The recently released ARRA NTIA-RUS BTOP-BIP NOFA* (hereinafter simply NOFA) contained two important elements that offer encouraging signs for broadband service providers focused on delivering new, value-added services to their subscribers. To the extent this document expresses the evolving regulatory views of various government organs, these encouraging signs apply even to those operators not planning on dipping into the public trough.
The first is embodied in the term “middle mile.” Just the presence of the term, which is somewhat new in broadband regulatory circles, reveals a deeper understanding into the nature of broadband networks. Most of those dealing with broadband technology have long understood that the “speed” (it’s really capacity, but we’ll stick with the term speed to simplify things) of a broadband service is less a function of the DSL or FTTP access facility than it is of the broadband aggregation network and, for many IOCs, the capacity of their connection to the nearest internet peering point. The NOFA correctly understands that delivering faster broadband is not achievable unless the upstream portion of the infrastructure (the “middle mile”) receives some of the investment. This is true for exactly the same reason that better freeway on ramps will not, by themselves, yield a superior commuting experience.
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