MMTC Wants Small Business Broadband Stimulus Fund

Letter says 1% weighting for SDBs is insufficient

By John Eggerton -- Broadcasting & Cable, 11/17/2009 10:01:56 AM

The Minority Media & Telecommunications Council wants some of the broadband stimulus money in the second round of bidding to be set aside for minorities and small businesses.

The National Telecommunications & Information Administration and the USDA's Rural Telecommunication Service (RUS) have begun collecting comments on how they can improve the second round after catching flak over how they are administering the first.

In a letter to RUS administrator Jonathan Adelstein, MMTC said that the 1% weighting for small disadvantaged businesses (SDBs) in the first found was insufficient.

"RUS should reserve a portion of the round two funds solely for SDB use," said MMTC. If there is any of that set-aside left over, it should to bidders who can demonstrate significant SDB participation, the council said.