The 2009 Federal Stimulus Bill

A Windfall for 3G and Wi-Fi for Vendors with a Plan

The 2009 American Reinvestment and Recovery Act, also known as the “2009 Stimulus Bill” offers enormous opportunity for both wireless communications equipment vendors and WLAN equipment vendors. Funding for rural broadband alone exceeds $7.2 billion.

This study examines the ARRA funds most appropriate for wireless solutions on a federal department-by-department basis. It discusses the types of partnerships necessary to fill product gaps as well as the opportunities to take advantage of ARRA “green” funding.

What Questions Does This Report Answer?

  • How well are WiMAX vendors likely to do when it comes to receiving ARRA funds?
  • What approaches are competitors taking to obtain ARRA funding?
  • What are the real opportunities and challenges in obtaining smart grid funds?
  • What partnerships should vendors seek to fill product gaps for ARRA funding?
  • What percentage of broadband funds are wireless vendors likely to receive?
  • What priorities are key agencies setting for grant applications?
  • What total available market (TAM) numbers should wireless and Wi-Fi vendors use in estimating their take of ARRA funding?
  • Where are the best opportunities for specific types of wireless products?
  • Why should wireless vendors focus some attention on state construction projects?

Who Needs This Report?

  • Stock analysis firms covering wireless industry vendors
  • Venture capital firms analyzing opportunities for new broadband products such as white space devices
  • Video surveillance equipment vendors
  • Video surveillance software vendors with government focus
  • Wire line switching equipment vendors
  • Wireless equipment vendors
  • Wireless LAN equipment vendors
  • Wireless sensor chipmakers
  • Wireless service providers
  • Wireless trade associations

Table of Contents


Section 1.
Executive Summary
1.1. Report Scope
1.2. Report Methodology
1.3. Broadband Wireless Opportunities
1.4. Wi-Fi Equipment Opportunities
1.5. Video Surveillance Revenue
1.6. Vendor Plans to Gain ARRA Funds
1.7. Key ARRA Issues

Section 2.
The American Recovery and Reinvestment Act
2.1. Report's Scope
2.2. Report Methodology
2.3. The American Recovery and Reinvestment Act
2.4. Goals for the Stimulus Bill
2.4.1. Some Explicit Restrictions
2.4.2. Timeline
2.5. The Department of Homeland Security
2.5.1. Construction & Consolidation ($200 million; $450 million to the General Services Administration)
2.5.2. US Customs and Border Patrol
2.5.3. US ICE
2.6. FEMA
2.6.1. Transit and Rail Security Grants ($150 million)
2.6.2. Port Security Grants ($150 million)
2.7. Department of Agriculture
2.7.1. Distance Learning, Telemedicine, and Broadband Program
2.8. The NTIA
2.8.1. BTOP ($4,700,000,000)
2.9. Department of Commerce
2.9.1. National Institute of Technology and Standards
2.9.2. National Oceanic & Atmospheric Administration
2.10. National Science Foundation
2.10.1. Academic Research Facilities Modernization ($200 million)
2.10.2. Major Research Instrumentation Program ($300 million)
2.11. Department of Energy
2.11.1. Smart Grid and Related Technologies ($4.5 billion)
2.11.2. Infrastructure Improvement ($125 million)
2.12. NASA
2.13. Department of the Interior
2.13.1. US Geological Survey
2.13.2. Surveys, Investigations, and Research ($140 million)
2.14. Department of Health and Human Services
2.14.1. Electronic Records ($19 billion)
2.14.2. Indian Health Services
2.14.3. Health Resources and Services
2.14.4. National Institutes of Health
2.14.5. Office of the National Coordinator for Health Information Technology
2.14.6. Public Health and Social Services Emergency Fund
2.15. Department of Education
2.15.1. State Fiscal Stabilization Fund ($53.6 billion)
2.15.2. School Improvement Grants ($3 billion)
2.15.3. Education Technology State Grants ($650 million)
2.15.4. Institute of Education Sciences
2.15.5. Corporation of National and Community Service
2.15.6. Social Security Administration
2.16. Department of Defense
2.16.1. Facility Infrastructure Upgrades ($3.8 billion)
2.16.2. Military Construction ($2.1 billion)
2.16.3. Medical Facility Modernization ($0.4 billion)
2.17. Department of State
2.17.1. Information Technology Security and Upgrades to Support Mission-Critical Operations ($290 million)
2.18. Department of Transportation
2.18.1. Federal Aviation Administration
2.18.2. Maritime Administration
2.18.3. Department of Justice
2.19. Department of Transportation
2.19.1. National Surface Transportation System ($1.5 billion)
2.19.2. The Federal Highway Administration ($27.5 billion)
2.20. The General Services Administration ($5.5 billion)
2.21. Vendors' Efforts to Benefit from ARRA Funds

