PCCA Journal|1
st
Quarter 2013
25
A
griculture Under Secretary for Rural De-
velopment Dallas Tonsager in November
announced a plan to spur the development
of rural broadband networks. The plan
would allow USDA to give funding priority
to broadband projects in areas of greatest need. The changes
would apply to projects funded through the Community
Connect grant program, which is administered by the Rural
Utilities Service, part of the Rural Development mission area.
“Fast, reliable, affordable broadband is essential for rural
communities,” Tonsager said. “It helps businesses remain
competitive in the national and global marketplace, and it
helps residents have access to the same goods and services
as people in metropolitan areas.”
In addition to targeting resources to the most unserved
rural communities, the proposed changes would streamline
the grant application process. Applicants would be able to
use matching funds to cover operating costs of broadband
projects (they cannot do so now), and they would be able to
use grant funds for an entire geographic area instead of for
a single community. The changes also would allow applica-
tion scoring criteria to include factors such as the speed of
proposed broadband service and the level of service provided
to people with disabilities.
Telecom News
Rural Telecom Carriers Delaying
Projects Due to Regulatory Uncertainty
M
ore than 100 small,
independent
telecommunica-
tions carriers have
either postponed or
cancelled plans to upgrade their network
infrastructure as a result of regulatory
uncertainty, according to a survey con-
ducted by the National Telecommunica-
tions Cooperative Association (NTCA).
Results of the survey conducted in
January show that more than two-thirds
of participating rural telecommunica-
tions providers have either postponed or
cancelled plans to conduct network up-
grades because of uncertainty surround-
ing the FCC’s ongoing Universal Service
Fund and intercarrier compensation
reforms. NTCA members have expressed
repeated concerns in particular regard-
ing new caps that are based on volatile,
untested models and over the threat of
additional cuts, caps, and constraints on
cost recovery that are still being consid-
ered by the FCC.
One hundred eighty-five NTCA mem-
ber companies responded to the survey,
which asked participants if they have
postponed or cancelled network up-
grades and, if so, to apply a dollar value
to the investment subject to postpone-
ment or cancellation. Sixty-nine percent
of respondents (127) indicated they have
postponed or cancelled projects, and 101
respondents provided investment values
totaling more than $492 million.
“The results of this survey reaffirm
what we’ve known for quite some
time: that limiting rural carriers’ ability
to recover the cost of bringing high-
speed broadband to our country’s most
hard-to-serve areas is hindering efforts
to plan and execute necessary network
upgrades, resulting in millions of dollars
in lost or postponed investments,” said
NTCA Chief Executive Officer Shirley
Bloomfield. “Ultimately, this troubling
trend will mean fewer dollars flowing to
communities for economic development
and jobs, as projects continue to be put
on hold or are delayed indefinitely.
“This is precisely the wrong direction
that our country needs to be taking to
stimulate our economy, and it under-
mines the national objective of making
high-quality, affordable broadband avail-
able to every American through sustain-
able infrastructure investments.”
The results of NTCA’s survey mirror
those of similar surveys conducted by
two state telecommunications associa-
tions that showed a majority of their
members were cancelling or delaying
plans to deploy fiber in their service
areas as a result of the new rules and
those still being considered.
Rural Development Proposes Rule to Spur
Development of Broadband Networks
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