BTOP Grantees Tackle Sustainability as Program Ends

The ability to interconnect is key to sustainability for BTOP infrastructure projects like NebraskaLink, a partnership among seven local providers working to deploy a middle-mile fiber network across the state, CEO Paul Ludwick said. In order to do that, it’s important to simplify interconnection policy and focus on long-term relationship with the interconnection partner, he said. The project management team already signed on over 20 ISPs, local exchange carriers, and non-profits to interconnect with its network, he said. The project has also seen interest in interconnecting from incumbent carriers, some of which didn’t participate in the BTOP program. The project has had talks with AT&T and is discussing with another national operator, he said. When completed, the network will include 450 miles of newly constructed fiber in western Nebraska, Ludwick noted. Additionally, fiber technology allows the project to reach unserved areas in a cost-efficient way, he said. The only major cost for interconnection partners is connecting fiber to their networks, he said. There’s no need to put in extra equipment, he said. Ludwick expects the network to be completed during the second half of 2013.

For infrastructure grantees, it’s important to evaluate the overall business plan going forward and likely customers and revenue assumptions post-BTOP, Strickling said, noting open access has been integral from the start of the program. Infrastructure recipients in other states are also focused on negotiating with potential third-party providers. Competitive carrier Delta Communications, which operates under the name Clearwave, is in talks with six service providers, according to its progress report submitted in February. The company got a $31.5 million grant to build a 740-mile fiber network in rural Illinois. Com Net, which got about $30 million to build a fiber network in western Ohio, said it has signed 11 agreements that it classifies as an interconnection, peering and/or transit arrangement. The company is negotiating more than 20 additional agreements, it said.

Meanwhile, for non-profits like California’s Stride Center, which trains underserved adults in digital literacy and job skills that lead to IT job placements, a big challenge this year is to survive after BTOP, said CEO Barrie Hathaway. The stimulus funding allows the center, once struggling financially, to strengthen its infrastructure, he said. As a result, private funders have stepped up and contributed during the BTOP process, he said. The stimulus money also allows the center to hire consultants working to make the center self-sufficient, Hathaway said, noting one of the business plans is to create a call center.

When BTOP goes away, grantees need to target resources effectively and partner with public and private providers, said Lilian Coral, a project manager at California’s United Way’s 211 statewide information and referral network assisting broadband education and adoption. The group is focused on bringing broadband services that don’t require security checks and installation fees to low-income communities, she said. It has identified providers that can offer low-cost broadband and computers on a large scale, she said, noting many non-profits are broadband resellers. The need for resources in every community is different, she said. In many communities, low-cost broadband and computer providers don’t exist, she said. “We need partners that can serve the entire state,” she said. The broadband adoption projects are more challenging because they don’t have a direct revenue stream, NTIA said. “They must be more creative,” the agency said.