The Challenges to Broadband Deployment Financing

One identified obstacle to broadband access in rural communities is the lack of available private financing for network deployment, whether through capital investment, debt financing, or other financial support. While several federal programs support broadband deployment in unserved and underserved areas, challenges in obtaining private debt or equity support that prevent effective deployment remain. Even with government support, many enterprises may be unable to achieve a profitable operating model, and the business case for potential deployment projects in many rural areas may be inadequate to merit sufficient private sector support. In an effort to address these challenges, the Federal Communications Commission seeks comment on the potential private sector and government funding vehicles for effective financing of broadband deployment projects in rural and high cost areas. While many of these vehicles may be outside the FCC's scope and jurisdiction, the Commission is considering a range of potential vehicles in order to address the Congressional call for "an analysis of the most effective and efficient mechanism for ensuring broadband access" to all Americans.

The FCC asks:

1) What existing federal government institutions, program mechanisms, and sources of funding could be employed to create greater incentives for privately financed rural broadband deployment?

2) What new financing methods should be employed to increase effectiveness and encourage entrepreneurship in the private sector for supporting rural broadband deployment?

Comments are due January 8, 2010.