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Stimulus FAQ

The following frequently asked questions and answers are based upon librarians' questions about the BTOP and BIP programs. As you know the process for these applications is still evolving. Also there is a wide variety of situations and options for local libraries in determining if or how they might apply to benefit from these ARRA broadband funds. This FAQ site will change regularly as we get more questions and new information.

Please be advised that these questions are answered to the best of our knowledge with insight and expertise from ALA staff and consultants. You may also want to consider consulting the official BTOP and BIP FAQ pdf for your questions. For specific language and guidelines please refer to the NTIA website and you may want to consult with your state library agency.

We will update the FAQ as NTIA and RUS provide new information and we receive more of your questions. Please continue to look through the KYS website as you work on your ARRA applications. For general definitions of the terms associated with the ARRA programs please refer to the KYS glossary.

Eligibility

Public Computing Centers

Sustainable Broadband Adoption

Infrastructure

Other/General

 

Eligibility


Is furniture for an internet café build out an eligible expense?   
Furniture may be eligible if it is necessary for expanding computer center capacity for the public.  For instance, it is likely that chairs are an eligible expense if the chairs are used to sit at the workstations.  But decorative furniture will probably be viewed skeptically.  Keep in mind that, in order to be funded, the purchase of equipment must be “used predominantly for the provision of broadband education, awareness, training, access, and equipment and support” (NOFA line 822).


Can volunteer services be counted as an in-kind match?   
 Yes but please refer to the official NTIA/RUS FAQs section IV C 11 for the full text: “Unpaid volunteer services furnished by professional and technical personnel, consultants, and other skilled and unskilled labor may be counted as cost sharing or matching if the service is an integral and necessary part of the grant-funded project.”


Are personnel costs for lab monitors/instructors legitimate costs?   
Yes, but please refer to the official NTIA/RUS FAQs section IV B 5 for the full text.

“The costs of hiring employees and paying salaries are eligible costs for Public Computer Center and Sustainable Adoption projects if the employees’ job functions are directly related to one or more of the activities listed as eligible costs for Public Computer Center or Sustainable Broadband Adoption projects (e.g., developing and providing training, education, support and awareness programs, or web-based resources).”

Even in these programs, however, applicants should be careful to make sure that the operating costs are directly related to the program purposes.  For instance, the staffing must be involved in expanding the public’s access to computers or to encouraging broadband demand.  Also, if this staff is intended as ongoing operating expenses that continue after the end of the three years of funding, the applicant must demonstrate how these costs will be sustained after the funding ends.


What entities are eligible to apply?    
Many types of organizations are eligible for these BTOP and BIP programs. All types of libraries can potentially apply for funds, especially in the Public Computing Center and Sustainable Broadband Adoption programs. While some of the programs in RUS must focus libraries serving rural communities, BTOP provides the opportunity for rural, suburban, and urban libraries to apply. Public libraries, school libraries, and academic libraries may all apply.


Who can apply and in which round?   
Just about anyone can apply for funding (at least for this round). They will issue new NOFAs for the second and third rounds.


Are these grants more for homes or for anchor institutions?   
The NOFA appears to be more favorable for broadband providers to serve rural residences. However, the NOFA does allow anchor institutions to apply for funding to build broadband facilities. The rules for doing so are somewhat complicated, and at this point we are not sure whether it is feasible for anchor institutions to receive funding. Nevertheless, anchor institutions are encouraged to apply. We are asking NTIA to make changes in the NOFA in the second and third rounds of funding to be more accommodating for anchor institutions.


What are the programs that libraries are eligible for and how much is available for each program?   
There are three programs in this round of funding for the ARRA. They are: Infrastructure, Public Computing Center, and Sustainable Broadband Adoption. For a full discussion of what these programs involve and to determine which program your project best fits please see out Know Your Stimulus website and the guide documents our office has prepared. You should also read the NOFA (Notice of Funding Availability) and the grant guidelines at the NTIA.


The mapping NOFA requires a competitive grant process and yet also allows each state to designate a single eligible entity to receive an award. If the state designates a single eligible entity, the process will not be competitive, but if the process is truly competitive, a state cannot designate a single eligible entity. How are these two provisions to be reconciled?   
It is expected that each state will issue an RFP and go through a competitive bid process before selecting a single entity to conduct the mapping.


Can existing competitively bid state contracts qualify for NTIA/RUS funding?   
To receive funding, the applicant must show that it would not have accomplished the project without the federal funding. In other words, if you were already planning to build a broadband capability under a state contract, you cannot get funding from NTIA/RUS. If, however, you want to expand upon the state contract to build a new portion of the network not covered by the state contract that may be eligible for NTIA/RUS funding.


