Cisco Expects Clarifications as It Helps Customers Tap Stimulus Funds
Tech giants like Cisco are waiting for clarity from the stimulus-grant rules as they help their customers and partners apply for money. The company, which isn’t a stimulus applicant, expects the agencies to start giving out the money this fall, Jeff Campbell, senior director of technology and trade policy, said in an interview.
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Cisco’s program, which helps prospective applicants navigate details of the stimulus bill, attracted mostly small and mid-sized companies and public bodies, Campbell said. A significant worry for the company’s service-provider customers is nondiscrimination rules in the NTIA program, he said. The application process and the 20 percent match provision are some common concerns from the clients, he said. But until the Notice of Funds Availability comes out this month, “we are all a little bit blind,” he said.
Definitions of terms like “underserved” and “unserved” and broadband speed requirements and non-discrimination rule descriptions will be the biggest issues, Campbell said. He said the grant agencies shouldn’t impose rules beyond what the FCC has. Some potential applicants might not participate in the stimulus program under unfavorable rules, Campbell warned.
An important part of the Cisco program is to help state and local governments understand what is possible through technology, a Cisco spokeswoman said. The company is focused on using technology to help transform public safety systems and enable new models of transportation services and health care delivery, she said. “We can’t underestimate wireless,” Campbell added. 4G mobile broadband technologies will play a big role, he forecast, saying he expects WiMAX deployment, which is a few years ahead of LTE, to expand. Companies should evaluate their existing infrastructure and then decide which network upgrade path they plan to adopt, he said.
Cisco has asked the stimulus fund distributors to be technology neutral, Campbell said, adding that the company wants “Buy American” provisions in the $7.2 billion stimulus program waived. The global nature of the electronic supply chain means a strict “Buy American” rule would inhibit the availability of a significant amount of equipment in the stimulus program, he said. But “we are optimistic” that the agencies will understand the complexities involved and the benefits of granting the waivers, he said. The fund administrators are expected to deal with the issue after the Notice of Funds Availability comes out, he said. Campbell pointed to opposition to the “Buy American” clause by the American Public Power Association and National Association of Telecommunications Officers and Advisors.
Other tech companies, like Microsoft and Oracle, have also recognized the potential to boost sales by offering advice that could help customers land stimulus grants. Microsoft has trained its education sales staff to help customers identify stimulus funds, apply for them and implement approved technologies.