Changes Coming to Stimulus Program

Going forward, “we are very open to more targeted directions” but would first look at some key information including what jobs would be created and how the funded projects would help increase adoption, Power said. Everybody would like to see more money, he said. The agency is studying proposals advocating connecting anchor institutions to drive adoption, he said. NTIA is also looking at a more comprehensive community approach, including public-private partnerships and commitments from communities, anchor institutions and last mile providers, he said. The second notice of funds availability is targeted for the end of the year and early 2010, he said. Meanwhile, there’s tension between “doing it fast and doing it right,” Power said, noting the one-month delay in granting awards. But “we have an aggressive schedule” and the goal is to get the grants out soon, he said.

There could be changes to the broadband speed definition too as Power acknowledged that one size doesn’t fit all. Policy makers should consider actual speeds consumers get, specific applications and technology differences rather than setting a predefined goal, said Lauren Van Wazer, chief policy and technology counsel at Cox Enterprises. But it would be helpful to set the goal high, said Jeff Campbell, Cisco senior policy director.

Additional clarity in rules and guidelines like open access and non-discrimination and more regulatory certainty are necessary for future rounds of stimulus application, said David Redl, director of regulatory affairs at CTIA. Additionally, clearer definition of “unserved” and “underserved” is definitely the key as definitions are still a little loose, said Jill Canfield, senior regulatory counsel at the National Telecommunications Cooperative Association, urging more efficiency. New guidelines should better reflect anchor institutions like hospitals and schools, said Microsoft Regulatory Counsel Paula Boyd.

Panelists also agreed that more regulatory certainty governing net neutrality is critical. The long-term impact of potential net neutrality rules on competition and investment are unclear, Verizon Senior Vice President of Regulatory Affairs Kathleen Grillo said. Overly restrictive net neutrality rules would hurt competition and innovation, Campbell warned. How net neutrality principles would be coded into law is key, said Benjamin Lennett, a policy analyst with New America Foundation.

Spectrum and the universal service fund (USF) would definitely be a key part of FCC’s National Broadband Plan, due to Congress in February, panelists said. In addition, Grillo said she hopes to see more focus on smart grid and health IT. Devices, applications and broadband content should also be part of the plan, said Cathy Messey, executive vice president at Clearwire. Government adoption of broadband technology and how to make government operation better was never a significant part of the broadband discussion, said Campbell, urging putting that into the plan. How to improve consumer transparency, leverage broadband for public transportation and connect communities and anchor institutions should be included, said New America’s Lennett.

The U.S. broadband adoption challenge is a demand-side problem, which is linked to areas like income, education levels and language barriers, said Larry Spiwak, president of the Phoenix Center for Advanced Legal and Economic Public Policy Studies, urging the FCC to reduce entry cost. When allocating USF, it’s important to separate operating expenditure from capital expenditure, Campbell said, noting capex is the main issue in rural buildouts. The FCC should prioritize investments, said Cox’s Van Wazer. The middle miles seem to be a major bottleneck in broadband deployment, she said. A main broadband challenge is to bring value to broadband, said Clyde Edwards, a community program officer at One Economy, urging broadband education efforts and literacy programs. That requires collaborations among different government entities, Verizon’s Grillo said.

Broadband data collection hasn’t addressed price issues, said Scott Wallsten, economics director of the FCC’s Broadband Task Force. Without price data, demand can’t be tracked, he said. Confidentiality matters in data gathering, said Jonathan Banks, a senior vice president at USTelecom.