Reader Forum: The broadband stimulus application and beyond

Editor’s Note: Welcome to our weekly Reader Forum section. In an attempt to broaden our interaction with our readers we have created this forum for those with something meaningful to say to the wireless industry. We want to keep this as open as possible, but maintain some editorial control so as to keep it free of commercials or attacks. Please send along submissions for this section to our editors at: [email protected] or [email protected].
More than a third of United States residents do not subscribe to broadband service and in many communities, particularly in rural areas, broadband access does not exist, limiting the flow of information and restricting commerce. Just as universal mail delivery and a nationwide interstate highway system were once priorities of the federal government, universal broadband coverage has become one of the primary national goals today. Last year, as part of the American Recovery and Reinvestment Act of 2009, Congress allotted $7.2 billion dollars to support the deployment of broadband coverage to un-served and underserved communities, with the goal of spurring job creation and economic growth.
The communications industry has applauded the investment and providers have been scrambling to get their share of the federal grants being allocated to make it a reality. But as round one of the stimulus process has shown, competition for funds is intense and the application requirements rigorous.
The government agencies responsible for distributing funds require applicants to provide sophisticated, detailed geo-based data and maps along with their grant requests. The 39-page application requests very specific information about the markets providers plan to serve, including maps of areas to be served, data on numbers of households, population, population density and average income – all at the census block level. The data must illustrate both market need and market type, and, for certain grants, companies must demonstrate that 75% or more of the funds they receive will be used in rural areas.
In the first round of the application process, completed last August, it quickly became apparent that few providers had at their disposal the required data to complete the application process or the location intelligence that would be needed to deploy the stimulus funds in the most effective manner.
In response to the application requirements, new data, mapping and analytic sources and solutions have been developed to address these needs and ease the process for providers. These tools offer “Demographic Data Bundles” specifically designed to compile and present the required maps and census block level data and go beyond simple mapping solutions, bringing in data and analytic support. Some of the guesswork can be taken out of the application by using new solutions such as micro-level analysis that organizes data geographically for each of the 8.2 million census blocks as well as solutions designed specifically for the terms laid out in the application. For example, terms such as “un-served,” “underserved,” “rural” and “non-rural” can be incorporated into the tool by the exact parameters laid out by governmental agencies.
Providers deploying these solutions are likely to find that these next-generation location intelligent technologies provide even greater value after grants are secured. With the ability to identify potential new broadband customers and build out networks in the most cost-effective manner, providers are investing in their businesses beyond the funding process.
Companies who have been involved in the application and broadband expansion process have identified key data elements that are the most helpful to network designers, business analysts and strategic planners and impactful to success. These elements include:
–Household and population data: Rather than relying on dated census information alone, additional mapping and analytic data sources on the market now make more current and accurate information at the household level available (including occupied households, household population and seasonal household information).
–Population density: Providers applying for stimulus funds may be wise to propose projects for which the cost to build out broadband infrastructure would not be viable without government grants. This can be determined more easily with mapping and analytic solutions that calculate the specific number of households and people per square mile to identify the optimal areas to build out broadband infrastructure.
–Population-weighted block areas:M A census block may contain hundreds of households, but the distribution may not be even within a geographical space. Tools that can identify the precise latitude and longitude of the greatest concentration in a block are helpful particularly in rural areas where a small pocket of opportunity may exist in one corner of a geographical expanse.
–Rural and urban classifications: A provider’s ability to classify census blocks using additional location intelligence and data as “urban” or “rural” by the precise definitions established in the application process is key to meeting the necessary requirements.
–Broadband in-use indicators: No database exists at this time to account for every broadband-service home, but some databases may include up to 20 million confirmed records of households who have self-reported access to at least one form of broadband service. This tool allows providers to make informed assumptions about which areas can be considered un-served or underserved more easily when planning network expansion.
Universal broadband access is on the horizon and wireless companies are eager to play a role and stay ahead in the market. The first round of stimulus funding demonstrated that competition is fierce, with applications exceeding available funds by a significant margin. With more time to prepare for subsequent rounds, competition will only become more intense. A key differentiating success factor will be the ability to adhere to the emerging standard – having data at the individual census block level rather than data at the block group level only. More sophisticated data solutions not only arm providers with a significant edge in the rigid, exact application process for government funds, but are an investment in their own right for better decisions beyond allocation of stimulus grants, helping providers acquire, serve and grow business.
Christopher Cherry is the Director of Communications Vertical Strategy at Pitney Bowes Business Insight, a leading provider of location-based solutions, intelligence and expertise to businesses and governments worldwide. Christopher has been analyzing and advising in the communications sector for more than 15 years, and has worked to develop strategies for many of the largest providers.