Research and Markets: Middle-mile Muscles Out Last Mile Spending in US Broadband Stimulus

DUBLIN--(BUSINESS WIRE)-- Research and Markets (http://www.researchandmarkets.com/research/0f7a22/middlemile_muscle) has announced the addition of the "Middle-mile Muscles Out Last Mile Spending in US Broadband Stimulus " report to their offering.

As we wait for the unveiling of the National Broadband Plan on 17 March 2010, we have already begun to see the National Telecommunications and Information Administration (NTIA) shift its bias to middle-mile projects rather than last-mile (access) projects for awarding the $7.2 billion broadband stimulus funding made available through the American Recovery and Reinvestment Act of 2009. The Rural Utilities Service (RUS), however, continues to fund last-mile access projects albeit with a smaller pot. Ovum believes the National Broadband Plan will include an ambitious, long-term follow-on effort to upgrade last-mile access everywhere, but particularly in unserved and underserved areas that receive money from the Universal Service Fund. There is plenty more spending to come, especially on fiber rollouts, but optical transport vendors stand to gain a bigger piece of the pie than access vendors in the immediate future.

Key Topics Covered:

• Executive summary
• NTIA to prioritize middle-mile fiber rollouts in both rounds
• Initial RUS awards involving multiple rural FTTH rollouts should continue
• The multiplier effect
• Optical network vendors to benefit
• Ambitious National Broadband Plan to be unveiled in March
• Additional funding for fiber rollouts is good, but the devil is in the details
• First-round awards ongoing
• More wireline than wireless broadband
• Second-round window opens
• All funds still expected to be awarded by September 2010
• Changes for the second round of funding
• Simpler and more focused application process
• NTIA to focus on middle-mile broadband infrastructure
• Last-mile components within projects get lower priority than NTIA middle-mile components
• Why the focus on the middle mile and community anchor institutions?
• RUS funding to focus on last-mile builds
• RUS removes non-remote funding restrictions
• Other changes in the second round
• Separate and simpler application procedures; revision and clarification of eligibility criteria and waivers
• Removal of unserved and underserved area requirement by NTIA
• Factors in the application and selection process
• Open access and network neutrality issues will apply, but managed services will be allowed
• Transparency will be maintained through strict reporting requirements
• The Buy America constraint can be avoided with a waiver
• Creative matching tool should help applicants with limited resources
• Clarification of sale of broadband assets is likely to draw additional interest
• Summary

For more information visit http://www.researchandmarkets.com/research/0f7a22/middlemile_muscle

Source: Ovum

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Research and Markets
Laura Wood, Senior Manager,
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KEYWORDS:   United States  North America  New York

INDUSTRY KEYWORDS:   Technology  Telecommunications  Mobile/Wireless

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