Posts Tagged ‘Broadband Stimulus Initiatives’

NTIA Completes Round One Awards With Plenty of Funds Left

April 28, 2010
4/27/10 at 8:19 AM by Joan Engebretson

The National Telecommunications and Information Agency on April 26 announced what it said would be its final awards in Round 1 of the broadband stimulus program. With this announcement, funding for round one of the broadband stimulus program is officially closed.

The nine new grants bring the total value of awards made by the NTIA in Round 1 to $1.2 billion. Considering that the NTIA was charged with awarding a total of $4.7 billion in two funding rounds, that leaves more than half for the second round. Combine that with the fact that there were fewer applicants in Round 2 and it should make an individual applicant’s odds of winning something considerably better in the second round, which had a filing deadline in late March.

Award winners included:

  • One Economy Corporation, $28.5 million for a sustainable broadband adoption program in 31 states
  • DigitalBridge Communications, three separate awards totaling $4.3 million for wireless broadband infrastructure in Idaho
  • The City of Williamstown, Ky., $535,000 for a fiber-to-the-home network
  • Pine Telephone Company, $9.5 million for broadband wireless infrastructure in Oklahoma
  • Critical Hub Networks, $25.8 million for an undersea cable and middle-mile microwave network in Puerto Rico
  • Buggs Island Telephone Cooperative, $19 million for broadband wireless infrastructure in Virginia
  • Public Utility District of Pend Oreille County, $27.2 million for a fiber-to-the-premises network in the state of Washington

The Rural Utilities Service, which has responsibility for awarding an additional $2.5 billion in broadband stimulus funding, issued its final Round 1 awards at the end of March.

The RUS also received fewer applications in Round 2 and has slightly more than half of its total award money still available.

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RUS Receives 776 Applications for Broadband Stimulus Round Two

April 20, 2010
4/19/10 at 12:49 PM by Joan Engebretson

The Rural Utilities Service (RUS) said late last week that it received 776 applications in the second round of broadband stimulus funding requesting nearly $11.2 billion. The RUS was given a total of $2.5 billion to administer in two funding rounds and awarded less than half in the first round.

The total number of applications was down from the 1230-plus the agency received in the first funding round. But that’s not surprising, considering changes in application rules. In the first round applicants were allowed to submit the same application to the RUS and the National Telecommunications and Information Agency (NTIA), which then determined which agency—if either—would grant the award. In the second round, an individual application could go to only one agency.

The NTIA received 867 applications in the second round, down from 1090 in the first round. While all RUS applications are for infrastructure projects, only 355 of the NTIA applications in this round–totaling $8.4 billion–were for infrastructure projects.

In the second round the NTIA is focusing on broadband infrastructure projects that connect community anchor institutions, while the RUS focuses primarily on last mile projects aimed at reaching end users. All NTIA awards are in the form of grants, while the RUS can make awards that involve a combination of a grant and a loan. It would appear the odds of an individual infrastructure project receiving funding from the NTIA in this round are better than the odds of being funded by the RUS, as the NTIA still has approximately $2.35 billion available for infrastructure awards.

Among the largest carriers, only those who previously announced plans to apply in this round have done so. Neither AT&T nor Verizon nor any major cable or wireless company will be found on the applicant list. But as previously announced Qwest, TDS Telecom and Windstream made applications, as did Iowa Telecom.

Many applicants were small incumbent telcos and organizations that apparently were created with the goal of applying for broadband funding. Among all the last mile applications, FTTH appears to be the most popular last mile broadband technology.

NTIA Receives Fewer Applications, $11B in Funding Requests for Round 2

April 9, 2010
4/7/10 at 4:52 PM by Joan Engebretson

The National Telecommunications and Information Agency received less than half the number of applications in the second round of broadband stimulus funding than it did in Round 1.

The total number of applicants in Round 2 was just 867, compared with nearly 1800 in the first round. The biggest drop was in the infrastructure category, for which the NTIA received 355 applications—down from 1090 in the first round.

