fyi marlon ----- Original Message ----- From: "Daniel Mullen" <[email protected]> To: <[email protected]> Sent: Saturday, February 28, 2009 11:58 AM Subject: Re: [WISPA] what to ask for at NTIA and RUS
Hey Marlon, You can forward this to the list as I am not logged in there right now. As below: At 17:20 28.02.2009, you wrote: >OK, I've been putting some thought into this bailout mess we find ourselves >in. > >The agencies have almost no time to design a program, take applications, >distribute money and audit the results. Audit? Spend with people you trust. The agencies will more than likely be influenced in great part by the friends who will speak for your project: local and state officials, because they are "close to the concept", on the ground, an eye for what works in that area, and so on. >I'll be surprised if they aren't forced to accept a basic outline of a plan >drawn on a Denny's napkin. > >What will the easiest and safest way to go as a government employee? Just >shoot most of the money out to the people that you already know. Even >though you've already sent 6 billion out the door to that same group (BTW, >we should use that number as a big reason why they should radically change >their models). No one will get in trouble for sticking with what's known, >and there's not nearly enough time to study the issue, accept public input >etc. etc. etc. Again, first come is first copied. If RUS lurches out with a plan then NTIA will likely integrate that into their model, and vice versa. >I don't know if we'll ever get the chance to give our input to the agencies >involved. (I know WISPA and many of us individually will sure be working >on >that though!!!) But if we do, what should we push for? The more of us >push >in the same direction the more we'll be able to move the agencies out of >their historic ruts. The agencies will likely tend towards public meetings or "open" proposal hearings where people from certain sectors will meet as a group. You cannot have one-on-ones because the interpretation of what will be done could vary wildly depending upon what people hear and how they hear it. My experience from Canada is that everyone is told the details openly, updates are given at the same time, and requests for comment are both open and public. Just becuase the open the door does not mean that they need to invite you in, so the onus will be on grantees to watch for the smoke signals. >Some of the things that I think would help a company like mine deal with >the >grants. Heck, even want the grants. (The last time I even considered one >was in 2001, too many strings.) > > No strings attached. Accept the plan laid out, look at the goals of > the >plan and approve or disapprove based on that. (We need more and better >broadband out here, but we do NOT need computer centers!) The borders are very rough right now. The concern is that someone starts tailoring restrictions to favour a patron of a member of congress, but things may move too fast for all involved. This could wind up being a bit like a "Buy It Now" offer on eBay - act fast. > Allow basic plans. There isn't time for us to figure this out down to >the last nut and bolt either. I have a plan to build new towers in many >locations. Some will be near existing buildings that are used for towers >now, others will have to be in totally new locations. It'll take time to >buy/lease ground. I might have to move my locations by great distances. Plans will be more along the lines of "bring 100 Mbps access to local district, 20 Mbps to all schools, 50 Mbps to hospital - imaging and diagnostics - plus 5 Mbps sync access to 300 homes" with capital budgets. No lease money here! > Allow labor to be paid. If I can grow/update my network I'll need to >hire some help. I won't be able to do enough new installs or upgrades to >get it all done quickly. You could train people with the new money, plus buy them tools, but payroll and operating costs are your nut. *** When you are smart and faster than they can think, you will contract out your projects to an outside firm, which will install for free. That firm - cough, cough, me please - can contract out installation work to local pairs of hands such as your own. > Fund small businesses at 100%. If I had the ability to get more money >(for matching funds) I'd have already used it to deploy more coverage to >more users. Woooo woooo! What a party. Every dipstick in hearing distance of Washington D.C. then would sign up for free money, buy stuff, wait, and finally sell out. Sell for 75% off and you still made 25% for NOTHING. We have been down that path before. I have seen projects be funded 120% or more; it does not make them successful in the long run. > Allow funding to purchase the tools needed to expand. If I get > another >installation crew running I'll need a rig for them. They'll need some >training etc. Tools qualify in some cases, but they need to meet the project. If items are determined to be long-lived then - that is IF the agencies realize this in time - my experience is that you are permitted to rent or lease for the term of the project. We used to supply projects with computer gear that was paid for in a few months and was rented for say a year to a project and then was still our property by the time the projects were completed. If the model that these agencies follow is the same, they will have an investment hurdle whereby cheaper items can simply be expensed but the others prorated or only rented. Then again, maybe they will not bother and everyone gets a 110' crane truck. > Allow the specifics of a deployment to change if need be. As long as >the original goal is still being met. Goals are the specifics. Name where you will do things, not how. Setting up a full duplex 200 Mbps backhaul from town A to town B will set timelines and service parameters. No one will have time to ask where the tower will be installed or who made the bolts.