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Middle-mile Muscles Out Last Mile Spending in US Broadband Stimulus
Ovum, March 2010, Pages: 10
As we wait for the unveiling of the National Broadband Plan on 17 March 2010, we have already begun to see the National Telecommunications and Information Administration (NTIA) shift its bias to “middle-mile” projects rather than last-mile (access) projects for awarding the $7.2 billion broadband stimulus funding made available through the American Recovery and Reinvestment Act of 2009. The Rural Utilities Service (RUS), however, continues to fund last-mile access projects albeit with a smaller pot. Ovum believes the National Broadband Plan will include an ambitious, long-term follow-on effort to upgrade last-mile access everywhere, but particularly in unserved and underserved areas that receive money from the Universal Service Fund. There is plenty more spending to come, especially on fiber rollouts, but optical transport vendors stand to gain a bigger piece of the pie than access vendors in the immediate future.
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