RUS Definitions May Cause Many Applicants to Delay

Despite hundreds of hours of testimony and what must have been very hard thinking about how to craft reasonable and fair rules for awarding broadband stimulus funds, especially those to be granted under the Rural Utilities Service program, the effort appears to have resulted in snags.


Adtran, for example, has been lobbying Washington officials to change the rules. In the meantime, it appears some, perhaps many or even most rural telecom providers might delay submitting proposals in the first of three rounds because they simply cannot meet the criteria for “rural” areas.

The way the rules currently are written, “remote” areas are defined as being at least 250 miles away from a large population center.

That is “nearly impossible” for many rural providers to demonstrate, service providers say. RUS has acknowledged the difficulty and is considering changing the rules.

But any such changes will not occur in time to affect the first round of applications.

Adtran also has been encouraging the National Telecommunications and Information Administration and RUS to ensure that priority is given to grant applicants experienced with broadband and other communication services. That, of course, will be opposed by applicants who do not have such track records.

Expect more squawking once the first round of grants are made.