If an area has access to broadband that already exceeds the stated definition of broadband, but the subscribership is not clear, would that community be ineligible to apply?   
If the area is “served” by broadband facilities, and broadband service is advertised that offers speeds greater than 3 Mbps, then you can only be eligible if less than 40% of households subscribe to broadband. NTIA is encouraging applicants to put “feet on the ground” to determine how many households in a census block area subscribe to broadband. Keep in mind that the number of households in a census block may be quite small (about 20 households), so it may be possible to survey them to find out whether or not they purchase broadband. If you cannot acquire this data, then you can provide NTIA with some reasonable estimates and hope that the telcos/cablecos do not challenge your application with contradictory data, (but applications relying on conjecture will not be scored as highly).


Is there any provision made for a large percentage of the populations that cannot afford broadband?   
Most of the statute and the NOFA emphasizes the need to build networks and purchase equipment. However, one of the programs – Stimulating Broadband Adoption – provides funding for entities that can help promote adoption and use of broadband services. These programs may be useful to low-income people who cannot afford broadband service. These programs are intended to be short-term stimulus programs and are not intended to provide long-term subsidies for low-income persons. The Federal Communications Commission may adopt programs to provide longer-term subsidies.


Can funding be used to simply increase a library’s current broadband service from a telco?   
Funding to upgrade an existing broadband service connection is permitted, but the prospects for obtaining funding are murky. The infrastructure program is intended to promote jobs from constructing broadband facilities. Simply ordering an additional T1 line (for instance) is probably not contemplated. But building a fiber ring or a wireless network to connect the library and many other anchor institutions may fit the purposes of the program.


Are any of the programs available for libraries needing to increase bandwidth for patrons using public access computers within libraries?   
The statute appears to encourage the construction of broadband facilities to libraries and other anchor institutions. Unfortunately, the rules do not make it easy for libraries to obtain this funding. All applications to build broadband infrastructure are intended to serve unserved or underserved areas. For “Middle Mile” projects such as service to libraries, at least one end point in the network must terminate in an unserved or underserved area. As long as there is one such end point, funding can be obtained to build the entire network. The application goes on to request information from each applicant concerning the residential community surrounding the library (a service that libraries do not generally provide).


Does sustainable refer to the project's ability to outlast the duration of the grant in this case?   
Yes. The federal government wants to fund projects that will provide long-term benefits and will not cease to exist once the funding stops. Ideally, you will want to show you can afford to pay the ongoing costs of service after the initial build-out, or that you have arranged for alternative financial support (from e-rate, the state, a foundation, or elsewhere) once ARRA funding ends.


For Division of Libraries, what are our chances are of getting funding for projects such as bringing on about half the public libraries in the state to wireless and RFID for all?   
The chances will depend a lot on the populations that will benefit from the wireless connection. Will the wireless connections make it easier for elderly, low-income, disabled etc. people to use the libraries’ services? The big emphasis in the statute and the rules is that applicants must show how they are serving “vulnerable” populations. Added points are given for improving health care, public safety, and creating jobs.


Can a law library and a library in the same town do a grant together?   
Yes. In fact, aggregated grants are encouraged because NTIA may not have the resources to process a lot of small grant requests. Keep in mind, however, that libraries serving vulnerable populations will receive a higher score and will be more likely to receive funding.


Are urban libraries eligible for the public computer program funding?   
All libraries are eligible for this program, including urban, suburban and rural. There is no requirement to be in an unserved/underserved area. However, libraries that can demonstrate they serve “vulnerable” populations (aged, disabled, low-income, etc.) will receive a higher score and are more likely to receive funding.


 

Public Computing Centers


For the Public Computer Center category, does a Library system have to be in a rural, underserved area to qualify? Or can an urban Library system with plenty of broadband qualify? 
No, you do not have to be in a rural or unserved/undeserved area for this program. All libraries are eligible, including urban libraries. But to score highly enough to be granted funding, you will likely have to show that you are serving a vulnerable population (elderly, low-income, disabled, etc.)


