American Recovery and Reinvestment Act (ARRA) - The Stimulus Plan

The Stimulus Plan contains $7.2 billion for telecommunications projects in the form of grants, loans and loan guarantees. The money will be distributed by two existing agencies:

• NTIA - National Telecommunication and Information Administration of the Department of Commerce
• RD - Rural Development Telecommunications Program of the Department of Agriculture

The rules for disbursement of funds have been issued (PDF 324k). The Notice of Funds Available (NOFA) reflect extensive public comment and input from the White House and Office of Management and Budget (PDF 1MB). The NOFA covers both RD and NTIA programs; however, there will be two separate programs:

• Broadband Initiatives Program (BIP) administered by RD with $2.7 billion to distribute
• Broadband Technology Opportunities Program (BTOP) administered by NTIA with $4.5 billion to distribute.

Key criteria for obtaining Stimulus funds from either program include:

• Merit-Based Projects - applications must commit:
  • measurable results
  • optimize economic activity and create and/or save jobs
  • achieve long-term public benefit
• Subject to Review - by Congress and agencies
• Focus on Broadband, defined as "at least 768 kbps downstream and at least 200 kbps upstream"

Each program has separate criteria with BIP focused on rural markets and BTOP having instead a focus on un- and underserved markets. Prior funding from RD scores preference points for a project and RD funding favors vendors on the Material List. "Buy American" provisions of the ARRA have been waived for BIP and BTOP programs.

CALIENT products quantitatively improve network operation, deliver long-term public benefits, and are on the RD Materials List. All of which increase the priority for funding of projects deploying CALIENT equipment.

Next steps by NTIA and RD:

• Applications are being accepted from July 14 to August 21, 2009 for phase I distribution. Phase one is expected to distribute $4.0 billion of the $7.2 billion.
  • Electronic applications are available at www.broadbandusa.gov; applications over $1 million are required to be filed electronically.
• First awards are expected in September '09 with funds disbursed by December '09
• Additional application phases are expected in Dec '09 and June '10
• All stimulus money must be awarded by September 30, 2010 and projects fully complete in three years

Check frequently for current information on Federal Government Stimulus and with us at CALIENT for updates on telecom information and the latest on Intelligent Fiber Management solutions.