiated to "defund" a project awarded a grant with the University of Maine. ]

Finally, the source said s/he was unsure if there will be a major announcement of the awardees later, even if some or all are contacted and notified they will be funded.

[Time out for commentary: I think if the NTIA elects to do a major announcement, it will come within the next two weeks. By then, I think the final due diligence invitations will be sent as well. With the current trend and NOFA as a guidance, the due diligence process will take a minimum of 30 days to complete and if both agencies are thinking of finishing up the Round 1 awards by the end of February, any grant seeker hoping to be funded should have been invited to the due diligence round within the next two weeks.]


Now for RUS:

I got a response from my contact with RUS asking specifically on behalf of my clients who are yet to get due diligence letters for access to whoever it is working specifically on their application.

Negative! Nope. Too many applicants to share that. There are no "field" officer assigned to the projects she said.

Hmmm. Okay. Then I asked about the timing. Should these guys start throwing in the towel, shifting their priorities or prepare for round two. Certainly, they'd need to know if they will pass due diligence before making these decisions and it is not fair to them that the agency's delay is costing all these companies valuable resources that could be going to other efforts.

To that question, I got this answer:




*crickets*



No worries. I sent a follow up and will call this afternoon to press further. Hopefully, she is out fetching a response and I will hear back soon.

Nonetheless, I think Administrator Anna Gomez reply during the CES as reported by Steve Blum indicated that NTIA, and by default RUS also, are aiming to get the final awards announced by the time the next round applications are due.

---

My assessment:

For all of this news, I think the writing is on the wall if you are a Round 1 applicant who has NOT yet been invited to the due diligence. The project may or may not be in the last rounds of announcements. (I predict two more major announcements) However, I also agree with others' assessments that it is best to prepare for the next round, just in case. Well, that is if you have the stomach to be jerked around longer.

It's good to be cautiously optimistic, but at least as a precautionary measure, it may be a good idea to take a second and CRITICAL look at your application and examine what it lacks and compare it to the projects funded and to the ones to be announced soon. With just 18 projects funded, it may have been difficult to spot any trends, per se, as 18 is such a small sample.

However, I do believe there are clues and several of the analysts and BBSTIM watchers have done excellent jobs with these trend predictions. NTIA Administrator Ana Gomez praised the NGN project as a pretty good standard for middle mile project, falling short of saying go forth and copy that model.

Maybe there are some minor items that need tweaking. If you did a multi-jurisdictional application, maybe you want to scale back and focus on one region to make sure your data is accurate. (Recall, there were some states that outright threw out applications for consideration to be prioritized if the applicant proposed to serve other states than their own. ) If you lacked sufficient public and anchor institution endorsement or partners, maybe start seeking out some more to sign up and start with that new tool just announced this week. Maybe you didn't get prioritized by your state, perhaps a call or meeting with state and local decision makers is warranted. Maybe you relied on maps or analytical data that was flawed and you know the flaws and what to do to tweak it. Here's the time to tweak. Perhaps, you proposed to serve an unserved area without thoroughly verifying that the area is indeed unserved, it may be a good time to do a double check. In short, there's no reason to just rest and wait for the news, be it good or bad.

That's it for me. I only have a few more hours in the work day to be productive and stop all this gossiping. There. I admit it. This may be just a gossip blog after all.

yup! This sums it up

This guy says it all!

Commentary from Forbes.com
Broadband Stimulus Lacks Bandwidth
Daniel Hays 01.06.10, 9:00 AM ET

The federal government's announcement of the first broadband stimulus awards is a terrific first step in extending the reach of broadband communications across the United States. However, the Department of Commerce's National Telecommunications Information Administration (NTIA) and the Department of Agriculture's Rural Utilities Service (RUS) need to pick up the pace in awarding broadband stimulus funds, and take additional steps to ensure program dollars are deployed with maximum efficiency and impact.

Despite significant interest from public and private entities in all 50 states, so far only 18 of 2,200 first-round applicants have received awards. That's a total of only $183 million, barely 2.5% of the $7.2 billion in funds allocated for broadband in the February 2009 American Recovery and Reinvestment Act. This is particularly surprising, as first-round applicants prepared requests for more than $28 billion in grants, loans and matching funds--more than 10 times the amount available. Moreover, the recipients did not include some of the largest, most impactful and most sustainable proposals.

At this pace, the awards will not only fail to achieve their stated purpose to expand broadband access to unserved and underserved communities across the U.S., they will also lag significantly in their related goals to create new jobs, generate investments in technology and infrastructure and provide long-term economic benefits. Even if the government achieves its revised milestone of distributing all additional first round awards by the end of February, it may well be too late to have a significant impact.

My firm, PRTM, has worked with public and private organizations to plan for and implement successful broadband networks since the early days of broadband technologies and businesses. Based on hundreds of such projects worldwide, we see three critical gaps in the government's current approach.

