The American Recovery and Reinvestment Act of 2009

Mary Ferguson LaFaveDirector Public Policy – Qwest

May 5, 2009

ARRA -- Broadband Provisions

• Two Agencies Will Disperse Federal Funds– Department of Agriculture – RUS – Department of Commerce – NTIA – The FCC will coordinate with these agencies and

provide guidance on definitions

• Timing – All funds must be dispersed by September 30, 2010– Funded projects must be completed within 2 years of

receipt of the award– NTIA – NOFA on 6/1/09 and first grants 9/09– RUS – No Announced Dates

RUS • $2.5B in Grants, Loans and Loan Guarantees

– At least 75% of area targeted by a project must be rural without sufficient access to high speed broadband service to facilitate economic development

– No area of a project funded by RUS may receive NTIA funds

• Identified Priorities– Broadband systems that will deliver end users a choice of more

than one service provider

– Projects that provide service to the highest proportion of unserved rural residents

– Borrowers or former borrowers under the Rural Electrification Act of 1936

– All project elements will be fully funded

– Projects that can be completed

– Projects that can begin promptly

NTIA

• $4.7B for Broadband Technology Opportunities Program – $350M for developing and maintaining a broadband inventory map

– $200M to expand public computer center capacity

– $250M for “innovative programs to encourage sustainable adoption of broadband service

• BTOP Goals– Provide broadband access in unserved areas

– Provide improved broadband access in “underserved” area

– Improve access to broadband by various segments of the community thereby stimulating job growth

• Funds – Competitive grants will be awarded

– Absent a waiver, an successful applicant must fund 20% of the project’s cost

NTIA• Selection Guidance:

– If practicable, at least one award in each State

– Grant should increase the affordability and subscribership to broadband to the greatest population of users in the area

– Technology Neutral

– Avoid unjust enrichment

– Projects that can be started and completed expeditiously

• Eligible Grant Applicants – States, political subdivisions, Indian Tribes and non-profit

organizations

– Any other entity, including a broadband service or infrastructure provider, that the Asst. Secretary finds to be in the public interest

Qwest’s Advocacy and Analytical Approach

• Advocacy – Focus on Unserved, Rural Areas

– Use existing rules

– Look to existing providers to deploy, maintain and sustain the broadband infrastructure

• Qwest Analysis – Where are unserved areas in our territory

• Of those, identify those that are rural • Of those, identify whether there is a fixed line, facilities based provider

– Result • If Qwest were to pursue grants, for approximately $500M, Qwest can

deploy broadband service to approximately 600,000 new living units

Open Issues

• Reporting and Accounting Requirements Imposed on Grant Recipients

• Cost of facilities relocation associated with massive transportation improvement projects

•Definitions•Broadband

•Unserved

•Underserved

•Non Discrimination

•Open Access

•Role of the States

•Mapping

Other Issues