While my library has P.C.s for the public, we are not networked and are running on 2 DSL lines which (on good days) function as a kind of T1 connection. Currently my staff spends a lot of time doing updates to all of the PCs because they're not on a server. My question is: Would these funds be available for connection/wiring upgrades and networking purchases (i.e. servers)?   
If the connection/wiring/networking funding is to enhance the broadband connection to the Internet, it will have a much better chance than an application simply networking computers to each other. It is important to demonstrate how funds will be used to give the public access to the Internet over a broadband connection. Since your existing broadband connection is slow (DSL), it may be possible also to receive funding for a better broadband “pipe” (better than DSL). While broadband connections are generally covered by e-rate and the Infrastructure fund, it is theoretically possible to receive money for a bigger broadband connection out of the PCC pot of funding if it is combined with funding to purchase additional computers, software, inside wire, etc.


Can you apply for a computer center project that also draws upon the broadband adoption funds?   
You can, of course, apply, but it will be difficult to obtain funding from the broadband adoption set of funds simply for the computer project. To be successful, you must have a training program and outreach program to show how your computer center project and training will increase the number of households that subscribe to broadband service. NTIA will want to know how many households subscribe before the grant, and how you plan to measure and document how many households subscribe after your grant. Keeping track of whether consumers purchase broadband from their homes will be challenging, but it can be done.


For computer centers, is it ok for one library to apply for it or should be part of a collaborative larger project?   
Collaborative, aggregated applications are more likely to receive funding for administrative reasons - NTIA may simply not have time to process large numbers of individual applications.


If you want a computer center and are 100% rural, must still go through RUS first?   
No. Only applications for rural “infrastructure” need to go to RUS first. Applications for public computer center capacity and to stimulate broadband adoption are not “infrastructure” and you may apply directly to NTIA/BTOP.


Libraries are usually not ISPs, but BIP and BTOP seem to favor ISPs/vendors as applicants. Does this mean libraries shouldn't bother to apply for anything other than the Public Computing Centers portion?   
It is difficult to answer this question. The infrastructure program seems to favor companies that offer residential service. However, the rules encourage libraries and other anchor institutions to apply for funding out of the “Middle Mile” bucket of funding. The requirements on “Middle Mile” applicants are not as difficult as “Last Mile” applicants – Middle Mile applicants only need to serve one unserved/underserved census block, for instance, and NTIA encourages libraries to apply for broadband funding. But the application requirements even for this funding are nevertheless significant.

In addition to the funding for Public Computer Centers, a library may be able to apply for funding to Stimulate Broadband Adoption ($150M is available this round) if it can develop a program to encourage residential consumers to subscribe to broadband.


 

Sustainable Broadband Adoption


How can we determine rate of broadband subscribership?   
If the area is “served” by broadband facilities, and broadband service is advertised that offers speeds greater than 3 Mbps, then you can only be eligible if less than 40% of households subscribe to broadband. NTIA is encouraging applicants to put “feet on the ground” to determine how many households in a census block area are subscribing to broadband. Keep in mind that the number of households in a census block may be quite small (about 20 households), so it may be possible to survey them to find out whether or not they purchase broadband. If you cannot acquire this data, then you can provide NTIA with some reasonable estimates and hope that the telcos/cablecos do not challenge your application with contradictory data, (but applications relying on conjecture will not be scored as highly).


 

Infrastructure


What is a middle mile project?   
A Middle Mile project is defined as a broadband infrastructure project that does not predominantly provide broadband service to end users or to end-user devices, and may include interoffice transport, backhaul, Internet connectivity, or special access. Nevertheless, the rules appear to provide an exception to this definition because service to “anchor institutions” (libraries, health care entities, colleges, etc.) will be considered as “Middle Mile” applications. For instance, p. 18 of the Grant Guidelines says, “RUS and NTIA anticipate that some applicants will [create] a regional fiber ring to connect schools, hospitals, or other community anchor institutions. RUS and NTIA welcome such proposals. A project of this nature should be characterized as a middle mile project as it is essentially a point-to-point network connecting a relatively small number of facilities.” You can find a glossary of terms at this url: http://ala.org/ala/issuesadvocacy/advocacy/knowstimulus/FAQ/index.cfm#Glossary.


Can middle-mile funds be used for only WAN-type connectivity or can it be used to also improve LAN infrastructure?    Middle Mile funds are intended to construct the broadband “pipe” outside the library. Applications for funding for networking costs inside the library building probably have to be directed at the program to expand Public Computer Center Capacity.


If last mile projects are defined as including anchor institutions as end users, how can they also be included in middle mile projects, which are defined as primarily not delivering services to end users?   
Yes, there is an inconsistency in the definition and the NOFA Application guidelines. We have been told orally by NTIA staff that applications to provide service to anchor institutions will be considered as Middle Mile applications, even if it includes last mile capacity. The NOFA Application guidelines (which were probably written after the definition of Middle Mile was written) back up what we were told orally.


