[Edit: Was just notified by the inimitable Christopher Mitchell of Muninetworks.org that BroadbandUSA.gov has revised an error in their database that used to sort states based on where the applicants were located rather than the project service areas. There are some additional projects to be considered, which I will do over the weekend to supplement this post next week.]
Building upon my earlier explorations of the BTOP/BIP database of applications, I wanted to take on the challenge of an examining an entire state's worth of projects and determining which deserves funding the most.
As I'm a one-man review crew, I picked a state with a manageable number of applications, namely Vermont, which only has nine.
I don't have access to any more information than is available in the executive summaries, but that should presumably be enough to at least make some initial judgments about a project's significance and whether or not successful outcomes are plausible.
My unscientific approach to reviewing and ranking projects is to look at the short-term and long-term benefits of a project, both on the communities they serve and on informing future federal investment decisions, and also which projects look like they're going to maximize the impact of government dollars.
While I know only one project per state is guaranteed to get funded, I'm going to recommend one access and one adoption/use project as hopefully there'll be enough money and good projects to warrant doing at least this much for every state.
To start with Vermont has two sustainable adoption applications and two for public computing centers:
Adoption
Vermont Council on Rural Development, ~$2.5 million - They're going to create 24 eVermont communities focused on increasing broadband adoption, especially in communities where broadband has just been made available. On the surface this sounds like something all states should be doing, but at least in the executive summary there's no meat to this project, nothing to indicate how what they're doing is special. It all sounds a little generic. I also have to admit that part of me worries that this is a ploy to use public money to increase takerates and therefore profits for a private provider. I'm all for private providers making money, but unless there's a lot more detail about how what they're doing goes beyond just getting people online, then I'm not sure if this is the best use of government dollars.
Health Care & Rehabilitation Services of Southeastern VT, $743,822 - They're going to use this money to purchase and setup videoconferencing technology to connect rural mental health centers so that they can better share resources and save travel times for specialists. I'm 100% supportive of a project like this getting funded, one way or another. Yet I do wonder if it's the best use of BTOP money as it won't directly increase adoption and it doesn't necessarily create any jobs, which is the point of the overall stimulus. That said, if they could eventually extend the ability to communicate via video into homes and/or they're able to inspire other healthcare entities to start using two-way video technologies to improve efficiencies, then this could be an intriguing option.
Public Computing Centers
Vermont Department of Libraries, ~$600k - With this money they're going to enhance four existing computing centers, create four mobile computing labs, and facilitate some computer training. I like that they have a lot of local colleges engaged in this application, and they do have the training element which means this is about more than just buying computers. But if I'm being totally honest, this application's a little ho-hum for me. Not to say the money wouldn't be well spent or that it isn't needed, but instead that I'm wondering what larger benefits we're going to get from this. What lessons are we going to learn to establish best practices that can be used elsewhere. I also have some reservations about the effectiveness of mobile computing labs relative to fixed computing centers, especially since it seems likely that you could establish multiple computing centers for the cost of one mobile lab. This isn't a bad application; it just isn't one that gets me excited.
Southern Vermont Health & Recreation Center Foundation, Inc., ~$4 million - This one didn't have a link to a more extended executive summary so I have very little to go on. The gist is that they want to create a rural society of wellness that can serve as a national model. While I love the idea in theory, and it seems like it's something that should be done somewhere, I wonder if this is the best place to do it. The Recreation Center that is the named applicant looks like a nice facility, but I didn't see anything on their site that suggested they have any expertise in using broadband to encourage better health. The same challenge is true with Springfield Hospital, who they cite as a partner but when I looked at their website there was no mention of them having any special expertise. I do believe that we should be creating health centers that can serve as national models, but I'm not sure this is the one to do this, because based on the paragraph description in the database, I can't help but worry that this is nothing more than building new computing centers with links to health resources, in which case $4 million sounds like a lot of money.
Recommended Project
If I knew more about the eVermont initiative, I might lean towards that one, but as it currently stands I have to go with the one from Healthcare & Rehabilitation Services of Southeastern VT. They're not the strongest project for BTOP's adoption grants as they're not dealing directly with the issue of adoption, but what they are doing is using broadband to drive new efficiencies and doing so in such a way that could help further prove the model about the benefits of using two-way video to increase efficiencies. So if I could fund one adoption/computing center in Vermont, it would be this one.
Infrastructure
Vermont Telephone Company, $56 million grant for last-mile non-remote BIP/BTOP - The basics of this project are simple: VTel wants to overbuild its existing footprint with fiber and extend their reach to unserved surrounding areas with wireless. I do like this idea on one level since they're talking about building fiber, and VTel makes a compelling case that they can be trusted with government dollars and that they're fully capable of building quality networks. But I also have some reservations. For one, is wireless really the best solution for these unserved areas? I know that much of Vermont is hilly and heavily treed, two characteristics that make wireless signals more difficult to deliver. Also, I thought this money was intended to help connect the unserved, which the bulk of this grant won't go towards, as well as the underserved, which VTel's basically saying is what its customers are. Additionally, there is language in the stimulus that suggests these dollars are meant to spur the deployment of networks that wouldn't be deployed by other means, and yet VTel admits that they're likely to make these upgrades eventually and that stimulus funding would simply accelerate their timetable. Finally, I still have serious reservations about giving a grant to a private entity. I worry that doing this makes it hard to insure that these public dollars are used to further the public good rather than just to increase private profitability. I'm not saying this is a bad project, or that VTel was mistaken for applying, just that this doesn't seem like the ideal project to fund.