- > Money will need to be sent out in advance. Lets say that a company > gets >a $1m grant. They need $100k to $200k in the bank at all times. This will >allow is to get cash with order deals, adjust for changing opportunities >etc. We'll also be able to move MUCH more quickly than we otherwise would. Hahahahaha! Dear NTIA: Please send me $250,000 in small and unmarked bills and I promise I then will start to build the new data network - in my brand new home in Costa Rica. When you are approved for a grant you should already have set up a bridge facility at your local bank. As an alternative you can also try to lay the finance on your supplier, but honestly, unless your projects are in the tens of millions, it may not be worthwhile for them unless you give them security over every dollar and title to everything stay with them until paid. Now you have a Catch-22: until the title transfers you do not get paid, and you cannot pay until you have title. Again, the agencies may not realize that in time. Smaller vendors will likely be unable or unwilling to finance these deals: unless they are supplying everything to you, turn-key, then another lousy supplier who does not ship a required item will tie up the project - and their money. > Tie grant funds to the 477. If a company can prove that it's already >been in the broadband industry and has already been serving customers they >should be empowered to do more of what they already do. They'd have the >greatest chance of success over the long haul. No, various times you have heard "don't stifle innovation" and now is not the time to start. This money is open to your local Boy Scout Troop just as much as you. That being said, who is approved will reflect largely upon your narrative, supporting documentation, ability to complete on time, and recommendations. Chances then are good that you can leverage your experience in a given community towards an approval. > Do NOT fund startups. The Muni Wireless industry's pitiful results >should demonstrate that most of the "big thinkers" just don't get the >market. Let those that are already successful expand on what they are >already able to accomplish. In the BIG game everyone will be a start-up. Remember this though: ANYONE can apply, but SOMEONE will be approved. This means the money is not automatic just for the asking, and people do not realize that yet. The 20ยข dollars are misleading people into thinking this is all they need. The active players will also be allowing money for lawyers, project management firms, professional services and advisory firms on top of any direct project costs. > Make sure that most of the money goes to small business. The goal > here >is to create jobs. 90%+ of America's economy revolves around small >business. Many more jobs will be created and the money used more >efficiently (as seen in the historical record) by small businesses. They may have a limit on an existing telco with more than x% market share from getting money - IN ITS OWN MARKET AREA - so there are many mid-sized firms that will be able to expand, and I would expect they are all pulling overtime tonight looking at all those forgotten and "uneconomic" service areas. In order for the goal of the projects to be met - increase access to broadband - they may see mid-sized firms are more likely to have all the resources to act quickly, and therefore be more likely to succeed. Your success is not important to the agencies, the project goals are. > Fund operations for x (3 to 5?) years. We can build the networks > today, >but we can't create users today. It will take time to sign them up. It >will take time for them to maximize their new efficiencies with the new >technologies (or upgraded technologies) that we'll install. No - If you build, they will come. This automatically weeds out the weak projects. Who wants to supply a 1 Gbps link to a town with 20 people? >What does the borg think? How do we get in front of the agencies as they >create their programs? What do we ask for? How do we justify it? They will see tons of political pressure to act NOW, which means using what they have for rules, just in fast-forwarded form. The bigger problem is they do not have the processes in place today, nor the infrastructure in terms of people or resources, to handle any influx of requests. Again, I would expect them to farm out decision-making by seeking out state-level "advisory statement" letters to decide who gets what. >After talking to Steve Coran on Friday he thinks that we won't know >ANYTHING >about what we'll be able to do for a week or two yet. Then who knows how >long (or even if) we'll have to give our input and what input are they >going >to be willing to accept? > >Personally I am far more stressed out by sitting here doing nothing than I >am with the idea that I'll waste some time building a position that will >have to be modified or tossed completely out. I see more potential upside >to have many of our wants, needs, and desires fleshed out ahead of time >than >I do in potential downside. I don't have a lot of time available, but I do >have little snippets here and there. I don't have a problem doing some >foundation work while I wait for my family to wake up on a Sat. morn. Start now. Design your projects: create modules so as to either apply in blocks or create a "right-sized" project according to the feedback that should follow your application. As for me, I have already rounded up some $50K of gear that I will vend-in to a project, which means someone will then be able to do a $250K project for no money out of pocket provided they can make use of older but new gear and tolerate having me for a partner. Daniel >laters, >marlon > > > >-------------------------------------------------------------------------------- >WISPA Wants You! Join today! >http://signup.wispa.org/ >-------------------------------------------------------------------------------- > >WISPA Wireless List: [email protected] > >Subscribe/Unsubscribe: >http://lists.wispa.org/mailman/listinfo/wireless > >Archives: http://lists.wispa.org/pipermail/wireless/ -------------------------------------------------------------------------------- WISPA Wants You! Join today! http://signup.wispa.org/ -------------------------------------------------------------------------------- WISPA Wireless List: [email protected] Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
