The telecommunications industry is abuzz with speculations about the recently passed US Broadband Stimulus package. The package includes $7.2 billion dollars for broadband projects in the US and targets rural and underserved communities as prime benefactors of the funding. The monies are being allocated through the US Department of Agriculture Rural Utilities Service (RUS) and the National Telecommunications Information Administration (NTIA). Both agencies still need to define the parameters of their programs and develop applications and application processes, They'll need to do this quickly since all RUS funds must be allocated by September 30 of this year, and all NTIA funds must be allocated by September, 2010. This is expected to be a monumental task considering RUS grants and loans in previous years amounted to about 1% of the 2.5 billion that is now on their plates! Applicants for the RUS funding should be ready to file by May 1.

The NTIA has received $4.7 billion with at least $4.35 billion for broadband technology opportunities. While this is completely in the form of grants, much of it may be given directly to states or be transferred to the FCC for purposes of developing a national broadband plan.

The NTIA will begin to have meetings with outside parties interested in these grants beginning March 2. A joint RUS, FCC and NTIA public meeting is also schedule for March 10. All awardees must comply with non-discrimination and network interconnection obligations and the FCC's network neutrality guidelines.

RUS has a long history in lending and awarding grants for infrastructure programs and has a low default track record. For RUS, the stimulus funding - in the form of grants, loans and loan guarantees - will target projects where 75% of the access area is rural that does not currently have access to high-speed broadband service.

How Telco Systems can help

With a complete FTTH access solution that is already RUS-approved, Telco Systems is well positioned to help you specify equipment to support a fiber-based infrastructure that meets the guidelines set forth by the Broadband Stimulus package. Our FTTH solution is standards-based to deliver up to 1Gbps of bandwidth. These products are field-proven, offering a triple-play solution for both residential and SOHO deployments. If you have questions about the provisions of the Broadband Stimulus Package, or Telco Systems products that can be specified in your plans, feel free to contact our FTTH expert toll-free at 1-888-732-7557, or email at FTTHexpert@telco.com