ECF, ~$69 million loan for last-mile non-remote BIP - I need to admit at the outset of this analysis that I know both Tim and Leslie Nulty personally and consider them both friends. They're also founding members of the Rural Fiber Alliance, which I'm spearheading. And I've been a fan of what they're attempting to do since before the stimulus. With those biases on the table, let me share my thoughts on their project. First off, compared to the VTel project, I'm immediately inclined to favor ECF's by the simple fact that they're a public project, which the original stimulus language suggested should get priority, and they're looking for a loan rather than a grant, and I think so long as a project will be self-sustaining, it's always better to loan money that you'll get back some day than to just give handouts of free money. I also prefer ECF's project because they're going to be bringing fiber to every home in their service area. They're not going to leave anyone behind, creating second-class digital citizens. Finally, I think that ECF's project has a greater chance of establishing a model that the rest of the country can learn from, proving both that fiber can be economical in rural areas and that open multi-service networks can be financially viable. The only things working against them are that fiber is more expensive per home to connect upfront than wireless, and that they don't have an established network deployment/operations infrastructure in place. But I strongly believe that while fiber may cost more upfront, that it's also by far the best long-term investment. Plus ECF's management team does have significant experience building viable networks.
Teljet Longhaul, ~$25 million middle mile grant BIP/BTOP - This is another project I know less about as they didn't include their executive summary, but I can say that on the surface I like the idea: to build new and interconnect existing fiber networks to create a regional network connecting educational, medical, and municipal facilities across VT, NH, NY, and ME. But again I have some reservations. For one, this is another private company that wants a grant, and if there's a public entity that's capable and is looking for a loan instead, I think you have to give them priority. Secondly, their site claims they have a FTTP network, yet they don't list any specifics and a quick Google search didn't turn anything up, which makes me a little suspicious. I'm also concerned about what safeguards would be put in place on a project like this to insure that this private company maintains a fair pricing structure on into the future. I'd hate to see us give out free money only to end up creating a private monopoly without any constraints on their ability to jack up prices. This is especially true with a fiber network, as if public money's paying for most of the deployment, then the cost of bandwidth should be really low, especially in-network as the incremental cost of delivering that is minuscule. So while I like this project's goals in theory, I have some concerns about the details of how it's going to be accomplished.
Northern Community Investment Corporation, two grants totaling ~$20 million across VT and NH for last-mile remote BIP - The gist of this project is that they want to build a big wireless network over the northern parts of VT and NH. NCIC is a non-profit entity, which is good, but they're also asking for a grant instead of a loan so we can't expect to get this money back to help fund other projects in the future elsewhere. I do like projects with a large scale so we can get a big impact from this money, but at the same time I'm still really wary of wireless projects, especially in troublesome terrain like you find in VT and NH. In fact, when I searched through their executive summary, they didn't use the word "fiber" once, which is very concerning as fiber should serve a key roll in any broadband deployment, even if it's not all the way to the home you at least need it running to wireless towers if you want robust wireless access. Also, they talk about serving community anchor institutions with wireless, but I'm always going to favor projects that connect these buildings with fiber as you need a lot of reliable capacity to support the usage of large numbers of simultaneous users like you'd find in a school or hospital. I know that wireless can do in a pinch, but we should prioritize fiber whenever possible. For these reasons I put this project in the good-but-not-great category.
Recommended Project
With all this thinking in mind, if I'm in the position of deciding which of these projects make the most sense to fund, I have to go with ECFiber. While I do have a bias there are a lot of logical, unbiased reasons for this recommendation:
1. They're the only ones asking for a loan instead of a grant, meaning they're the only project that will give money back that can be used to fund additional projects in the future.
2. They're the only ones bringing true broadband to the unserved, which means we won't have to worry about subsidizing these communities again in a few years.
3. They're the only ones that seem to have the potential to establish a model that, if successful, the rest of the country can learn from both for rural fiber and open networks.
None of the other applications feel as significant. That doesn't mean they don't deserve funding, just that I think ECF's will be the best use of taxpayer dollars, both in terms of helping rural Vermont and providing lessons that the rest of the country can learn from.
So there you have it. My thoughts on who should get broadband stimulus dollars in Vermont.
This was a really interesting exercise to embark on. It forced me to clarify my ideas about what types of projects should get funded, and Vermont provided a perfect microcosm of the kinds of projects that are seeking support across the country.
But even though Vermont didn't have that many projects and I didn't have that much information I needed to pour through, it still took quite a bit of time and critical thinking to come to these conclusions. As a result I have a greater appreciation for the challenge facing states, especially the bigger ones, when it comes to trying to whittle their lists down to just a handful of recommendations. Take California, they've got nearly 200 applications to sift through. Needless to say, I don't envy them.
But I do hope that the lines of thinking I introduced in this post will help guide states as well as the decisionmakers at NTIA and RUS as they go through their respective vetting processes and make their recommendations/decisions. Because as I've said before and will continue to say again and again: getting the broadband stimulus right is vitally important to America's broadband future. If we aren't good stewards of this round of funding, there likely won't ever be another.