Are proposals to expand advanced broadband (20-100mb) to schools and libraries through installing last mile and middle mile fiber well aligned with the objectives of the NOFA?   
No. The NOFA does not contain a definition of broadband that is most applicable to anchor institutions. The NOFA defines broadband as a minimum of 768 kpbs (down), which is an indication that the NOFA was drafted with the needs of residential customers in mind, not the bandwidth needed by anchor institutions. Many other rules make it difficult (but not impossible) for schools and libraries to apply for fiber. Nevertheless, schools and libraries that have a need for a fiber connection should strongly consider filing applications for funding because constructing a fiber network would satisfy many of the overarching goals of the legislation (creating jobs, stimulating economic growth, providing broadband service to disadvantaged populations, promoting health care and education, etc.)


Will the rules continue to contain the requirement for libraries to meet the unserved and underserved requirements if we can apply for middle mile funds?   
All applications to build broadband infrastructure are intended to serve unserved or underserved areas. For “Middle Mile” projects, such as service to libraries, at least one end point in the network must terminate in an unserved or underserved area. As long as there is one such end point, funding can be obtained to build the entire network.

Several groups have raised objections to applying “unserved and underserved” requirements to libraries and other anchor institutions. We are hoping that NTIA will change this rule in the second and third rounds of the NOFA.


What statistical sources can be used to verify the 40 percent underserved requirement for the BTOP program   
This information is not readily available. NTIA is encouraging applicants to put “feet on the ground” to determine how many households in a census block area subscribe to broadband. Keep in mind that the number of households in a census block may be quite small (about 20 households), so it may be possible to survey them to find out whether or not they purchase broadband. If you cannot acquire this data, then you can provide NTIA with some reasonable estimates and hope that the telephone companies and cable companies do not challenge your application with contradictory data, (but applications relying on conjecture will not be scored as highly).


Are any of the programs available for libraries needing to increase bandwidth for patrons using public access computers within libraries?   
The statute appears to encourage the construction of broadband facilities to libraries and other anchor institutions. Unfortunately, the rules do not make it easy for libraries to obtain this funding. All applications to build broadband infrastructure are intended to serve unserved or underserved areas. For “Middle Mile” projects such as service to libraries, at least one end point in the network must terminate in an unserved or underserved area. As long as there is one such end point, funding can be obtained to build the entire network. The application goes on to request information from each applicant concerning the residential community surrounding the library (a service that libraries do not generally provide).


Can funding be used to simply increase a library’s current broadband service from a telco?   
Funding to upgrade an existing broadband service connection is permitted, but the prospects for obtaining funding are murky. The infrastructure program is intended to promote jobs from constructing broadband facilities. Simply ordering an additional T1 line (for instance) is probably not contemplated. But building a fiber ring or a wireless network to connect the library and many other anchor institutions may fit the purposes of the program.


 

Other/General


How do we use E-rate discounts as part of these projects?   
E-rate funds may NOT be used for matching funds in an application. However, the receipt of E-rate funds can be described and used as part of the argument about how you will sustain your BTOP project. Note: If a library users E-rate funds and references them as part of your sustainability case, the library would then have to filter to be in compliance with E-rate’s CIPA requirements, (even though ARRA has no CIPA requirements.)


If a service provider gives a discount from what would be fair market value of a service or item, can that count towards the 20% match?  For example, the service provider's regular fee is $150/hour, but because we are partners, the service provider will only charge half that.  Can the other $75/hour count as a cash match?   
No. The revised Frequently Asked Questions issued by NTIA/RUS (Section IV C 7 and available on broadbandusa.gov) states that discounts may not be used to satisfy the 20% match. The FAQs say that the discount will represent a reduction in the overall cost of the project."


If our proposal is rejected during round one, can we resubmit for round two or three?   
Yes.  You can resubmit a proposal in any of the subsequent rounds.


Where can I find the webinar slides and video?   
All webinars and their corresponding slide decks and videos are at the District Dispatch and at this page in the Advocacy University. We suggest you subscribe to the Dispatch to stay abreast of developments and updates.


Where can you find the BTOP requirements?   
All the information concerning these programs is available at broadbandusa.gov.


Is there a benefit to applying as part of a larger entity such as a library consortium or a multi-type aggregation (as part of a municipal or state application for example)?   
 The message from the Broadband Application Training Workshop in Washington, DC was that applications that aggregate the demand for broadband a variety of government entities and/or organizations are likely to be viewed more favorably.


