Sunday, February 15, 2009

Grants

February 15, 2009

I think this industry is now on a roll. In 'geek world' there are reports of Wimax access in Seattle, Portland, Northern California, Phily, Boston, and of course, Baltimore. It seams like Clearwire is moving in 'stealth mode'; leaving the industry guessing about their deployment plans.

What is 'clear' is that this new stimulus bill will be instrumental in the promulgation of wireless infrastructure extension:


"The stimulus package sets aside $7.2 billion to fund broadband grants that target under served and un-served areas, primarily residents in rural and remote areas that large broadband providers have been slow to connect because of deployment costs.

The National Telecommunications and Information Administration will hand out $4.7 billion, while the Department of Agriculture's Rural Utilities Service will administer $2.5 billion in grants.

"Most people are begging for this," said Andrew Cardin, vice president of DigitalPath, a small wireless Internet service provider in Chico. "There are some people who don't see the relevance because they haven't had the experience of what broadband can provide them. But once they have it, they won't give it up."

Small and medium service providers like DigitalPath that work outside metro areas will be among the beneficiaries of the broadband grants. DigitalPath provides wireless Internet service to mostly rural counties from Sacramento to Shasta County. DigitalPath uses large antennas to relay data, an approach well-suited to the task of connecting rural communities, which otherwise would require huge outlays of cash for traditional wiring, said Craig Settles, an Oakland wireless strategy consultant.

But the benefits of the deal extend beyond underserved Internet users. The grant money also will provide a boost to a range of technology companies, from networking equipment providers such as Cisco Systems, who will sell more electronics for expanded networks, to computer hardware manufacturers like Hewlett-Packard, which might provide some of the computers that connect underserved residents to the Internet. Internet companies such as Google, Amazon and eBay also stand to benefit from an expanded base of users.

"There will be a direct and indirect multiplier effect from the investment," said Dean Garfield, president and CEO of the Information Technology Industry Council, an advocacy group for the IT industry. "My sense is there will be winners from a broad cross section of Silicon Valley."

Jeff Campbell, senior director of technology and trade policy for Cisco, said legislators apparently decided that expanding availability was more important than pushing speed. He said that makes sense if the emphasis is bringing broadband to underserved communities. And it won't preclude companies from still offering higher speeds as a way to better compete for grant money."

I think it's time for the small WISPs and entreprenuers to get going!