Summary
1. The big gripe, particularly by the access suppliers, is that there has been attractive projects that are just waiting in line for free money. 2. Certainly, a key requirement for the stimulus money is that it cannot be funded by any other source. 3. Telcos have been waiting to start until everything shakes out on the cash distributions.
Analysis
These stalls have resulted in negative impact on manufacturers. Of course, the longer the service providers have waited, the greater the chance for a depressing effect on the telecom market. Delays with government agencies are inevitable and dates given out for the issuance of funds cannot be guaranteed. The bureaucratic requirements in place will definitely prolong the whole process. For example, breaking down the applications into two steps is unnecessary and highly redundant. Evaluation and due diligence can be done at the same time.
For more information on the broadband stimulus package, please see the July 2009 issue in our Independent Telco Tactics Monthly, “Government Stimulus Impact on Telecom
Infrastructure at IOCs.” The report can be purchased directly from GLG.