What is the benefit to my library if I work with other groups, including education and healthcare entities?   
ALA has been working with a number of these groups to promote the concept of anchor institutions. These institutions extend broadband service to large numbers of people throughout the community. See the Schools, Health and Libraries Broadband (SHLB) Coalition mission statement for an example.


What do the reporting requirements entail?
There will be regular and extensive reporting requirements. OMB requires recipients of funding to submit reports within 10 days of the end of each quarter concerning their receipt and use of funds. There will also be additional reporting requirements depending upon the type of award you receive.


How much will the governor's prioritization/lack of prioritization in Phase 2 of the review process really count towards getting the grant from NTIA? What if a governor simply does not respond by the deadline? What if a governor actually vetoes a proposal, but NTIA thinks it is a worthwhile project?   
The influence of the Governor will vary state-to-state. The Governors have no authority to “decide” which application is granted; they can only provide advice and recommendations to NTIA. If the Governors advice is thoughtful and backed by evidence, NTIA will likely give it great weight. If not, if the Governor’s advice is obviously politically motivated, or if the Governor’s advice is late, NTIA may ignore the Governor’s recommendations altogether. Nonetheless, applicants should work hard to receive the Governor’s support.


If all the money is not distributed in Round 1, will it roll over to Round 2?   
Yes.


What is the schedule for the 2nd and 3rd rounds on BTOP?   
The schedule has not been published yet. We expect applications for the second round of funding to be due at the end of 2009 and the third round in the spring of 2010.


Is it better to apply in round one of funding than in a subsequent round?   
It depends on the nature of your project and the quality of your application. If you are confident you can get all the required pieces together and make your case by the first round deadline of August 14th you should consider applying in round one.


Glossary   

All Definitions from: Final NOFA with Disclaimer (pdf)

Administrator means the RUS Administrator, or the Administrator’s designee.

Applicant means an entity requesting approval of an award under this NOFA.

Assistant Secretary means the Assistant Secretary for Communications and Information, National Telecommunications and Information Administration, Department of Commerce, or the Assistant Secretary’s designee.

Award documents mean, collectively, grant agreement, loan documents and/or loan/grant combination documents.

Award means a grant, loan, or loan/grant combination made under this NOFA by either RUS or NTIA.

Awardee means a grantee, borrower, or borrower/grantee.

BIP means the Broadband Initiatives Program, administered by the RUS, under the Recovery Act.

Borrower means the recipient of a RUS loan under this NOFA.

Borrower/grantee means the recipient of a RUS loan/grant combination under this NOFA.

Broadband means providing two-way data transmission with advertised speeds of at least 768 kilobits per second (kbps) downstream and at least 200 kbps upstream to end users, or providing sufficient capacity in a middle mile project to support the provision of broadband service to end users.

BTOP means the Broadband Technology Opportunities Program, administered by NTIA, under the Recovery Act.

Build-out means the construction or improvement of facilities and equipment as specified 391 in the application.

Composite economic life means the weighted (by dollar amount of each class of facility in the loan) average economic life of all classes of facilities financed by a BIP loan.

Community anchor institutions means schools, libraries, medical and healthcare providers, public safety entities, community colleges and other institutions of higher education, and other community support organizations and agencies that provide outreach, access, equipment and support services to facilitate greater use of broadband service by vulnerable populations, including low-income, unemployed, and the aged.

Critical community facilities means public facilities that provide community services essential for supporting the safety, health, and well-being of residents, including, but not limited to, emergency response and other public safety activities, hospitals and clinics, libraries and schools.

Current ratio means the BIP applicant’s current assets divided by the current liabilities; all financial terms are defined by GAAP.

Economic life means the estimated useful service life of an asset as determined by RUS in connection with awards made under BIP.

Forecast period means the time period used by RUS and NTIA to determine if an application is financially feasible. Financial feasibility of an application is based on five-year projections.

GAAP means generally accepted accounting principles.

Grant agreement means the agreement between RUS or NTIA and the grantee for grants awarded under this NOFA, including any amendments thereto, available for review at http://www.broadbandusa.gov.

Grant funds mean federal funds provided pursuant to a grant made under this NOFA.

Grantee means the recipient of a grant under this NOFA.

Last Mile project means any infrastructure project the predominant purpose of which is to provide broadband service to end users or end-user devices (including households, businesses, community anchor institutions, public safety entities, and critical community facilities).