This was likely a result of new application guidelines, which now prohibit applicants from filing the same project with both the NTIA and the Rural Utilities Service (RUS), the agency that is administering the broadband stimulus program in cooperation with the NTIA. In the first round, applicants for infrastructure funding were allowed to submit the same project to both agencies. Although they were not allowed to receive duplicate funding, the idea was to improve the odds of winning something—and 830 joint applications were made in Round 1.

Despite their reduced numbers, however, infrastructure projects represented the majority of funding requested from the NTIA in the second round—$8.4 billion out of $11 billion total requested. The NTIA has approximately $2.35 billion available for this round for infrastructure applications, with an additional $250 million or more available for non-infrastructure projects, which include sustainable broadband adoption and public computer center projects.

The RUS has not yet announced how many applications it received in the second round. But several carriers — including Qwest, TDS Telecom and Windstream – already have announced that they have applied for RUS funding. An RUS spokesman said the agency expects to release its Round 2 application totals within a few days.

The RUS, which was allotted $2.5 billion to distribute over two rounds, recently said it had completed all awards for Round 1 and has awarded less than half of its total amount to date.

USDA Concludes Broadband Stimulus Round 1 with $22 Million Native American Award

March 31, 2010

USDA Press Release via StimulatingBroadband.com 03/30/2010 Washington – Agriculture Secretary Tom Vilsack today announced the selection of the Reservation Telephone Cooperative infrastructure broadband project to give rural residents of the Fort Berthold Indian Reservation and the surrounding area access to improved economic and educational opportunities. The service area includes parts of Montana and North Dakota.

Chairman Marcus Levings, of the Three Affiliated Tribes of the
Fort Berthold Reservation, ND, speaks to President Obama during
the Native American Summit of 11/05/2009 held at Dept. of the
Interior (Photo: Doug Mills, New York Times)

 

Today’s announcement concludes the U.S. Department of Agriculture’s first round of broadband funding announcements through the American Recovery and Reinvestment Act (Recovery Act). Applications filed under the second and final round are under review and will be announced before the end of the 2010 fiscal year.

“The Recovery Act broadband projects announced by USDA will open up educational, job and business opportunities to hundreds of thousands of Americans living in rural areas,” said Vilsack. “As President Obama said earlier this month, ‘America today is on the verge of a broadband-driven Internet era that will unleash innovation, create new jobs and industries, provide consumers with new powerful sources of information, enhance American safety and security, and connect communities in ways that strengthen our democracy.’ I am pleased that USDA, with funds provided through the Recovery Act, is leading this effort in rural parts of our country.”

Today’s announcement provides a $10.95 million loan and a $10.95 million grant to the Reservation Telephone Cooperative to provide service in the remote and rural areas in and around the Fort Berthold Indian Reservation. The project will bring broadband service to homes, businesses, schools and libraries. In addition, service will be provided to tribal government facilities which provide tribal child support, education assistance, employment assistance, health care and public safety services on the reservation. The area has experienced poverty rates as high as 28 percent and a 40 percent unemployment rate.

To date, $1.067 billion has been invested by USDA through the Recovery Act for 68 broadband projects. Together, the projects will make high speed Internet available to an estimated 529,000 households and 96,000 rural business and public facilities across 31 states, one territory and 17 tribal lands and predominantly Alaska Native regions. Many of the areas to be served are extremely remote, sparsely populated and in some cases not connected by roads. Secretary Vilsack and other cabinet officials visited some of the communities that will receive broadband Internet access during a “Rural Tour” last year. Funding is contingent upon the recipient meeting the terms of the loan, grant or loan/grant agreement.

President Obama signed The American Recovery and Reinvestment Act of 2009 into law on Feb. 17, 2009. It is designed to jumpstart the nation’s economy, create or save millions of jobs, and help to bridge the digital divide necessary to addressing long-neglected challenges so our country can thrive in the 21st century. The Act includes measures to modernize our nation’s infrastructure, enhance energy independence, expand educational opportunities, preserve and improve affordable health care, provide tax relief, and protect those in greatest need.

