The American Recovery and Revinvestment Act of 2009

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					The American Recovery and
 Reinvestment Act of 2009

        Mary Ferguson LaFave
     Director 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
• $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
• $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
• 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
   – 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
     •Non Discrimination
     •Open Access
 •Role of the States
 Other Issues
  • Reporting and Accounting Requirements Imposed on Grant
  • Cost of facilities relocation associated with massive
    transportation improvement projects

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