Applicants Could Use Land, Spectrum for 20% Capital Expenditure, Says Panelist
The 20 percent capital expenditure contribution requirement for broadband stimulus applicants will likely include non-cash contributions, such as a spectrum license, land and rights-of-way, said consultant Coleman Bazelon. The principal of the Brattle Group, spoke on a webinar sponsored by that consulting company, the Rural Telecommunications Group and Spectrum Bridge on Wednesday.
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By using a spectrum license as part of the contribution, applicants can reduce the amount on-hand cash necessary to begin a project, as well as lower deployment costs for wireless broadband, said Bazelon. Companies that can provide more than 20 percent of capital expenditures will be looked upon even more favorably, he said. While NTIA and RUS would prefer to give out the federal money to smaller start-up companies, the agencies also hope to distribute the money in “bigger chunks” to expedite the process and avoid having to return the money left over by the Sept. 30, 2010, deadline, he said.
Applications that can demonstrate very specific details of how a plan can impact connectivity rates, speed, and availability will be the most likely to be selected by the NTIA and RUS for federal funding, said Bazelon.
Investing in a spectrum license and “demonstrating an ability to manage” it will also be a plus when applying to the agencies, said Peter Stanforth, chief technology officer of Spectrum Bridge, an online marketplace for spectrum.