Section 3.
Broadband Opportunities and Challenges
3.1. The Purpose of Funding Broadband
3.2. Clarifying the Sources of Funds Available
3.2.1. The BTOP
3.2.2. The RUS
3.3. The Rural Broadband Unserved Population
3.4. How Funds Will Be Used
3.5. Technology Neutrality
3.6. Many Constituencies to Satisfy
3.7. Speculation on How Funds Will Be Distributed
3.8. Candidates for Rural Broadband Funds
3.8.1. Wireless Service Providers
3.8.2. Rural Cellular Service Providers
3.8.3. Cable Operators
3.8.4. Satellite Operators
3.8.5. Major Carriers
3.8.6. ILECs
3.8.7. FTTH Providers
3.8.8. Utility Companies

Section 4.
Recovery Act Technology Issues
4.1. Minimum Bandwidth Requirements
4.2. Mapping Broadband
4.3. Infrastructure Costs
4.4. Timing Issues for New Broadband Technologies
4.5. Manufacturing Capability
4.6. Specialized Wireless Security Equipment
4.7. Other Specialized Wireless Equipment
4.8. "Smart Grids" and "Smart" Sensors Create New Opportunities
4.8.1. Neighborhood Area Networks
4.8.2. Powerline Technologies
4.8.3. Fixed RF Technologies
4.8.4. HAN Architectural Design Choices
4.8.5. ZigBee, HomePlug, and Other Technologies
4.9. Video Surveillance

Section 5.
Wireless Technology ARRA Revenue Forecast
5.1. Methodology
5.2. BTOP Funds Allocated by Technology
5.3. BTOP Revenue by Wireless Technology
5.4. RUS Fund Allocations by Technology
5.5. RUS Funds Allocation Forecast by Wireless Technology
5.6. FEMA Port Security Wi-Fi Infrastructure Revenue Forecast
5.7. FEMA Transit and Rail Wi-Fi Infrastructure Revenue Forecast
5.8. Total Transit and Rail Wi-Fi Funding
5.9. Law Enforcement Tactical Radios
5.10. Department of Education Forecasted ARRA Wi-Fi Equipment Revenue
5.11. Video Surveillance Forecasted ARRA Funding
5.12. Green Buildings, Wireless Technology, and ARRA Funding
5.13. ARRA Smart Grid Wireless Forecasted Revenue
5.14. The Utility Smart Electric Meter Market Forecast
5.15. Smart Meter Technology Forecast
5.16. Smart Meter Cellular Connections
5.17. ARRA Smart Grid Wi-Fi Equipment Forecasted Revenue
5.18. Wi-Fi Equipment ARRA Revenue from Construction & Modernization Projects
5.19. Total ARRA Wireless Communications Revenue Forecast
5.20. Total ARRA Wi-Fi Equipment Funding Forecast

Section 6.
Revenue Opportunities in State-Targeted Funds
6.1. ARRA State-Targeted Funds
6.2. The State Fiscal Stabilization Fund
6.3. State Highway Construction Funds

Section 7.
Vendor and Organization Profiles
7.1. Airspan
7.2. Alvarion
7.3. American Cable Association (http://www.americancable.org)
7.4. Cisco
7.5. CTIA-The Wireless Association (http://www.ctia.org)
7.6. Elster Integrated Solutions
7.7. FTTH Council (http://www.ftthcouncil.org)
7.8. GE Energy
7.9. Genetec
7.10. GridPoint
7.11. Google
7.12. Harris Stratex Networks
7.13. IBM
7.14. Independent Telephone and Telecommunications Alliance (http://www.itta.us)
7.15. Innovative Signal Analysis
7.16. Milestone Systems
7.17. Motorola
7.18. National Cable and Telecommunications Association(http://www.ncta.com)
7.19. Rural Cellular Association (http://www.rca-usa.org)
7.20. Silver Spring Networks
7.21. SmartSynch
7.22. US Telecom Association (http://www.ustelecom.org)
7.23. WiMAX Forum (http://www.wimaxforum.org)
7.24. Wireless Communications Association International (http://www.wcai.com)
7.25. Wireless Internet Service Providers Association(http://www.wispa.org)

