Perhaps the biggest first round winners of broadband stimulus grants, after the close of application deadlines Aug. 14 or Aug. 20, 2009 (larger projects will have the Aug. 20 deadline by virtue of an extension granted for electronic filers) are wireless providers, especially firms using terrestrial broadband for access.
There are several reasons. Wireless networks can be built faster, at lower cost, than wired networks, giving wireless providers a better chance of completing larger projects in the required time frame. The largest wired service providers seem to have decided not to apply, for a variety of reasons having to do with the way the rules are constructed and strings attached to receipt of funds.
Also, existing wireless providers, especially independents, have the infrastructure and business acumen required to run such networks, and huge incentive to build out their networks.
In the last major investment wave in the U.S. telecommunications market, though there were hundreds of upstart firms launched, most market share was controlled by just tow companies, AT&T and MCI. Since it appears the largest carriers will sit out the broadband stimulus program, the field is cleared for medium-sized firms to get the funding.
Most of those companies, even those building new middle-mile optical trunking facilities, will rely on wireless for the final mile connections.
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