US agencies announce new broadband funding round

15.01.2010
Two U.S. agencies tasked with distributing US$7.2 billion in grants and loans for broadband projects have announced the availability of a second round of funding, with each agency focusing on different areas.

The first funding round for the broadband money included in a huge economic stimulus package passed in early 2009 is ongoing, with $2 billion to be released by the end of February. On Friday, the U.S. National Telecommunications and Information Administration (NTIA) and the U.S. Rural Utilities Service (RUS) announced a second round, for $4.8 billion, with applications accepted between Feb. 16 and March 15.

The two agencies expect to announce all the second-round awards by the end of September, they said.

Fund applications in the new round will be streamlined and more "user-friendly," NTIA and RUS officials said. Some applicants had complained that the first round required large amounts of information and paperwork in a brief time frame.

The NTIA, distributing $2.6 billion in grants in the second round, will give top priority to middle-mile broadband projects that connect key community institutions, such as libraries, hospitals, colleges and public safety organizations, the agency said. Local communities can then piggyback on the middle-mile networks to bring broadband to consumers.

NTIA also plans to award $150 million to public computer center projects, and $100 million to projects that increase broadband demand through training and education, the NTIA said.