Interesting People mailing list archives

Broadband Stymied


From: Dave Farber <dave () farber net>
Date: Mon, 15 Mar 2010 12:50:30 -0400





Begin forwarded message:

From: Brett Glass <brett () lariat net>
Date: March 15, 2010 11:37:23 AM EDT
To: dave () farber net, ip <ip () v2 listbox com>
Subject: Re: [IP] Broadband Stymied


All:

Agree that the stimulus effort has, so far, produced few useful results and perhaps has been counterproductive.

Ironically, my own ISP -- which is typical of many that bring service to unserved rural areas -- is not even eligible to receive funding. Why? Because it a sole proprietorship -- the most common form of small business in the US -- and not a corporation.

Yes, that's right. According to the NTIA and USDA rules, only corporations need apply for the money.

When I asked a high level administrator why, he replied, "We can't give grants to individual persons." I pointed out that corporations are nothing but fictitious persons, and asked, "Would you rather loan money to a fictitious person or a real one, which won't dissolve in the middle of the night and has real assets such as a home that he or she doesn't want to lose?"

He had no good answer.

As a result, all we can do is hope that a corporation applies for a grant for our area and that we can then leverage the "open access" rules (which discourage such applications) to get onto any infrastructure that is built.

The stimulus program has also allowed grant recipients to "cherry pick" areas that they want to serve, whilst ignoring others that are in greater need of service.

For example, it has been reported that Level3 -- the nationwide fiber company -- has received several grants to open up points of presence along its fiber routes in the Midwest.

My own city, however, has been asking Level3 to open up a POP for years. And it has one already built; the building is already equipped and ready, and requires only an investment of about $150K (in optronics and splicing) to open.

But will Level3 open up a POP here -- or anywhere in Wyoming? Nope. Our state has been "redlined" -- apparently due to low population density. And the NTIA and RUS grant program didn't require the company to serve markets that were actually in the most need.

Such dysfunctional behaviors are one reason why we should not expect too much of the stimulus.

--Brett Glass





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