With Round 1 of funding coming to a close on August 20, 2009 a lot of conversations are going to be happening regarding the rules and procedures for the second round of funding.  In fact, many of these conversations have already started which is great because it will allow for an increased amount of time to weigh the pros and cons of any given suggestion. 
 
What I am interested in about, from the teams that were responsible for submitting/creating applications in Round 1, is what served as a barrier in the rules that limited your application and what was in the rules that really needs to stay put in Round 2.
 
For instance, I really feel that the interconnection and nondiscrimination clause is a good item to have in place.  I understand the point of view from some of the larger providers that this "open network" creates a situation where they do not want to apply for these funds because of the associated requirements accepting the funds would place on their business.  However, these companies invest in the neighborhood of 7-10 Billion dollars a year across the nation so with only $4.7 Billion available through BTOP was this money ever intended for them or was it intended for the mid to small-tier companies whose technology plan is more fluid and flexible--not to say the large providers are not flexible, but they plan in 3-5 year increments at least?  Regardless of the answer to that question I think this is a requirement that needs to stay firmly in place.
 
An area that needs to be adjusted is the 20 percent matching requirement as it relates to states and local governments.  I am thankful that there is a waiver process in place and if the matching requirement stays put I also believe that the waiver process should stay in place, but become more formalized.  Back on point, governments of all sizes are seeing a decline in their revenue streams and this requirement (with the unknown of being granted the waiver) has restricted their creativity in responding and ability to respond.  If this requirement was lifted it would have a positive affect on applications from these two groups.  If it is not lifted, and I can understand why it may not be, then it should become more formalized and a waiver request should be able to be submitted and answered prior to an application being submitted. 
 
In short, keep the interconnection and nondiscrimination requirement and revise the 20 percent matching requirement for states and local governments.
 
Please leave your thoughts on what should stay, go, or be revised as Round 2 is quickly approaching. 
 
John D. Conley
Executive Director
Statewide Internet Portal Authority
State of Colorado