Agriculture Secretary Vilsack Announces Rural Broadband Projects to Bring Economic Opportunity to Communities in Eight States

March 24, 2010

WASHINGTON, March 23, 2010 – Agriculture Secretary Tom Vilsack today announced the selection of broadband infrastructure projects to give rural residents in 8 states access to improved economic and educational opportunities. Funding for the projects is being provided through the American Recovery and Reinvestment Act.

            “The broadband projects announced today will give rural Americans access to the tools they need to attract new businesses, educational opportunities and jobs,” Vilsack said. “The Obama Administration understands that bringing broadband to rural America provides a gateway for businesses and key anchor institutions – such as libraries, schools, public buildings and community centers to provide services to thousands of Americans.  These projects will create jobs building these networks, and the completed systems will provide a platform for rural economic growth for years to come.”

In all, $150 million will be invested in 12 projects through funding made available by Congress in the American Recovery and Reinvestment Act.  An additional $68.2 million in private investment will be provided in matching funds, bringing the total funds invested to $218.2 million. To date, $1.05 billion has been provided to construct 67 broadband projects in 30 states and one territory.

For example, in the Sonoran Desert of Arizona, the Tohono O’odham Utility Authority (TOUA) has been selected to receive a $3.6 million loan and a $3.6 million grant to design, engineer and construct a digital network to replace dial-up service.  This project will provide services throughout the Tohono O’odham Reservation using Fiber-to-the-Premises (FTTP) and fixed wireless broadband. 

Also, in the rural towns of Madison and Lamont, Kan., Madison Telephone, LLC (MTC) was selected to receive a $3.5 million loan and a $3.5 million grant to design, engineer and construct an FTTP network. This project will improve the existing copper-based network that currently limits average customer service speeds. MTC will upgrade this network to FTTP facilities and technologies, thereby eliminating this last mile limitation.

Funding is contingent upon the recipient meeting the terms of the loan, grant or loan/grant agreement. A complete list of recent Recovery Act broadband award recipients by state is below:

Alaska

  • Copper Valley Wireless, Inc.: The Cordova, Alaska, Microwave Project; $1,747,796 loan and $1,747,795 grant. The funding will extend middle-mile connectivity from Naked Island to Cordova.

 

Arizona

  • Tohono O’odham Utility Authority: The Fiber Route – Middle Mile Project; $3,565,900 loan and $3,565,900 grant. The funding will enable high-speed DSL services throughout the reservation with Fiber-to-the-Premises and fixed wireless broadband in certain areas. 

 

Illinois

  • Norlight Telecommunications, Inc.: The Rural High-Speed Ethernet Network – Southern Illinois Project; $14,230,375 loan, $8,538,224 grant and  $5,692,151 of private investment. The funding will provide more than 1,600 miles of middle-mile fiber-optic network throughout 24 southern counties to deliver high-speed Ethernet connectivity.

 

Kansas

  • South Central Telephone Association, Inc.: The Lake City & Sun City Rural Fiber-to-the-House (FTTH) Project; $871,200 grant, and $3,550,800 of private investment. The funding will provide FTTH broadband service to all unserved establishments in the telephone exchanges of Lake and Sun City.

 

  • Madison Telephone, LLC: The Madison-Lamont Fiber-to-the-Premises (FTTP) Project; $3,519,750 loan, $3,519,750 grant and $763,634 of private investment. The funding will provide FTTP last-mile broadband service to exchange areas, including the Kansas telephone exchanges of Madison and Lamont.

 

  • J.B.N. Telephone Company, Inc.: The West Cluster Plus Barnes Fiber-to-the-Premises (FTTP) Project; $5,489,250 loan, $5,489,250 grant, and $3,697,619 of private investment. The funding will provide FTTP broadband service throughout seven western exchanges (West Cluster) and the Barnes exchange (Barnes).

