Client Resource Group

On February 17, 2009, President Barack Obama signed into law a massive $787 billion economic stimulus plan, the American Recovery and Reinvestment Act of 2009 (Act or Stimulus Bill). Of those funds, $7.2 billion has been allocated for broadband loan and grant programs including some that focus on rural areas that are underserved or not served at all. The bill is focused on rapid deployment of the funds to give a quick boost to the economy. Timelines project a two-year requirement for disbursement and deployment of the broadband funds.

On that same day, CHR Solutions sent an e-mail inviting you to our webinar to provide information and our initial interpretation of the 1,100 page bill. Many of you attended one of our two webinars. If you were unable to attend, attached for your information is a copy of the PowerPoint used. Feel free to share this with others in your company.

CHR continues to monitor activities regarding the Stimulus Bill and the potential monies available from the National Telecommunications and Information Administration (NTIA) and/or Rural Development Utilities Program (RDUP). Jo Shotwell, Sr. Vice President – Regulatory and Compliance, has been in contact with NTIA and Rick Overman, Executive Vice President and Chief Development Officer, has been in communication with RDUP. As you may expect, both agencies are overwhelmed and working vigorously to establish the rules and processes for handling the potential flood of applications for the available funds.

On February 24, 2009, NTIA announced in the Federal Register it will begin holding meetings with interested parties beginning March 2, 2009 regarding the Broadband Technology Opportunities Program established by the Act. A second announcement was made on February 27th announcing NTIA, USDA and the FCC will hold a series of public meetings to discuss the broadband provisions of the bill. The first meeting is scheduled for March 10th at NTIA headquarters in Washington, D.C. It will focus on the broadband initiatives funded by the Act, including the new Broadband Technology Opportunities Program and the development of a national broadband plan.

Currently, we are assembling a Client Resource Group to allow for sharing and dissemination of information gained from our continued advocacy and participation in this process. Through our participation in the announced meetings, we will be able to develop a better understanding of the processes, the application format and procedures as they evolve. Our participation will allow CHR to more effectively represent the interests of our clients who are considering applications for stimulus funds.

We believe participation in the process is critically important for the next few months as the rule making and process development activities continue. As information is gained, we intend to communicate with our Client Resource Group through e-mails, webinars and conference calls to keep you informed as the activities progress. The client group participation will allow us to share our labor costs and travel expenses to attend the meetings. The anticipated level of client involvement should limit the participation cost to be no greater than $500 per month per participating company (less if a greater group is assembled) plus a prorated share of the out-of-pocket travel expenses. As you are aware, the Administration desires that the funds flow into the marketplace as quickly as possible. Because of this “speed to market” push, we anticipate CHR’s monitoring effort should last for only a few months.

If you have an interest in participating in our Client Resource Group, contact us as soon as possible. We will be pleased to assist you any way we can. We expect there to be significant activity in all industry sectors related to this legislation. Because of the rush of activity in the telecom space speed is of the essence in determining how you will pursue the opportunities presented. We believe participation in the Client Resource Group and risk managed efforts of preliminary development of applications elements are exceptional first steps. Being proactive will position your company to take advantage of the Stimulus Bill loans and grants.

CHR has already been in discussions with some of you and we have been engaged by several clients to prepare the basic elements of an application. While many of the rules, processes and procedures are not yet clear, we believe that certain basic elements will be required in any application, whether a loan application or a grant. CHR proposes that we begin the process of gathering initial information, preparing assumed essential elements of the application (market data, financial information, project descriptions and maps, etc) as soon as possible. This will allow for timely revisions and updates to the information and rapid submission of the package as the final rules and processes are announced.

If you are interested in participating in the Client Resource Group and/or beginning basic element preparation for a grant or loan application, please respond to this e-mail. Your CHR Account Representative, Jo Shotwell, or Rick Overman will return your call to discuss further.