Knock knock, ARRA. Where will you invest?

The National Telecommunications and Information Administration (NTIA) and the Rural Utilities Service (RUS) announced recently that they received nearly $28 billion in grant requests for the first round broadband funding through the American Recovery and Reinvestment Act (ARRA). Approximately $4 billion has been allocated to be awarded in the first round of available funding – this is out of $7.2 billion total broadband grants available under ARRA.

NTIA and RUS reported that tallies indicate almost 1,500 applications for broadband infrastructure projects and over 300 applications for broadband adoption and public computer programs. Again – these requests have been made under just the first round of available funding, which gave potential grantees a mere five weeks from publication of the Notice of Funds Availability to the application’s due date.

So, it seems there are lots of ideas for how to invest in broadband infrastructure, and a lot of need to go with it. With a national broadband policy still under development, it will be interesting to see which applications are selected, how the use of these funds will shape the future of broadband policy and what changes will be realized in the telecommunications industry overall.

And while the broadband landscape changes, how will this impact other telecom industry infrastructure? According to The Economist, if landlines continue to decline at the current rate, they could be extinct by 2025. This scenario creates its own challenges – a cell phone can sometimes replace a home phone line, but could businesses easily replace landlines? And what about emergency services? Do businesses and individuals without cell phones end up paying more for a critical phone line which, while not as exciting as broadband, is nevertheless a lifeline utility? And with decreased demand, how many remaining customers are paying into the Universal Service Fund? A complementary opinion piece in The Economist calls for regulators to respond to these complex challenges.

Meanwhile, mobile networks continue to grow from investments in 3G and 4G networks. There is talk of possible scrambling to obtain or retain deals with Apple for rights to the iPhone, seen as a compelling enticement for getting customers to sign up with a particular wireless carrier.

All this is to say – you won’t have to look far to see folks waiting on the edge of their seats to see how ARRA broadband funds are invested. Not only will these investments impact broadband evolution, but they will also have a strong influence upon the changing tide telecommunications period – landlines, wireless, voice, data and video. Hopefully there are some exceptional ideas within the 2,200 applications submitted a few weeks ago and, with any luck, these ideas can be sifted through for the best investments to foster innovative broadband and telecom policies for the country.