Travis, You bring up an entirely different topic... "Whether its worth it to a small WISP or for any company to accept the money".
But the comment I was originally responding to was related to "big companies will win the grants". The big companies that win grants will have all the same limitations that a WISP would if they won a grant. Its not any more advantageous for a big company to have government employees telling them what to do. Regarding BIP loan, I would have to agree, not worth it unless doing a large loan much larger than one's own personal prior investment. I suggest all reading the "colladeral" section of the RUS loans and securities agreement posted to the broadbandusa site. Every thing you ever owned or every will own, tangible or nontangible, even pre-existing and future contract rights to easements and licenses are colladeral to the loan. So.... lets look at a case where someone might already have $1.5 mil personally invested in the company, and asking for a $500k RUS loan that comes with lots of limitations and matching contribution requirements, and no profit allowed initially? Why in the world would the applicant want to encumber pre-existing assets worth 3X the value of the loan? I decided not to, today. Its not worth it just to get a slightly better interest rate. Plus it could deter future investor options since all the ISP's assets would be already given as colladeral to RUS w/ first rights. But now lets look at it from a different position. Lets say the WISP had $500k invested so far, was low on finance options, and wanted to borrow $2-$3 million. If the Feds were putting in 6X the money that the ISP did, of course its reasonable that Feds want everything the ISP owned as colladeral, the Fed would be putting in higher risk. The loan program could be a great opportunity for the WISP in that situation. For BTOP, its different because its a grant. Its understandable some strings are attached for free money. The Feds do NOT have control of everything realted to your company. Just the portions related to the grant. The problem is that the liabilties to the Grant program as well are not worth assuming, to get things just to get them, with out a clear justification why you need them. For example, being force to give up profit for three years is a big deterent, and probably not worth doing in an area that can already be profitable without grants. But again, in the right situation, it could be a wonderful program for someone, if they have time to really qualify where it makes sense to get the grants for. Tom DeReggi RapidDSL & Wireless, Inc IntAirNet- Fixed Wireless Broadband ----- Original Message ----- From: "Travis Johnson" <t...@ida.net> To: "WISPA General List" <wireless@wispa.org> Sent: Thursday, August 13, 2009 12:56 AM Subject: Re: [WISPA] Grant > The question I think the small provider should ask... do you really want > to have to answer to the Government for the entire length of the grant? > Most small business owners are in business because they don't like to > take orders from other people. If you accept any grant or loan money, > you are going to have some government employee telling you what you can > and can NOT do with your company... your ENTIRE company, not just the > "parts" that got any funding. > > Travis > Microserv > > Tom DeReggi wrote: >> I disagree. Provisions were made in the grant to enable small providers >> to be eligible. >> The reason small carriers will not win many of these these grants is >> because we forgot to lobby for the most important point. >> That small providers need more than 30 days to prepare for a grant after >> the rules are published. >> Its very unlikely that small providers will have all the resources they >> need to back their applications with lots of meaningful fact. There just >> isn't time to develop it. >> The grant process exposes the weakness of small carriers, that they are >> stretched thin. >> >> I hope that WISPs that miss round 1, will continue there efforts to >> Round2. >> >> Tom DeReggi >> RapidDSL & Wireless, Inc >> IntAirNet- Fixed Wireless Broadband >> >> >> ----- Original Message ----- >> From: Bret Clark >> To: WISPA General List >> Sent: Wednesday, August 12, 2009 3:56 PM >> Subject: Re: [WISPA] Grant >> >> >> Sadly this program is not about creating jobs or supporting the small >> business owner who make up most of the work force in America. Its about >> expanding broadband and those who pay the most to their lobbyist will >> likely win the grants. >> >> Since Verizon and Comcast pay their lobbyist 6 figure salary's doesn't >> take much to figure out who will get the lions share of the money. >> Hopefully some of the little guys will get some money, but I'm not >> holding my breath. Clearly vendors are the big winners here, but they >> have no concern about expanding broadband...they only want to sell their >> products whether used in the middle of a city or the middle of a corn >> field. >> >> Trying not to be cynical, but having dealt with enough government run >> programs in the past, I've clearly have become a realist when looking at >> any government run program! >> >> >> >> Matt Liotta wrote: >> My two cents is that BIP/BTOP is going to be great for vendors and >> terrible for WISPs. The vendors don't care who gets awarded the money >> as long as they sell gear. >> >> -Matt >> >> On Aug 12, 2009, at 3:39 PM, Blake Bowers wrote: >> >> Just an observation. >> >> Lots of companies are asking for letters of support from >> public safety agencies. As Chief of my Fire Department, I have >> gotten a number of requests in the past week. >> >> The really interesting ones are the ones that >> >> A. Show no benefit to public safety other than they say >> broadband will be more available and cheaper. >> >> b. Come from companies that are my normal vendors in >> my business, that are branching out. Now, instead of selling >> me product so I can make money, they are going to put up >> their own, so they can compete with me in the leasing world, >> while they also provide broadband. >> >> Hmmmmmmm >> Don't take your organs to heaven, >> heaven knows we need them down here! >> Be an organ donor, sign your donor card today. >> >> >> >> -------------------------------------------------------------------------------- >> WISPA Wants You! Join today! >> http://signup.wispa.org/ >> -------------------------------------------------------------------------------- >> >> WISPA Wireless List: wireless@wispa.org >> >> 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: wireless@wispa.org >> >> 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: wireless@wispa.org >> >> Subscribe/Unsubscribe: >> http://lists.wispa.org/mailman/listinfo/wireless >> >> Archives: http://lists.wispa.org/pipermail/wireless/ >> >> >> ------------------------------------------------------------------------------ >> >> >> Internal Virus Database is out-of-date. >> Checked by AVG. >> Version: 7.5.560 / Virus Database: 270.12.26/2116 - Release Date: >> 5/15/2009 6:16 AM >> >> >> -------------------------------------------------------------------------------- >> WISPA Wants You! Join today! >> http://signup.wispa.org/ >> -------------------------------------------------------------------------------- >> >> WISPA Wireless List: wireless@wispa.org >> >> 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: wireless@wispa.org > > Subscribe/Unsubscribe: > http://lists.wispa.org/mailman/listinfo/wireless > > Archives: http://lists.wispa.org/pipermail/wireless/ > > > -- > Internal Virus Database is out-of-date. > Checked by AVG. > Version: 7.5.560 / Virus Database: 270.12.26/2116 - Release Date: > 5/15/2009 6:16 AM > > -------------------------------------------------------------------------------- WISPA Wants You! Join today! http://signup.wispa.org/ -------------------------------------------------------------------------------- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