 

Minnesota

  • Northeast Service Cooperative: The Northeast Minnesota Middle Mile Project; $21,749,110 loan and $21,749,110 grant. The funding will provide middle-mile, dark fiber, wavelength services to private-sector providers in rural areas of northeast Minnesota.
  • ·
  • Minnesota Valley Television Improvement Corporation: The Minnesota Wireless Expansion Project; $562,776 loan and $562,776 grant, and $281,388 of private investment. The funding will provide a two-way broadband internet network to unserved and underserved areas of west central and south central Minnesota, providing 34 additional wireless (WiMAX) access points.

 

North Dakota

  • Dakota Central Telecom 1 (DCT1): The Dakota Central Telecom l Project; $2,252,250 grant, and $2,499,597 of private investment. The funding will provide Fiber-to-the-Premises (FTTP) broadband services to households, businesses and key community organizations in portions of the Streeter and Gackle exchanges that are currently unserved.

 

Oklahoma

  • Pioneer Long Distance, Inc.: The Western Oklahoma Wireless (WOW) Project; $1,819,349 loan and $1,783,322 grant. The funding will provide wireless broadband service to unserved and underserved rural areas in western Oklahoma.

 

  • Panhandle Telephone Cooperative, Inc.: The Western Oklahoma Broadband Infrastructure Development Project; $3,366,188 loan, $10,098,562 grant, and $23,297,597 of private investment. The funding will provide a broadband infrastructure to rural areas within the western Oklahoma panhandle area.

 

Texas

  • Wes-Tex Telephone Cooperative, Inc.: The Western Texas Broadband Infrastructure Development Project; $16,891,875 loan, $16,891,875 grant and $28,417,425 of private investment. The funding will provide a broadband infrastructure to increase Internet availability and access speeds in rural areas of western Texas.

 

            President Obama signed The American Recovery and Reinvestment Act of 2009 into law on Feb. 17, 2009.  It is designed to jumpstart the nation’s economy, create or save millions of jobs, and put a down payment on addressing long-neglected challenges so our country can thrive in the 21st century.  The Act includes measures to modernize our nation’s infrastructure, enhance energy independence, expand educational opportunities, preserve and improve affordable health care, provide tax relief, and protect those in greatest need.

            More information about USDA’s Recovery Act efforts is available at www.usda.gov/recovery . More information about the Federal government’s efforts on the Recovery Act is available at www.recovery.gov .

AGRICULTURE SECRETARY VILSACK ANNOUNCES RURAL BROADBAND PROJECTS TO BRING ECONOMIC OPPORTUNITY TO COMMUNITIES IN NINE STATES

February 22, 2010

WASHINGTON, February 17, 2010 – Agriculture Secretary Tom Vilsack today announced the selection of eleven Broadband Infrastructure projects to enable rural residents in nine states to have access to improved economic and educational opportunities. Funding for the projects is being provided through the American Recovery and Reinvestment Act, which was signed into law by President Obama a year ago today. Additionally, USDA and The Department of Commerce’s National Telecommunications and Information Administration (NTIA) have announced that a second filing window for broadband applications opened this week.

Funding of individual recipients is contingent upon their meeting the terms of the loan, grant or loan/grant agreement. Below is a complete list of recent Recovery Act Broadband award recipients by state:

Indiana

  • Smithville Telephone Company, Inc.: $37,729,143 loan. The funding will provide 3,815 households, 209 businesses, and 12 community anchor institutions with access to broadband service.

Iowa

  • Southeast Iowa Rural Wireless Broadband: $3,836,926 loan. The funding will provide Internet services to 80 rural communities using proven wireless technology.

Kentucky

  • Mountain Rural Telephone Cooperative Corporation (MRTCC) ILEC Broadband: $39,843,535 loan and $38,281,044 grant. The funding will provide fiber to Morgan, Menifee, Wolfe, and Elliott counties that will result in 20 Mbps bandwidth to end users.

