Open Range Communications of Denver, Colorado recently received a $267 million broadband loan from the USDA’s RUS program for the build out of broadband in 500 rural communities. The loan proceeds were held up until the FCC acted on a request from Open Range’s spectrum partner, Globalstar. Globalstar asked the FCC to allow them to offer Ancillary Terrestrial Component (ATC) services over their existing spectrum holdings. The FCC granted that request, clearing the way for Globalstar and Open Range to offer WiMAX services in those identified rural communities. “We expect our partner [Open Range] to initially deploy infrastructure in more than 500 rural communities with the ability to expand the relationship over the next six years to additional markets covering 50 million people or about 15% of the U.S. population,'' said Jay Monroe, CEO and Chairman of Globalstar in a company statement.

WiMAX continues to empower a variety of telecompetitors in both urban and rural markets. The FCC’s recent approval of the Clearwire-Sprint XOHM venture opens the door to a true national WiMAX provider, with the capability to compete against both wireline and wireless broadband providers. Companies like DigitalBridge and Azulstar are doing the same in smaller and rural markets. Fairpoint also recently announced it intends to use WiMAX in some Northeastern rural markets. In its relatively short life, WiMAX is providing significant competitive fuel for the marketplace.

ASHBURN, Va., Oct. 27 /PRNewswire/ -- DigitalBridge Communications Corp., the largest private provider of WiMAX broadband services in the United States, today announced it has completed raising a total of $16.5 million of senior and subordinated debt along with additional capital from its existing equity investors. These funds provide the company with
significant additional liquidity with which to continue to build the enterprise. Read More ...

WiMAX service provider DigitalBridge Communications (DBC) announced the launch of their Bridgemaxx service in Sioux Falls, SD. Bridgemaxx is DBC’s brand for their WiMAX service, which initially starts out as a wireless DSL type product. DBC also intends to roll out mobile WiMAX services in their markets, already launching it in their Jackson Hole, Wyoming market. DBC has been quietly rolling out WiMAX services in rural markets across the U.S. They have other live markets in Montana, Idaho, Indiana, and Virginia.

Like many technologies before it, including digital switching and IPTV, WiMAX technology’s roots are being laid in rural markets. The first WiMAX deployments are happening in towns like Madison, South Dakota and Rexburg, Idaho, and are being deployed by small independent operators not familiar to most, including DigitalBridge Communications and Sioux Valley Wireless. It’s not surprising. Many new technologies are vetted out in this manner, only to eventually gain mass market attention in large urban areas. IPTV is probably the most recent example. I remember listening to rural telcos like CC Communications of Fallon, Nevada and Chibardun Telephone of Cameron, Wisconsin talking about their pioneering video over VDSL deployments way back in 1997, almost a decade before AT&T began to get all of the attention. This scenario is repeating itself with WiMAX. The important early lessons about WiMAX and its capabilities/limitations will be played out in Madison, not in Washington DC or Baltimore.

These rural markets are also great laboratories for the competitive impact of WiMAX. DigitalBridge and Sioux Valley are deploying in some markets where either DSL and cable modem (or both) are present. It will be interesting to watch how consumers react to this new broadband option. Will the broadband portability and mobility that WiMAX provides trump wireline broadband, or simply augment it? Will consumers abandon wireline broadband in favor of broadband wireless WiMAX in much the same way many consumers are abandoning wireline voice in favor of wireless? In a recent interview, Don Marker, CEO of Sioux Valley Wireless told me, "The service is portable…something that no other existing service can offer. In the long run, it is very likely that our portable/mobile service will displace fixed services just as cellular service has done with fixed telephone service." All interesting and important questions, with huge implications for the entire telecom industry. Implications that are being revealed early on in places like Butte, Montana.