Tuesday, June 30, 2009

Broadband: Expertise of Political Connections?

The Massachusetts Technology Cooperative issued an RFP for a consultant to assist the Commonwealth on its development of a broadband implementation. Like so many other states this has a short fuse, stating the schedule as:

  1. June 29, 2009 RFP Issued.
  2. July 8, 2009 Responses due by 3:00 p.m.
  3. July 10, 2009 Contractor Selections.
  4. July 15, 2009 Deadline for Execution of Master Agreement

Imagine getting a seasoned and competent group in nine days with July 4th in the middle! I guess you get what you plan for. They are seeking:

"Successful proposals will demonstrate that the Respondents are able to achieve the following high-level objectives:


• In consultation with the MBI, identify a thorough list of potential industry partners that have
relevant assets, capabilities, and interest in developing or expanding broadband infrastructure in western Massachusetts. Examples of potential industry partners include both wired and wireless retail broadband service providers, wholesale broadband service providers (including those associated with electric utilities), and broadband construction firms. Relevant assets include but are not limited to an existing customer base, “middle-mile” broadband infrastructure, wireless spectrum licenses, or access to physical infrastructure such as utility poles or communications towers in western Massachusetts. Capabilities include demonstrated operational experience in broadband construction and/or service provision.


• Produce an in-person event (briefing conference) to inform potential industry partners regarding ARRA guidelines (when available) and the MBI’s preliminary plans;


• Identify those organizations that can successfully operate sustainable business models
leveraging public sector investment;


• Determine the interests of qualified organizations with respect to structuring the MBI’s
investments and its partnership arrangements with commercial broadband providers;


• Develop specific recommendations for structuring and negotiating partnerships with qualified commercial broadband providers, and incorporate these recommendations into an eventual request for proposals for commercial provider partners;


• Develop at least two options for sustainable business models for MBI investments and publicprivate partnerships; and


• Produce an interim report with content suitable for incorporation into the MBI’s ARRA competitive grant application by the second week of August 2009..."


They then go on to describe their ideal candidate:

"The successful Respondent must have demonstrated and recent experience in the following:


• Expertise in broadband infrastructure deployment and associated business models, including
open access;


• Public-private partnership models and the general rules surrounding public procurements (e.g. disclosure, non-exclusivity);


• At least three active or recently completed projects of similar size/scale/scope;


• A highly experienced senior staff member or team assigned to this project, who have each
completed three or more projects of similar size/scale/scope."


In our experience, having been the first to obtain USDA RUS financing for New Hampshire, and then having to walk due to the intractable franchise environment, there are few if any capable entities who could do this task as they request. In fact based upon my personal experience there are most likely none. If you were to read our dozens of feasibility reports you would see how complex this issue is. The interesting result is what the Commonwealth comes up with. This is in my opinion a pre-selected deal, and that is a shame. Public Knowledge, a liberal DC think tank, also wrote concerning of projects with such a short fuse. In the PK case their concern was that the time was short to get bidders who gave the right answer, namely the incumbents. One wonders what the agenda is in Massachusetts.

Why the rush, they have been playing with this for years!