Lack of a Clear and Cohesive Broadband Strategy. While the Recovery Act's funding of broadband stimulus projects is admirable, the overall broadband program lacks direction and strategy. The U.S. needs a broadband strategy that addresses public need and key market opportunities, aligns economic benefits and costs and provides a road map for developing the necessary technology solutions. Although the Federal Communications Commission recently started work on a National Broadband Plan, the basic strategic framework is not yet in place. This is critical for guiding subsequent rounds of broadband stimulus awards, and for avoiding significant misalignment and waste.

No Clear Criteria for Prioritizing and Funding Projects. Broadband stimulus applicants face a dizzying array of questions during the applications process but have precious little insight into how their applications will actually be evaluated. In commercial environments, such projects are routinely evaluated on clear criteria such as return on the proposed investment, size of the potential market and alignment with the business strategy. No such measures exist for the broadband stimulus program, however, causing applicants to aim blindly while they assemble up to 500 pages of supporting information per application. The evaluation process needs much greater transparency, as well as a simpler approach that will speed up the distribution of awards to recipients.

High-Risk Approach to Ensuring Efficient and Effective Deployment. Perhaps the greatest risk to the success of the broadband stimulus is posed by the challenge of ensuring the awarded funds lead to new jobs, enhanced broadband access and sustained economic impact. To date, the majority of awards have been small, averaging just over $10 million apiece. These are unlikely to create the types of economies of scale that would normally be desired in broadband programs. Furthermore, the awards are often going to organizations with minimal track records of successful deployment and operational performance. Applicants will need to access significant capabilities in network deployment management, operational scale-up and market launches. For the broadband stimulus program to succeed, these organizations will need substantial help, or risk failing in large numbers like past program participants.

The RUS and NTIA face great challenges in administering and ensuring the successful completion of the broadband stimulus program. Likewise, the recipients of the broadband stimulus awards face similar or perhaps even greater,obstacles in building successful and sustainable broadband businesses. As we approach the next round of awards, more than $7.2 billion is at stake. With new jobs, wider broadband access and continued economic competitiveness hanging in the balance, this is an opportunity we cannot afford to lose.

Daniel Hays is a director of PRTM, a global management consulting firm. He is based in its Washington, D.C., office and can be reached at dhays@prtm.com.

of POTS and Pans

"i am not my mother's keeper" (mother=Ma bell)

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AT&T is saying, in its comments on the FCC National Broadband docket, that it needs to shut down the PSTN (public switched telephone network) in order to divert resources used to maintain POTS (plain old telephone service) onto efforts to expand its national broadband network. I believe in the free market economy.

Instead of shutting it down and disconnecting millions from communications with others, why doesn't AT&T just sell off that part of its business to someone who will happily take it off its hands?

Someone pointed out that it is all a smokescreen, e.g. a convenient excuse for not wiring rural areas with broadband. Perhaps. Others have pointed out that it may be a strategy for manipulating the intercarrier compensation rules or easing out of some of the Universal Service Fund obligations.

Madness!

PSTN and POTs aren't going anywhere soon as this US of A is NO where close to being ready to transition away from the stable, secure, infrastructure and institution that is landline telephone service which took blood sweat and tears to install, underground, where the wind can't blow it away!

I, for one, am not looking forward to having to resort to blowing smoke signals to communicate with the outside world in the event of a national disaster and I'm stuck, like after the wireless towers and transmitters have fallen to the ground and the battery in my VoIP phone finally dies the 7th day without electricity. No sir. The last man standing will be the one with a terrestrial traditional Ma Bell telephone service or the dude with the satellite phone and who other than Bin Laden operatives in the mountains of Afghanistan owns a friggin satellite phone?

To say the country is ready to navigate to a 100% broadband telecommunications network that relies on wireless signals and a nascent network of fiber that needs electricity to operate at the end user's residence is premature at best.

Wasn't it Judge Green who said "give me landline telephone service or give me death?"

back at it!

Happy New Year all!

Are we ready to get back into the swing of broadband stimulus funding watching? All has been quiet on the war front as of late, no?

I know I for one am eager to return to work, though I may have a few more items on my plate that may prohibit me from being the pesky agitator that I have grown to become and love becoming as of late.

On tap this week:

1. Wait patiently (which is not long for me) for a response to my queries before the holidays, then follow up with a phone call for some answers.

After then, I hope to have some insight or clues as to when to expect the next round of announcements. As usual, I am sure to share with the few of you who come to visit me occasionally.

2. Continue to scour for a good summary of the RFI comments. I am sure some associate(s) at some big AMLAW 100 firm have put one together. Now getting my grips on one is another story, altogether.

I am willing to exchange some wicked PowerPoint presentations about various Broadband Stimulus related stuff in exchange for a good summary I can post here. Any takers? Consider this my unsolicited offer for a fair trade.

3. Continue to engage the high level policy thinkers and makers I come in contact with for some additional clues on the status of this rollout

4. Sleep. Eat. Repeat.

That's all folks!

Oh and another thing, who else has started to get inquiries and solicitations from investors? I know most people have been getting pitches from manufacturers, installers and service subcontractors and support companies, but as of late, I've learned that some hedge funds, private equity folks and investment brokers have been reaching out to applicants --not just winners.

Isn't that interesting...