According to the NTIA (National Telecommunications and Information Administration), the U.S. Congress has appropriated $4.7 billion to establish a Broadband Technology Opportunities Program for awards to eligible entities to develop and expand broadband services to unserved and underserved areas and improve access to broadband by public safety agencies.
Of these funds, $250 million will be available for innovative programs that encourage sustainable adoption of broadband services; at least $200 million will be available to upgrade technology and capacity at public computing centers, including community colleges and public libraries; $10 million will be a transfer to the Office of Inspector General for the purposes of BTOP audits and oversight. Up to $350 million of the BTOP funding is designated for the development and maintenance of statewide broadband inventory maps.
On April 2, 2009 Mark G. Seifert, the Senior Advisor to the Assistant Secretary of the NTIA testified before the Subcommittee on Communications, Technology, and the Internet of the U.S. House of Representatives concerning BTOP progress.
According to Mr. Seifert, the BTOP is "the first step in realizing President Obama's vision of bringing the benefits of broadband technology to all Americans. At its core, the broadband initiatives in the Recovery Act offer a tremendous opportunity to stimulate job creation and economic growth in both the near-term and for the future.
"President Obama believes in the transformative power of broadband. Broadband serves as an engine of economic development, enabling communities and regions to develop and expand job-creating businesses and institutions. Communications networks help improve the efficiency of virtually every sector of the economy. The Obama Administration is committed to harnessing the power of broadband technology to stimulate economic growth, create jobs, and help lay the foundation for long-term prosperity for all Americans. Through the BTOP grant program - and in coordination with the Department of Agriculture's Rural Utilities Service (RUS) grants and loans program - we are taking a critical first step in that direction.
He went on to report that, "the Organization for Economic Cooperation and Development (OECD) recently ranked the United States 15th among the 30 market economies of the OECD in terms of broadband subscribership per capita. President Obama believes that this must change. With access to broadband and the skills to use it effectively, Americans will be better able to compete, succeed, and lead in the 21st century's knowledge-based economy. Our scientists, universities, and researchers will need better broadband connections to continue our great tradition of innovation.
"The broadband initiatives within the Recovery Act mark the beginning of the process that we hope will result in the United States taking its rightful place as the world's leader in broadband deployment, availability, and adoption. To meet this challenge and to fulfill the statutory mandates of the Recovery Act, the Administration has set five goals for the broadband Recovery Act funding.
"Greater broadband availability and use will make a difference in the daily lives of our citizens. With access to broadband, students are able to learn and access resources far beyond their own classrooms or local libraries. Using telemedicine applications over broadband connections, doctors and other medical professionals can bring the latest medical advancements to patients in remote areas, resulting in immediate, efficient, and cost-effective treatment. Over broadband connections, small business owners are able to buy and sell their goods and services in both near and distant markets. Researchers and scientists require high-speed connections to collaboratively develop the new ideas that will keep our country in the lead. And all Americans have the potential to find new ways of making a living, developing and accessing information, and using other applications that enrich their lives using high-speed broadband. Broadband provides communities a canvas for innovation and economic development, that, by reason of either location or economic status, they have previously been unable to utilize."
BTOP Goals
Among the goals for BTOP, Mr. Seifert enumerated the following: "The program is intended to accelerate broadband deployment in unserved and underserved areas and improve access to broadband by public safety agencies. Significantly, however, while the Act focuses on supply stimulus, demand side stimulus is a critical goal. The Act specifies that the program be designed to stimulate job creation, economic growth, and the demand for broadband.
"Other purposes of BTOP include providing funds for broadband education, awareness, training, access, and support to a number of institutions including schools, libraries, educational and job-creating strategic facilities, as well as organizations that provide outreach and other broadband assistance to vulnerable populations.
"In accomplishing the purposes of BTOP, the Act contemplates that NTIA will consult with the states and with the FCC. We are also coordinating our activities with the RUS (Rural Utilities Service), which was allocated $2.5 billion in broadband Recovery Act funding for loans and grants.
"We have been meeting regularly with various state entities as well as with our colleagues at the FCC and RUS and have met with various state entities as well. For example, we are currently talking to RUS about creating a common application form to make it easier for entities to file grant applications with both agencies. We welcome - and indeed are actively seeking - the input of our state colleagues as well as our colleagues at the FCC and RUS as we implement this important program.
"The Act also provides $10 million for our Inspector General (IG) to ensure vigorous oversight of these grant funds. One of the very first actions we accomplished was the transfer of that money to the IG. We have been meeting with the IG and his staff to ensure that the program design incorporates appropriate safeguards from the outset to protect the taxpayers' investment.
BTOP Implementation Activities
Mr. Seifert further reports that, "Since the passage of the Recovery Act on February 17, 2009, NTIA has taken decisive action to jumpstart the Broadband Technology Opportunities Program. The Agency is staffing up to administer the $4.7 billion program. Although NTIA has many talented people already in place with significant grant-making experience, we are in the process of greatly supplementing this core team to handle the high levels of interest. We are also in the process of creating the technical systems that need to be in place to handle the tremendous volume of applications that we anticipate.
"We are coordinating closely with other agencies responsible for implementing related Recovery Act initiatives, such as the Department of Housing and Urban Development, the Department of Health and Human Services, and the Department of Energy. Through constructive coordination, funds and expertise can be leveraged where appropriate--and duplication and redundancy will be avoided to maximize the utility of taxpayer dollars.
"NTIA has launched its BTOP website to provide the public a window into how the Government intends to invest its money - http://www.ntia.doc.gov/broadbandgrants.
Challenges
As to challenges, Mr. Seifert informed the committed that, "We face many challenges in the upcoming months. Some of our challenges are substantive policy issues. For example, there are a host of statutory terms like "broadband," "unserved," and "underserved" that we must define in order to give guidance to potential applicants. We must also decide the scope of the consultative role the states will play as we review grant applications. During our public meetings, various stakeholders gave us very valuable but divergent views about how we should deal with these issues and we are confident that the comments filed by April 13, 2009, in response to the RFI, will contribute greatly to our decision-making on these important threshold issues. We are very focused on creating metrics and requiring reporting that will allow us to understand whether the grants we make are effective in moving the country closer to the Administration's broadband goals.
"While these challenges will be significant, by far our greatest challenge will be determining a fair, equitable, and appropriate manner for selecting grant recipients. We fully expect a pool of strong and innovative applications that reflect the genius of the American people and together address all of the purposes set out in the Act. Our most daunting task will be to select from among these many deserving applications those that most wisely invest the people's money to create jobs and offer credible, functioning, and scalable models for accelerating the deployment of broadband."
For a full copy of Mr. Seifert's briefing, please go here.