Securing Your Stimulus Funds

Support from Moonblink Can Help The Process Be Successful

The NTIA and RUS have set the rules for applying for funding for the $7.2B that is being made available through the two agencies. The application process is based on a scoring system which requires each applicant to provide detailed information in four categories:

1. Project Purpose
2. Project Benefits
3. Project Viability
4. Project Budget and Sustainability

With the requirements for an accurate budget estimation and complete business case being worth a quarter of the total scoring points, NTIA is looking for a each applicant to include a Third party Budget Review, Business Plan sustainability, Market projections, key assumptions, best use of matching funds and in kind contributions. They want compliant applications satisfying eligibility requirements, ready for due diligence review and subsequent compliance audits. All of this detail must be part of applications for the first round which are due on August 14th, leaving potential applicants with a lot of work to do in the next few weeks.

As the due dates for applications quickly approaches, Moonblink Communications can provide a systematic strategic capability to market and service modeling, business case modeling and analysis, and broadband stimulus funding application drafting.

Moonblink support services fall into three areas:

1) Strategy and expertise in helping wireless operators and their partners complete their BTOP/RUS funding applications.
2) Analytical support for each unserved or underserved market included in funding proposals, either directly or indirectly through affiliates.
3) Business development support to help wireless operators develop public-private partnerships and affiliate programs which may be necessary or advantageous for certain markets where they are submitting applications.

Moonblink can provide direct support in developing the detailed budget and business case analysis that must be part of each ARRA funding package. Using the Business Case Analysis Tool, our team will develop a business case template for broadband market deployments. The complete 10-year business case makes use of a customer-specific operating model of network coverage and capacity, core network and services.

The requirements of the application process require that each application have a detailed budget. By developing a detailed business case, the operator can show the following in the application:

- The exact amount required for investment in the network deployment
- How much additional equity investment is needed
- A detailed model for operational expenses
- The revenue estimates for the business case, and market projections and assumptions back up the data.
- The “but for” analysis showing the business case of the deployment without funding.
- The effect of funding on the business case, and the viability of the post-funded business
- Have a template for subsequent due diligence and compliance review.

Further, the ARRA version of the Business Case Tool implements a special investment module which allows a thorough analysis of the business case for each market accounting for various grant and loan levels. The scoring criteria requires each applicant show that the project supports the “but for” requirement. This means that an applicant must show that without funding the project would not be viable, but with funding the project will be a profitable on-going business. The Business Case Tool is ideal for demonstrating this clearly.

Business Case Results Without Stimulus Funding.

Business Case Results With Stimulus Funding.

In addition to the business case modeling, key success factors in the other scoring categories can be quantified and modeled for each target market, such as broadband service expansion, job creation and economic development.

Moonblink Communications offers assistance in developing public-private partnerships for markets where it may be advantageous or necessary as part of the application process. Our team can help develop the strategy, structure and funding requirements of such public-private agreements, and support wireless operators in their efforts to build agreements with state and municipal agencies. Support for public-private partnerships also gain additional points in the application process. Also, consultation with the states is performed in the subsequent steps as part of the BTOP grant review and approval process.