TMCnews Featured Article


October 28, 2009

First Round of Broadband Stimulus Grants Delayed

By Kelly McGuire, TMCnet Editor


While SMBs, major corporations and various cities have been anxiously awaiting news on who will be receiving government funds for the broadband stimulus movement, the waiting has just been prolonged. 

Applications will have to wait an extra month, as the first broadband stimulus grants award release were recently pushed back until December, a month later than expected. 

Federal officials attributed the delay to the large amount of applicants – with 2,200 – and the complexity and time it takes to shift through and decipher recipient winnings. 

Larry Strickling, head of the Commerce Department's National Telecommunications and Information Administration, said that the few extra weeks will be used to really get into the logistics and get the situation in order in preparation for money delegations. 

“We absolutely understand the need to get the dollars out,” Strickling said. 

The delay comes at a time when companies are actively seeking ways to improve their business and operations. And, receiving part of the $7.2 billion in stimulus funding set aside for broadband Internet lines would be a nice gateway into a new industry hot spot. 

When Strickling announced the push back of fund releases, several lawmakers expressed frustration at how the program is being conducted and discussed concerns that the money won’t be spent in the appropriate rural areas without decent high-speed Internet service. 

Senator Jay Rockefeller stated that, as a way to be fair to applicants, a system needs to be implemented to simplify the process going forward. 

Additionally, Rockefeller questioned why applicants were asked for so much information and raised concerns that small companies serving rural areas in West Virginia and other states found the application process too daunting and costly to attempt.

Previously drawing criticism for the lack of larger national applications like Internet providers AT&T (News - Alert) Inc. and Comcast Corp., this news will only add to the controversial situation. 

According to reports, Comcast and other Internet providers are expected to file information with federal officials that identifies areas where they offer service. 

Federal officials are considering a number of changes to the program, including delaying the next application deadline so changes can be made that would allow more rural areas to become eligible for funding.

Kelly McGuire is a TMCnet Web editor, covering CRM and workforce technologies, and anchor of its daily TMC Newsroom video broadcast. Kelly also writes about eco-friendly �green� technologies and smart grids, compiling TMCnet�s weekly e-Newsletters on those topics, as well as the cable industry. To read more of Kelly�s articles, please visit her columnist page.

Edited by Kelly McGuire