Section 8.
For Further Research

Section 9.
Company & Trade Associations List

Section 10.
Acronyms
Scope of Study
Sources and Methodology
Notes





Tables
  • BTOP Fund Allocation by Technology Type, United States, Forecast: 2009 to 2010
  • BTOP Fund Allocation by Wireless Technology, United States, Forecast: 2009 to 2010
  • RUS Fund Allocation by Technology, United States, Forecast: 2009 to 2010
  • RUS Fund Allocation by Wireless Technology, United States, Forecast: 2009 to 2010
  • FEMA Port Security Wi-Fi Infrastructure Revenue, United States, Forecast: 2009 to 2010
  • FEMA Transit & Rail Security Wi-Fi Infrastructure Revenue, United States, Forecast: 2009 to 2010
  • Total ARRA Transit & Rail Security Wi-Fi Infrastructure Revenue, United States, Forecast: 2009 to 2010
  • Tactical Law Enforcement Radios ARRA Wireless Communications Revenue, United States, Forecast: 2009 to 2010
  • Department of Education ARRA Wi-Fi Equipment Revenue, United States, Forecast: 2009 to 2010
  • Video Surveillance ARRA Funding, United States, Forecast: 2009 to 2010
  • Wireless Revenue from Green Buildings Initiatives, United States, Forecast: 2009 to 2010
  • Wireless Revenue from Smart Grid ARRA Funding, United States, Forecast: 2009 to 2010
  • Utility Meter Market by Meter Type with Smart Meter Penetration, North America, Forecast: 2007 to 2014
  • Smart Meter Communication Technology Cumulative Shipments by Technology Type, North America, Forecast: 2007 to 2014
  • Smart Meter Cellular Connections by Air Standard, North America, Forecast: 2007 to 2014
  • Wi-Fi Equipment Revenue from Smart Grid ARRA Funding , United States, Forecast: 2009 to 2010
  • Wi-Fi Equipment Revenue from ARRA Construction & Modernization Facility Funding, United States, Forecast: 2009 to 2010
  • Total ARRA Wireless Communications Funding, United States, Forecast: 2009 to 2010
  • Total ARRA Wi-Fi Equipment Funding, United States, Forecast: 2009 to 2010
  • State Fiscal Stabilization Fund Allocation by State, US Department of Education, Forecast: FY 2009 to FY 2011
  • Department of Transportation Funds to States, United States, Forecast: 2009 to 2010
  • Additional Department of Education ARRA Funding of Interest to Wireless Communications Vendors, United States, Forecast: 2009 to 2010

Charts
  • BTOP Fund Allocation by Technology, United States, Forecast: 2009 to 2010
  • BTOP Fund Allocation by Wireless Technology, United States, Forecast: 2009 to 2010
  • RUS Fund Allocation by Technology, United States, Forecast: 2009 to 2010
  • RUS Fund Allocation by Wireless Technology, United States, Forecast: 2009 to 2010
  • FEMA Port Security Wi-Fi Infrastructure Revenue, United States, Forecast: 2009 to 2010
  • FEMA Transit & Rail Security Wi-Fi Infrastructure Revenue, United States, Forecast: 2009 to 2010
  • Total ARRA Transit & Rail Security Wi-Fi Infrastructure Revenue, United States, Forecast: 2009 to 2010
  • Tactical Law Enforcement Radios ARRA Wireless Communications Revenue, United States, Forecast: 2009 to 2010
  • Department of Education ARRA Wi-Fi Equipment Revenue, United States, Forecast: 2009 to 2010
  • Video Surveillance ARRA Funding, United States, Forecast: 2009 to 2010
  • Wireless Revenue from Green Buildings Initiatives, United States, Forecast: 2009 to 2010
  • Wireless Revenue from Smart Grid ARRA Funding, United States, Forecast: 2009 to 2010
  • Smart Electric Meter Shipments, North America, Forecast: 2007 to 2014
  • Smart Meter Communication Technology Cumulative Shipments by Technology Type, North America, Forecast: 2007 to 2014
  • Smart Meter Cellular Connections by Air Standard, North America, Forecast: 2007 to 2014
  • Wi-Fi Equipment Revenue from Smart Grid ARRA Funding , United States, Forecast: 2009 to 2010
  • Wi-Fi Equipment Revenue from ARRA Construction & Modernization Facility Funding, United States, Forecast: 2009 to 2010
  • Total ARRA Wireless Communications Funding, United States, Forecast: 2009 to 2010
  • Total ARRA Wi-Fi Equipment Funding, United States, Forecast: 2009 to 2010