Sunday, March 29, 2009

Addressing "Sustainability" of NTIA Broadband Stimulus Projects

The problem many applicants must face in crafting projects under the National Telecommunications & Information Administration portion of the American Recovery & Reinvestment Act ("stimulus bill") are the conflicting objectives.

The "broadband stimulus" portion of the ARRA is supposed to create jobs. Broadband is almost a secondary objective. The projects are supposed to have "measurable" goals. But economists aren't sure whether new broadband facilities actually create--or destroy--jobs.

All funds awarded under the NTIA program must be spent in two years, so are temporary, but the ARRA ideally expects "sustainability" of the projects once federal funding ends.

Nobody yet knows what "under-served" means, so many projects might actually be proposed in areas where there are two wired services providers as well as two satellite providers, plus three mobile broadband providers. Lots of people are "under-served" not because of lack of access to facilities but for some other reason: lack of interest, lack of knowledge, equipment or money.

Most people think the Rural Utilities Service portion of the program will address rural areas. But an argument can be made for rural programs under the NTIA rules that actually have a route to "sustainability" and "job creation" on a permanent basis.

That route is funding rural call center operations. NTIA funds can be used to create facilities, either "at home" or perhaps at new call center facilities, with monies used to train rural residents.

The sustainability of the jobs and connectivity once the NTIA funding runs out are provided by the call center operations. Since NTIA projects have a stated preference for education and job creation, proposals should be submitted by community colleges and state job training agencies, in conjunction with service providers that can provide the connectivity and equipment.

The objective would be to deliver a turnkey "call center" capability ready to be used by any firm requiring such capabilities.  It's a thought.

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