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Rural Broadband Solutions Seen Critical to National Broadband Policy

A successful national broadband policy needs to address affordability, access, funding, demand and supply issues in rural areas, speakers said during a Pike & Fischer webinar Wednesday. They warned that definitions and application process issues in the broadband stimulus program and some Universal Service Fund rules could hurt the outcome of these programs.

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Critical issues for the broadband plan include definitions, scope, funding, metrics and vision, said Karen Perry, director of the Connected Communities Team with the Knight Center of Digital Excellence. To overcome the hurdles, motivation, access, enrichment and training are needed, she said. Successful adoptions are usually embedded in established community social and institutional networks, based on personal interactions and relationships, she said. Sustainable programs often offer continuing formal and peer support to the new adopter in several stages including engaging, training, equipping and supporting, she said. Support for affordable home computer and Internet access and integrating basic IT adoption with other motivating opportunities are also necessary, she said.

A single broadband solution often doesn’t cover all objectives, said Randy Sukow, a business analyst with the National Rural Telecom Cooperative (NRTC). A main rural broadband goal is to establish viable broadband businesses with adequate margins to maintain service and plan ahead for technology and service upgrades to meet changes in demand, he said. Sukow, a WiMAX backer, said WiMAX offers a economical path for broadband expansion. NRTC helped electric cooperatives and telcos applying for broadband stimulus money to launch WiMAX services, he said. There could be more applications in future funding rounds, he said, adding WiMAX has a potential application to other goals like smart grid. But technology alone isn’t the solution as economies of scale are the challenges in remote and tribal areas, said Eric Jensen, policy counsel of the National Tribal Telecom Association.

Adoption is vital beyond infrastructure deployment, Jensen said, saying tribal communities have been underserved for a long time. Sustainability of connectivity is crucial, but sustainability is rarely tenable in unserved areas, he said. Jensen proposed putting spectrum and regulatory licensing in the hands of providers that can best build out services. Government spectrum should only be allocated to the highest private bidder to generate revenue, he said. Exclusive licensing rights promote a more stable investment environment, he said. He also proposed high-cost subsidies to be directed toward smaller ILECs. A stable and exclusive Eligible Telecom Carrier (ETC) certification is needed to promote long-term investment, he said, saying ETCs can pass on line-extension charges while a spectrum license exacts a one-time value payment.

“Public dollars should never compete with private investments,” Jensen said. The Universal Service Fund is “finite,” resulting in rate-payer fatigue and potential payer rebellion, he said. Regulatory incentives and support are focused on the supply side, he said. Programs focusing on demand, including Lifeline, Link-up, E-rate, telemedicine and distance learning lack support, he said.

Speakers also urged rule changing in future rounds of the stimulus application programs. The application process should be streamlined with a better IT experience, Sukow said, calling the application process difficult and complex. During the first round, online tools were primitive and Web congestion slowed the application process, he said, but RUS and NTIA received a massive number of applications. The definitions of “underserved” and “unserved” are too narrow and the definition of broadband set the bar too low, Perry said. The stimulus program could potentially reward applicants that need no grants, Jensen said.

Speakers urged federal regulators and policy makers to look outside the box for solutions. The stimulus funding won’t result in universal availability though it will move the ball forward quite a bit, Sukow said. Federal funding for remote “unserved” areas, where investments are absent, should be a priority, Jensen said. He proposed funding middle-mile wholesale networks whenever possible to remove cost barriers and stimulate last-mile retail investment and competition, particularly in “unserved” areas.

Additionally, Perry proposed implementing Universal Design to ensure that content and tools are accessible to people with disabilities. Increasing the intensity of use in core verticals like health care, education, government and promoting cross-elastic application and investments are necessary, she said. Perry urged raising the bar on digital skills, especially information literacy and collaboration. The National Broadband Policy should be created reflecting these principles, she said.