Networking firms in Silicon Valley see stimulus potential in their customers - Silicon Valley / San Jose Business Journal:

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billion in stimulus money the federal government plans to spend to improve broadband access is viewed asa “wai t and see” situation for Silico n Valley networking companies. As in, whilw waiting for the government’s rules on how and wherr the money canbe used, they are seeing what their customers need for projects backed by the stimulux spending. Giants such as are vying for chunksd ofthe funding, but even the valley’s smalleer “arms dealers” (as one wit put it) are determining how to help customersx apply for the potentially lucrative grantws — because if those customers get grant they will need equipment. Of the the U.S.
Commerce Department’s National Telecommunications and Information Administration willdistributes $4.7 billion to build broadbansd infrastructure in underserved areas, deliver broadband to public safeth agencies and stimulate demand through training and education. The remaining $2.5 billion will be governed by the Rural Utilitiez Service underthe U.S. Department of Agriculture for rural broadband The final rules governing the broadband provisions are expectes to be released in Companies say it could be the end of June beforre the two agencies administering the moneyu will start takinggrant applications. It could be Decembeer before the money is readyto go.
Or the finalizatiob of the rules and the noticse of funds becoming available couldhappen “In the end, this is about creating so the more jobs you’re able to creates with your proposal, the more support you’re likely to said Rich Wonders, executive vice president at Paris-based . “Yoju need to lay out your advocacy plan and stargt gathering support atthe local, stater and federal level.” Cisco is working on aspectas of the stimulus package for governmentf and private-sector customers includinbg broadband deployment and information technology for healthu care.
“The ultimate impactr on Cisco will depend on how thoser customers access and implement programs funded with stimulus spokeswoman Jennifer Greeson JuniperNetworks Inc. is working to get severalk product lines added to the list of vendor equipment approved by the RuralUtilities Service. Public sector marketing manager Don Root said that becausw much of the stimulus funding is aimecat smaller, rural providers, many Juniper customers already have loca expertise in applying for and Juniper is helping as needed. Wonders said it’se hard for Alcatel-Lucent to determine how responses to the governmenr should look because the parametersremainj undefined.
“I won’t pretend we’ve figured it out. The bill is not just lookingb to give consumers access to faster broadband so they candownload YouTube,” Wondera said, “but to connect patientz to doctors and students to and the list goes on and on.” Alcatel’ds IP routing division is based in Mountain and it has the No. 2 market share behind Cisco inIP “edgr routing,” which optimizes routes and load distribution betweeb networks. There’s a notion that even a basicc presence of broadband makes anarea served, but Wonderz said a person doesn’t have to drivew very far from San Jose or San Francisco to find areaws that are underserved.
Alcatel has presented 11 customert workshops and disseminated information to morethan 10,00 customers on broadband stimulu in the past two months, and it is helping customer draft grant applications. When the rules are the company will post them on a Web site aimede atrural broadband, broadband4all.com/alu. Covad Communications the San Jose-based broadband servicde company, is examining two aspects of the stimulus targeting smalland medium-size businessed across the country to upgrade theirf connectivity speeds at lower prices, and looking at underserved arease to offer higher bandwidth at lower prices. But whether Covad will apply for the grantzs remains tobe seen.
“We are activeluy evaluating whether to It comes down to economics because the broadbandstimulus … often involves some matching funds. We’re seeinbg if we can raiser the capital to do our part ofthe investment, and then pay for the operationapl cost,” said Jason Wakefield, Covad’s vice presidentr of governmental and external affairs. “We need to make sure the busines casesupports it.” Like many of his networkinfg cohorts, Tom Gallatin, founder and managing partner of data access switch maker Gigamon LLC, said his company probably won’t apply directly for any stimulus money. But Gigamoj stands to benefit when its customers applygfor grants.
Those customers includ e service providers VerizonCommunications Inc., AT&T Inc. and Sprinyt Nextel Corp. as well as cable companies ComcastCablde Co., Cox Communications Inc. and Chartere Communications Inc. “I compare the stimulus packag to (President Dwight D.) Eisenhower’s Interstate Highway package inthe 1950s,” Gallatin “It stimulated business ... and now we’re doin g the same thing electronically.
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