Louisiana

  • Allen’s Cable – Fiber-to-the-Premises (FTTP) Broadband Network Extension: $3,584,680 loan and $3,513,697 grant. The funding will extend fiber into rural areas of three South Louisiana Parishes.
  • LBH, LLC, – Rural Broadband Powered by Fiber: $16,693,439 loan and $16,691,939 grant. The funding will expand existing broadband into rural areas around Moss Bluff, Oakdale, and Vinton.

Minnesota

  • Southwest Minnesota Broadband Group (SWMBG): $6,350,000 loan and $6,350,250 grant. The funding will provide service to eight rural communities throughout Southwest Minnesota.

Missouri

  • Unionville, Missouri FTTP Project: $5,140,458 loan and $5,140,458 grant. The funding will provide broadband services to households, businesses, and key community organizations that are currently underserved in the Unionville area.

New Mexico

  • Western New Mexico Telephone Company, Broadband Infrastructure Project: $11,516,679 grant. The funding will provide last mile broadband services to remote and unserved locations and critical community facilities throughout Western New Mexico.
  • Baca Valley Telephone Company, Inc.: $1,651,000 loan and $1,586,000 grant. The funding will expand fiber optics to Digital Subscriber Line (DSL) nodes in rural Northeastern New Mexico, replacing outdated deteriorating copper wire and low bandwidth microwave transport systems in some areas, while providing new connectivity in others, and enabling advanced, high-speed DSL service throughout the area.

Oregon

  • Sandy Broadband Infrastructure Project: $374,548 loan and $374,537 grant. The funding will provide broadband service to the underserved rural area of Sandy by improving and expanding wireless Internet service.

Texas

  • Southern Texas Broadband Infrastructure Development and Adoption Project: $40,093,153 loan and $38,520,868 grant. The funding will develop a broadband infrastructure in eleven unserved and underserved rural communities of the South Texas Plains.

To read the full article, go to: http://www.usda.gov/wps/portal/%21ut/p/_s.7_0_A/7_0_1OB?contentidonly=true&contentid=2010/02/0068.xml

Streamlined Broadband Grant Process Promised

November 16, 2009

By AMY SCHATZ
WASHINGTONThe Obama administration said Tuesday it will streamline the application process for $7.2 billion in broadband stimulus grants in response to criticism from applicants and lawmakers that the program isn’t getting money out quickly enough.

Officials at the Commerce and Agriculture Departments outlined plans to consolidate into a single round a grant process originally projected to go for two more rounds. The first round of grants is scheduled to be made in December. The departments asked for comments on how the program could be changed to make it easier for companies to apply.

“This will get the funds out the door faster to stimulate the economy and create jobs,” said Jonathan Adelstein, the Agriculture Department official overseeing the program in a statement. The Agriculture Department oversees a program to build broadband lines in rural areas and will distribute loans as part of the stimulus program.

Administration officials said they’re looking at whether they should devote more of the roughly $3 billion that will be handed out in the second round to high-volume Internet lines in rural areas that could be shared by private companies, libraries and others instead of “last-mile” projects that would be used by a single company to offer broadband service to the home.

The moves come amid broader concern in Congress and the administration about unemployment, which hit 10.2% in October. Republicans have criticized the administration’s $787 billion stimulus program, saying it has moved too slowly and generated too few jobs.

The largest U.S. Internet providers, including Verizon Communications Inc., AT&T Inc. and Comcast Corp., opted against applying for the broadband stimulus funds. All of the companies voiced reservations about some of the conditions that grant recipients would face, namely provisions that would require the providers to abide by open Internet, or net neutrality, rules that might hinder some future efforts to offer pricier Internet services.

Would-be applicants for the broadband grants have roughly two weeks to make suggestions for how grant requirements might be changed, administration officials said. In particular, the agencies want to make it easier for more suburban and semi-rural areas to qualify for broadband stimulus grants or loans.