Last Mile Non-Remote project means any broadband infrastructure project (or group of projects) that is not exclusively a last mile remote area project, and that provides broadband service to the end user or end-user devices in a service area eligible for BIP funding.

Last Mile Remote Area project means any broadband infrastructure project that provides broadband service to the end user or to end-user devices only in a remote area(s) eligible for BIP funding.

Loan means any loan made under this NOFA by RUS.

Loan contract means the loan agreement between RUS and the borrower, including all amendments thereto, available for review at http://www.broadbandusa.gov.

Loan documents mean the loan contract, note(s), and security instrument between the borrower and RUS and any associated documents pertaining to the loan.

Loan/grant means any loan/grant combination made under this NOFA by RUS.

Loan/grant contract means the loan/grant contract between RUS and the borrower/grantee, including all amendments thereto available at http://www.broadbandusa.gov.

Loan/grant documents mean the loan/grant contract, note(s), and security instrument between the borrower/grantee and RUS and any associated documents pertaining to the loan/grant.

Middle Mile project means a broadband infrastructure project that does not predominantly provide broadband service to end users or to end-user devices, and may include interoffice transport, backhaul, Internet connectivity, or special access.

Pre-application expense means any reasonable expense incurred after the release of this NOFA to prepare an application, including engineering costs and accountant/consultant fees.

Proposed funded service area means the area (either in all or part of an existing service area or a new service area) where the applicant is requesting BIP or BTOP funds to provide broadband service pursuant to this NOFA.

Public computer center means a place, including but not limited to community colleges, libraries, schools, youth centers, employment service centers, Native American chapter houses, community centers, senior centers, assistive technology centers for people with disabilities, community health centers, and Neighborhood Network Centers in public housing developments, that provide broadband access to the general public or a specific vulnerable population, such as low-income, unemployed, aged, children, minorities and people with disabilities.

RE Act means the “Rural Electrification Act of 1936,” as amended (7 U.S.C. ยง 901 et seq.).

Recovery Act means the American Recovery and Reinvestment Act of 2009, Pub. L. No.
453 111-5, 123 Stat. 115 (2009).

Remote area means an unserved, rural area 50 miles from the limits of a non-rural area.

Rural area means any area, as confirmed by the latest decennial census of the Bureau of the Census, which is not located within: 1. a city, town, or incorporated area that has a population of greater than 20,000 inhabitants; or 2. an urbanized area contiguous and adjacent toa city or town that has a population of greater than 50,000 inhabitants. For purposes of the definition of rural area, an urbanized area means a densely populated territory as defined in the latest decennial census of the U.S. Census Bureau.

Security document means any mortgage, deed of trust, security agreement, financing statement, or other document that RUS determines is necessary to perfect its interest in the security for a loan or loan/grant.

Service area means the entire area within which a service provider either offers or intends to offer broadband service and may include the proposed funded service area.

State means, for purposes of BTOP, a state or political subdivision thereof, the District of Columbia, or a territory or possession of the United States.

TIER means times interest earned ratio. TIER is the ratio of a BIP applicant’s net income (after taxes) plus (adding back) interest expense, all divided by interest expense (existing and any new interest expense including the interest expense associated with the proposed loan); all financial terms are defined by GAAP.

Underserved area means a proposed funded service area, composed of one or more contiguous census blocks27 meeting certain criteria that measure the availability of broadband service and the level of advertised broadband speeds. These criteria conform to the two distinct components of the Broadband Infrastructure category of eligible projects—Last Mile and Middle Mile. Specifically, a proposed funded service area may qualify as underserved for last mile projects if at least one of the following factors is met, though the presumption will be that more than one factor is present: 1. no more than 50 percent of the households in the proposed funded service area have access to facilities-based, terrestrial broadband service at greater than the minimum broadband transmission speed (set forth in the definition of broadband above); 2. no fixed or mobile broadband service provider advertises broadband transmission speeds of at least three megabits per second (“mbps”) downstream in the proposed funded service area; or 3. the rate of broadband subscribership for the proposed funded service area is 40 percent of households or less. A proposed funded service area may qualify as underserved for Middle Mile projects if one interconnection point terminates in a proposed funded service area that qualifies as unserved or underserved for Last Mile projects.

Unserved area means a proposed funded service area, composed of one or more contiguous census blocks, where at least 90 percent of households in the proposed funded service area lack access to facilities-based, terrestrial broadband service, either fixed or mobile, at the minimum broadband transmission speed (set forth in the definition of broadband above). A household has access to broadband service if the household can readily subscribe to that service upon request.