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How to Protect Your Network

from a Broadband Stimulus


Overbuild:
The RUS Filing of May 23, 2010

PrattNetworks LLC
A Telecom Sector Advisory Firm
 Cable Operators

 Operating Telcos

 Wireless Operators

 While the federal broadband stimulus program has many


positive aspects, overbuilding of existing investor owned
broadband networks is occurring. Acting now is your best
protection against it happening to you.

Who Cares ?
 “If you don‟t file, you don‟t count.”

 The current open filing period of the Rural


Utilities Service (RUS) of the USDA is the
only mechanism left to register your
broadband service area.

 Deadline: Sunday, May 23, 11:59 PM


(CDT)

Why is this so important ?


 776 Round 2 applications to RUS asking
for $11.2 billion, in 11,878 service areas.

 RUS will fund $2.2 billion in projects.

 The RUS loan/grant standard in Round 2


is 25/75. The risk is 75% grant funding,
25% low interest loan funding, of a
competitor in your present footprint.

What is the risk?


 Each of the 776 applications applied for 1
or more service areas. Together all those
applications = 11,878 service areas.

 Many of the 11,878 overlap each other.

 Some of the 11,878 overlap your territory.

11,878 of what?
 Texas: 1,077
 Michigan: 723
 Illinois:607
 Iowa:582
 Georgia:411
 Colorado:255
 New Mexico:178
 California: 174
 Alabama:143

Some state service area counts…


 The key to determining your risk of
overbuild is to quickly identify which of
your currently serviced communities are
in which service area of which applicant.

 But, here‟s the rub………

Service areas have communities


 …the RUS database, even with its
mapping tool, is very difficult to access by
community, for all but the smallest
operator areas.

 Finding your communities in specific


applicant service areas therefore becomes
a time consuming and error prone
process, and...

What communities are proposed


by which applicant?
 …you are required to file a response ONLY to
a specific applicant‟s specified service area.

 Applicants are listed in the federal database


in a national „flat file.‟ You are required to
sort through it to determine who is proposing
to build in your area.

 You can‟t simply file your territory as a stand


alone report.

I know my communities, so who


cares about the applicants?
 Nope. You‟re not OK.

 Only by filing with RUS, via its system and by


05/23, are you protected from RUS monies
going into your area.

 Your FCC Form 477 filings, or previous


requests from NTIA or RUS Do NOT count to
protect you in the RUS proceeding.

I filed my state broadband report.


Am I covered for RUS?
 Large operating cable, telco, and wireless firms have
the personnel and IT resources to find the data, and
get it filed.

 Small – medium size firms are at a disadvantage in


finding and submitting the right data, for resource
allocation reasons alone.

 Rural operators are further disadvantaged as their


service areas can often cover extensive regions,
driving the level of data necessary to manage.

How will I get this all done?


The Service Area MatrixSM

 Reporting and analysis for your service area.

 Give us your counties, you get the report.

 All applicants, by county, and by community.

 Our accurate and automated process saves scores of


hours of manual searching, letting you focus on the
key decision of where and why to respond.

We aggregate the federal data,


so you don’t have to.
The Service Area Matrix SM

Area: 5 Counties in DFW Metro

Collin Dallas Grayson Hunt Rockwall


COBALT BROADBAND CORPORATION
Project Palmer 1
Project Sinton 1
GRANGER TELECOM CORPORATION
SouthTexas Broadband Services 1
GTEK COMPUTERS AND WIRELESS LLC
West Corpus Christi 1
INSIDEMYCITY LLC
Campbell, TX (CAM) 1
Cumby, TX (CUM) 1
Dallas, TX (DAL) 1
KEYON COMMUNICATIONS, INC.
OT_01 1
TIERONE CONVERGED NETWORKS, INC.
Golden Path 1 1 1
TOCN-TX 1 1 1
Total Service Areas: 4 3 2 4 1

Number of Applicants 6
Number of Service Areas 10
Number of Counties: 5

The Service Area Matrix


The Service Area Matrix is a Service Mark of PrattNetworks LLC. All copies of the Service Area Matrix are Copyright 2010 by The SAM JV, and joint venture of corporations. All
Rights reserved,. No Derivative Works Allowed.
The Service Area MatrixSM

 Pricing: $425 for 5 counties.

 Tiered discounts at set pricing for additional counties.

 Decision support to help you determine what service


areas you need to file in. Priced at discounted
consulting rates.

 Filing support to mange the actual submittals on your


behalf, and/or with your personnel. Priced at
discounted consulting rates.

We support you through the


entire process.
 Under 768 Kbps service today =
unserved

 Under 5.0 Mbps service today =


underserved

 5.0 Mbps & above service today = high


speed

Caution: 5.0 Mbps & The Rules


 Although over 768 Kbps service today =
broadband, federal funds may still be
used to overbuild you unless you are
providing access to 50% of your footprint
at above 5.0 Mbps.

You need to file to protect


yourself, but understand…The
Rules.
Peter Pratt, Principal

PrattNetworks LLC
A Telecom Sector Advisory Firm
Boston – San Francisco

617-418-4696

MappingBroadband.net
info@mappingbroadband.net

Thank You

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