NTIA Officials Urge Use of Agency Resources for Digital Equity Planning

WASHINGTON, January 13, 2023 – Regulation, reporting requirements, audits, and oversight can provide serious barriers to entities looking to receive funds from various federal broadband programs, said Vernonburg Group CEO Paul Garnett in a Thursday webinar hosted by wireless provider, Telrad.

These regulatory and financial barriers can make the difference between a successful and an unsuccessful project, he said. It is essential that applicants prepare all necessary documentation to satisfy requirements well before applying to these programs, he continued, identifying several key barriers states may face.

Irrevocable letters of credit, a guarantee for payment which cannot be cancelled during some specified time period, provide risk mitigation for program administrators and are often a key “difference maker” in making an application more competitive, Garnett said.

Its importance was highlighted as several applicants to the Federal Communications Commission’s Rural Digital Opportunity Fund won auctions for locations but were unable to qualify for funding due to not being able to raise irrevocable letters of credit, claimed Garnett.

Furthermore, he continued, audited financial statements spanning at least three years are often required for program applications. Regularly, applications will be rejected immediately when financial statements are omitted, he said.

Finally, although applicants may not anticipate a need, establishing lines of credit is an essential step to ensure that entities have the funding required for approved projects well in advance, said Garnett. He added that oftentimes, federal programs do not pay entities upfront but instead reimburse for expenses incurred.

Making Applications Simpler

The Vernonburg Group said it is working to make applications easier for entities by providing a simple visualization of basic mapping information in its free digital equity map released in December. Companies are able to easily create data visualizations and see correlation between national and local data sets, claimed its CEO.

The company works to help ISPs and state and local broadband program administrators identify locations eligible for funding by highlighting high scoring potential service areas on a heat map. It extracts availability, fixed broadband adoption, device ownership, and demographic statistics for any defined coverage area.



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