“The things they’re asking about capture the most common things that people have complained about,” said Craig Settles, founder of Successful.com, a broadband business consulting firm. “There appears to be logic and some attempt to get to consistency and making life easier for the applicant.”

Several members of Congress, including Rep. Rick Boucher (D., VA) who heads the House Energy & Commerce Committee’s Internet subcommittee, have complained that the rules were originally written so that some towns without fast Internet service inside their districts didn’t qualify.

“I believe that to be fair to applicants, we need to find a way to simplify the process going forward,” said Sen. Jay Rockefeller, (D-WV), chairman of the Senate Commerce Committee, at a recent oversight hearing on the program.

Obama administration officials spent much of the summer crafting rules for the grant program and holding workshops across the country designed to answer applicants’ questions about filling out the voluminous forms.

Those meetings did little to answer questions raised by applicants who were required to provide highly technical information about broadband availability in their areas.

The government ultimately received about 2,200 applications for the first round of broadband stimulus funding asking for about $28 billion in funds, far more than the $4 billion that was available. Grants were originally supposed to be awarded this month, but administration officials recently said they needed more time to sift through the applications and would begin awarding money in December.

How Turnkey Can Open Community Fiber Become?

October 21, 2009

Oct 12, 2009 1:17 PM, By Ed Gubbins

The open community fiber network is transforming from an experimental ad-hoc endeavor to a more commercialized market, thanks in part to the promise of broadband stimulus funds.

Across the country, those in need of broadband have launched grassroots public/private partnerships for creating fast, open fiber networks that link municipalities, hospitals, schools and other key community members, leasing excess capacity to encourage private providers to deploy broadband where it wasn’t cost-effective before. But whereas those efforts have previously been trials by fire, they are now imagined on a much more massive scale.

 The Bill and Melinda Gates Foundation has done some back-of-the-envelope math on applying community fiber across the entire underserved U.S., figuring a total cost between $5 billion and $10 billion to link key tenants such as hospitals, libraries, schools and colleges.

The FCC, which is still formulating its national broadband strategy, has taken notice of those numbers, asking for public feedback on the Gates Foundation estimates.

Meanwhile, the private sector is gaining speed in its pursuit of this market. Alcatel-Lucent is formalizing its approach, recently announcing a “turnkey Open Community Broadband” offering worldwide that combines its own fiber access networks with technologies from an ecosystem of partners.

To what extent can this model be mass-produced? There are bound to be unique needs and characteristics in different communities, but they may be most similar where it matters most for this model: in the need for big bandwidth among key community players. The unique qualities of each market underscore the value of network integrators leading a team of suppliers, such as Alcatel-Lucent. But carriers would be wise to go after this space more aggressively, too.

E-mail Ed Gubbins at ed.gubbins@penton.com.

Stimulus Program Generates 2,200 Applications, Requesting $28 Billion

September 1, 2009

by Bernie Arnason

The NTIA and RUS announced the first round of the broadband stimulus program generated 2,200 applications, requesting $28 billion in funding. All 50 states and territories, as well as the District of Columbia were represented. Considering the first round only makes a little over $4 billion available, some applicants are going to come up short.

Given the flood of applications, it’s no wonder the NTIA is renewing its call for volunteer reviewers. According to a government press release, applications came in from a diverse range of parties including  state,  local, and tribal governments; nonprofits; industry; anchor institutions, such as libraries, universities, community colleges, and hospitals; public safety organizations; and other entities in rural, suburban, and urban areas.

