A representative for the National Telecommunications and Information Agency, which awarded the federal stimulus money to IT&E, told the news agency Connect Planet that the projects the grant will help fund are necessary.
“These grants were carefully designed to invest money where it’s truly needed,” Connect Planet quoted an unidentified NTIA representative. “The fact that an existing provider offers some level of broadband service somewhere with the project’s proposed service area does not disqualify the project from funding.”
GTA executive vice president for external and legal affairs Dan Tydingco said the awarding of the grant to IT&E could be an inappropriate use of public funds since Guam already has an above average broadband infrastructure.
He said the projects funded by the new grant will only result in IT&E overbuilding on existing infrastructure, which will unlevel the playing field for Guam’s four telecommunications providers.
However, IT&E officials have maintained that the company fairly applied for its share of the nearly $7 billion in stimulus grant money that is also available to other local telecommunications companies.
According to NTIA officials, the IT&E project will help directly connect more than 400 community anchor institutions including schools, healthcare facilities and libraries.
The NTIA said the goal of projects funded by the agency’s grants is to ensure that funding goes to projects that will enhance broadband service to bridge the technological divide.
“Our review concluded that neither of the service providers commenting on IT&E’s application provided sufficient information to overcome the applicant’s assertions that the proposed project was eligible for funding,” the NTIA said.
According to NTIA, IT&E has submitted a new application requesting for an additional $90 million in stimulus funding to enhance broadband capabilities in other underserved areas in Guam and the CNMI.
