Commerce Department Recovery Act
High Level Read by Declan Byrne (Airspan):
1. Applications will be accepted for FIRST ROUND between July 14th and August 14th.
2. RUS calls their Program the Broadband Initiatives Program (BIP) – NTIA calls their Program the Broadband Technology Opportunities Program (BTOP)
3. BIP is allocating $2.4B to this NOFA; BTOP is allocating $1.6B to this NOFA
4. Applications for projects in areas which are at least 75% Rural MUST be submitted to RUS BIP program.
5. Key Definitions
a. BROADBAND means 768kbps down/200kbps up
b. UNSERVED means at least 90% of persons in area lack access to BB
c. UNDERSERVED means either no more than 50% of persons in area have access to BB and/or no service provider in area advertises BB speeds of at least 3MBs down, and/or less than 40% of persons in area subscribe to BB
d. RURAL is any area NOT within a town of 20,000 persons – a RURAL Service Area means at least 75% of persons are RURAL
e. REMOTE is an UNSERVED RURAL area 50 miles from a non-RURAL area
6. BIP will GRANT for REMOTE and LOAN/GRANT for other builds. BTOP will GRANT for everything.
7. APPLICANTS request the Grant, Loan/Grant mix. BIP will favor applications that propose a higher level of loan funds.
8. Two Stage Application Process – Short-List and then Final Awards.
9. State Governors will be asked to comment on short-listed BTOP Applications only.
10. Projects only considered if they can be “substantially completed” (67% of funds disbursed) within two years of funding and totally completed within 3 years.
11. BIP will NOT fund overlapping service area projects
12. BIP will NOT require equity match; BTOP does require 20% equity match. In-Kind 3rd party contributions CAN contribute to equity match.
13. Eligible Expenses:
a. To fund the cost of leasing equipment so long as GAAP capital lease for not more than 5 years.
b. Pre-Application expenses not to exceed 5% of the award.
14. Ineligible Expenses:
a. No OPEX
b. No Acquisitions
c. No Vehicles
d. No facilities leased under the terms of an Operating Lease
e. No Mergers
f. No Spectrum purchases
15. Application Contents:
a. Application Format
i. Description of the project and Exec Summary
ii. Mapping and Data describing Geography and Demographics
iii. Description of Service Offering and Pricing Plans, competitive offerings in area, affordability of offerings
iv. Technology Type
v. Key Milestones for project as certified by an Engineer
vi. Resumes of key management personnel
vii. Pro-Forma financial analysis
viii. Legal Review
b. Congressional Districts covered
c. Estimated $$ needed
d. Public-Private Partnerships established
e. Itemized Budget
f. Historical Financial Statements (two years)
16. Short-Listed Applicants will be invited to submit additional information no later than 30 days after notification of Short-List and no later than October 15th
a. Awards will be GRANTED on or about November 7, 2009.
17. Scoring Criterion:
a. Up to 5 Points for “rurality” – 1 point for every 10,000 unserved households
b. Up to 5 points extra for really rural – 1 point for every 5% above the 75% threshold in Rural Service Area definition
c. Up to 5 points for really really rural – 1 point for every 50 miles from non-rural areas to be served
d. 5 points for Title II Applications (MBE, 8A, etc)
e. 5 points for collaboration on other ARRA activities – public safety, smart grids, health care, etc.
f. 10 points for wireless projects that deliver 2MBS up PLUS down
g. 5 points for affordability of service offering
h. 5 points for allowing other providers to use your build network (allowing choice to end-users)
i. 5 points for offering discounts to critical community facilities (Police, Libraries, Hospitals)
j. Up to 12 points for Applicants project management skills and organizational expertise
k. Up to 2 points for letters of support within the community
l. 10 points if able to commence project immediately
m. 1 point for Disadvantaged Small Business
n. 5 points for reasonable and good budget
o. Up to 10 points for leveraging matching capital
p. Up to 10 points for good mix of loan versus grant request
18. Reporting Requirements
a. Quarterly report on balance sheet, income statement, cash flows, rate package summaries, customer penetration.
b. Annual report on project success – # of households signed up, educational/other institutions benefiting