NTIA and RUS provided the following breakdown of applicant funding requests:

  • Infrastructure – More than 260 applications were filed solely with NTIA’s Broadband Technology Opportunities Program (BTOP), requesting over $5.4 billion in grants to fund broadband infrastructure projects in unserved and underserved areas. More than 400 applications were filed solely with RUS’s Broadband Initiatives Program (BIP), requesting nearly $5 billion in grants and loans for broadband infrastructure projects in rural areas. More than 830 applications were filed with both NTIA’s BTOP and RUS’s BIP, requesting nearly $12.8 billion in infrastructure funding. (Applicants for infrastructure projects in rural areas must apply to BIP but were given the opportunity to jointly apply to BTOP in case RUS declines to fund their application.)
  • Sustainable Broadband Adoption – More than 320 applications were filed with NTIA requesting nearly $2.5 billion in grants from BTOP for projects that promote sustainable demand for broadband services, including projects to provide broadband education, awareness, training, access, equipment or support, particularly among vulnerable population groups where broadband technology has traditionally been underutilized. (The Recovery Act directs NTIA to make at least $250 million available for programs that encourage sustainable adoption of broadband services, of which up to $150 million is allocated in this first round of grants.)
  • Public Computer Centers – More than 360 applications were filed with NTIA requesting more than $1.9 billion in grants from BTOP for public computer center projects, which will expand access to broadband service and enhance broadband capacity at public libraries, community colleges, and other institutions that provide the benefits of broadband to the general public or specific vulnerable populations. (The Recovery Act directs NTIA to make at least $200 million available for expanding public computer center capacity, of which up to $50 million is allocated in this first round of grants.)

Now comes the fun part – selecting the winning applications. NTIA and RUS say a searchable database containing summaries of all received applications will be available in the coming weeks. Winning applicants are supposed to be notified no later than early November, after going through a two stage selection process.

http://www.telecompetitor.com/stimulus-program-generates-2200-applications-requesting-28-billion/

KGP Logistics Working to Ensure Availability of Products Related to Broadband Stimulus Spending

August 6, 2009

Company is Developing New Stocking Strategies with Customers and Suppliers

When applications for the $7.2 billion Broadband Stimulus package are approved, recipients will need to have resources ready to be able to complete their projects within 24 months. Stocking the right products at the right levels will be critical, and KGP Logistics is taking a proactive stance to ensure availability to customers.

In anticipation of these upcoming announcements, KGP Logistics is collaborating with both suppliers and customers to identify products that will be impacted by Broadband Stimulus spending.

“We are working with our customers to identify core products and developing joint inventory stocking strategies that will provide them with an advantage, should a supply shortage occur,” said Shawn Reckrodt, director, Materials Management, KGP Logistics.

One way KGP Logistics is dealing with uncertain or hard to predict demand patterns is through the use of blanket orders for suppliers and customers.  Blanket orders act as an additional layer of supply, above standard stocking levels, and provide early visibility to suppliers to help them plan raw material, production and manufacturing capacity requirements.

“When blanket orders are scheduled several months into the future, we can usually prevent lengthy supplier lead times, which often occur when demand increases sharply,” said Reckrodt.

Customer blanket orders will be used for both common products utilized across multiple applications and unique products that are often custom-manufactured.  “The key is establishing good release dates so KGP Logistics knows what product – and how much of it to have in stock – so we can monitor supplier acknowledge dates and ensure the product will be available when needed,” said Reckrodt.

KGP Logistics is one of the country’s largest single-source providers of equipment and integrated solutions to the telecommunications industry, including a diverse customer base, a broad portfolio of strategic manufacturer relationships and a national logistics network.

KGP Logistics’ distribution network is comprised of eight Distribution Centers located strategically across the United States, complimented with two Cross Docks and ten Integration Centers dedicated to providing fiber and copper factory terminated cable, custom assemblies, Assemble, Wire and Test (AWT) services, along with complete Engineer, Furnish and Install (EF&I) services. Recognized for its leadership in supply-chain management and value-added solutions, KGP is committed to providing its customers with products and services at the lowest total cost.

Click here to read the white paper on KGP Logistics’ stocking strategy.
For more information on the Broadband Stimulus Package, visit the KGP Logistics Website and blog at kgplogistics.com.