Landline-based projects favored in stimulus awards, researchers contend

As applications for funding in Round 2 of the broadband stimulus program begin to hit government agencies tomorrow, only about 15% of the funds allotted for Round 1 have been awarded. The National Telecommunications and Information Agency and the Rural Utilities Service, already on a tight schedule, had hoped to complete that task by today but apparently were delayed by closures of government offices as a result of heavy snowfall last week.

Just four awards (all from the NTIA) were announced in the last two weeks, despite an assertion by RUS Administrator Jonathan Adelstein in late January that the agency was in “high gear” in making its award announcements.

Meanwhile, consulting firm CSMG and professional services firm TMNG shared summary data from the first funding round that reveals administrators’ preference for landline-based projects over wireless ones. That data, which reflects all but the four most recent awards (both for public computing centers) shows wireless used for just five projects, which together totaled about $37 million—about 6.5% of the $565 million awarded.

The low percentage of wireless projects awarded wasn’t the result of a lack of proposals, researchers told participants on a February 4 webcast organized by the Rural Cellular Association. Wireless providers applied for $5.7 billion in Round 1, representing about 20% of total stimulus requests, the researchers said.