The Best Billion We Can Spend On Rural Broadband

[Commentary] Are we stimulating rural broadband deployment to the best of our ability by focusing solely on a big-government, top-down approach to federal and state officials picking winners and losers by writing big checks? Could there be some way to enhance what's already there with a small-government, market-driven strategy that rewards progressive projects, gets money flowing quickly, and maximizes the impact of government dollars? Daily offers a plan: $1 billion in budget authority for fast-track partial loan guarantees for next-generation broadband -- that would allow $25 billion in guarantees to be distributed thereby enabling $50 billion in total investment to be realized. These guarantees would cover 100% of the losses up to 40-60% of the total value of the loan. The size of the guarantees would be based on a sliding scale relative to the overall density of a project. Projects under 10 premises per linear mile of inhabited road could get 60%; projects over 25 premises could get 40%; and in between is the sliding scale. The fast-track approval process would require applicants to have market-ready projects but would approve projects based on a simple checklist that insures they have what they need to take their plans to the private capital markets. Once given a guarantee, applicants would have 120 days to secure financing before the guarantees expire. In this way we rely on the capital markets to vet which projects are financially viable and deserve funding. Any project supported by these guarantees must provide universal, open, and next-generation broadband access. These guaranteed loans can be used to fund all aspects of network deployment and operation. And while the emphasis is on wireline broadband, up to 20% of these loans can go to deploying complementary next-generation wireless access. All communities under 50,000 without a next-generation wireline broadband provider are eligible. All owner/operator models are eligible. All forms of capital can be guaranteed.