TMCnews Featured Article


November 23, 2009

Local Utility, Wireless Broadband Stimulus Hopefuls Go Head-to-Head in Pennsylvania

By Paula Bernier, Executive Editor, IP Communications Magazines


The FCC (News - Alert) earlier this fall invited incumbent service providers to comment on broadband stimulus applications in their areas of service. As expected, these companies are weighing in; and, not surprisingly, their comments are often raising the ire of the applicants. Pennsylvania is just one of the latest areas in which we’re seeing debates on this front.
 
Specifically, Armstrong Utilities Inc. in Butler, Pa., reportedly filed an objection to a broadband stimulus application by DigitalBridge Communications (News - Alert) and Schurz Communications (the parent company of local newspaper the Daily American), arguing that more than 50 percent of the area in the application is already served by broadband Internet and that more than 40 percent of people in that area already subscribe to the broadband Internet. DigitalBridge and Schurz are seeking millions of dollars in federal monies to provide wireless Internet service in Somerset County.

According to a story on the matter, the objection comment on the Broadband USA Applications Database says: “Given the presence of other broadband service providers in neighboring towns, it is reasonable to conclude that the applicant has failed to meet the required showings for its entire PFSA (proposed funded service area), and its application should be denied.”

For that reason, the statement reportedly indicates, the application should be rejected or amended because it doesn’t address unserved or underserved areas, per the broadband stimulus language in the FCC’s Notice of Funds Available (NOFA) document.
 
DigitalBridge, Schurz, local officials and many others quickly responded that while there may be some overlap, the need for broadband in the area is clearly present and desirable. In fact, there were reportedly 400 letters of support for the application from county residents over two weeks.

“This is the best opportunity for the county to immediately expand broadband services to the majority of our residents whose needs are not currently being met by available providers,” Somerset County Commissioner Pamela Tokar-Ickes reportedly said in an e-mail. “The outpouring of public support for the Daily American’s application has firmly established the unserved and underserved market does exist. With the competitive funds now available, and the Daily American’s project through some of the preliminary hurdles, it is unfortunate this objection has now surfaced.”

The NTIA and RUS, the federal agencies working with the FCC on the broadband stimulus effort, are expected to announce first round fund winners next month.



Edited by Michael Dinan