Criticism has included its alleged inadequacy to properly address the rural
broadband challenge to allegations of inefficiency and outright incompetency of
the government agencies tasked with managing it. It was even recently
called the ?cyber bridge to nowhere.?
If you listen long enough, you?d think this program is a complete waste of time.
But don?t tell that to William Wallace, chairman of DigitalBridge Communications
(DBC), a rural WiMAX operator based in Ashburn, Virginia. ?We think the
broadband stimulus program is great for the country, great for the WiMAX
ecosystem, and great for DigitalBridge Communications,? Wallace told us in a
recent interview. ?DBC is ready to hit the ground running with numerous
shovel-ready projects across multiple states.?
DBC sounds motivated. According to Wallace, DBC has a proven model for
deploying broadband in underserved rural territories, and the stimulus program
is just what the doctor ordered. In addition to building out underserved
communities, Wallace says they?re bringing jobs to the local communities they
serve, including local home based customer service representatives.
DBC also thinks WiMAX is the way to go. ?If a significant amount of the
broadband stimulus money went to WiMAX, we?d be able to get broadband out to
more markets faster,? says Wallace. ?We can deliver 5 Mbps now, and expect
that to get better as the technology progresses.? Obviously DBC is somewhat
biased given their business model is based on WiMAX, but their arguments have
some validity.
The idea that this country ?needs? to get FTTH to every home in rural America is
preposterous. That argument fails to recognize that many homes in rural
areas (and urban for that matter) simply don?t need/want FTTH connectivity ? not
to mention the cost in getting it there. Outside a rural town?s core
center, broadband wireless technologies like WiMAX and other 4G technologies
should absolutely be part of the equation. Complementing a robust wireline
broadband network with broadband wireless connectivity for the most rural part
of a community makes good financial and operational sense. As Wallace
points out, ?? very few low density rural markets work for broadband unless
you?re using technologies like WiMAX.?
Wireless is the way to go in many instances, but unfortunately, one critical
broadband wireless issue ? poor spectrum policy – gets lost in the passionate
arguments about rural broadband. Rural broadband wireless can?t happen in
the many underserved territories where it makes sense because access to spectrum
by operators interested in serving those same communities is limited.
There are willing carriers, both incumbent wireline and wireless, who would
gladly shoulder the rural broadband challenge if they had access to spectrum.
All too often, that spectrum is held by entities either unwilling or unable to
serve those territories. In fact, if regulators really wanted to
positively impact rural broadband, reforming spectrum policy to encourage (or
maybe even mandate) spectrum leasing and partnering could have a profound
effect.
Wallace believes DBC has the spectrum issue figured out as well. ?Service
providers and local communities should partner together to obtain spectrum.
It?s a model that we?ve been quite successful with. Our Appomattox,
Virginia market is a great example of a public-private partnership to obtain
spectrum and bring broadband to an underserved community. We now have 30%
penetration of that market and expect to go EBIDTA positive soon,? he said.
Wallace believes this model could be replicated in many other underserved
communities. With the May 2011 deadline for EBS spectrum use looming,
Wallace believes ?? there is plenty of opportunity and room for service
providers, both incumbent and new entrants, to partner for spectrum.? DBC?s
efforts have secured spectrum for about 3 million pops, although they haven?t
launched service in all those territories yet.
Regardless of all the debate and argument surrounding the broadband stimulus
plan and rural broadband in general, DBC plans to move full speed ahead.
?We view the stimulus plan as a very strong growth opportunity for DBC,? says
Wallace. We agree. The stimulus plan is not perfect and it will not
completely solve the rural broadband challenge. But rural service
providers should ignore the cynics and view it as a growth opportunity – one
that is there for the taking.
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