RUS Awards $310 Million in Broadband Stimulus Funds, 8% of Program Now Committed

Broadband stimulus activity is starting to build some momentum. On the heels of last week’s NTIA announcement of broadband stimulus funding, the RUS announced fourteen applicants will receive $310 million in funding. Broadband projects in eleven states will receive funding.

The funding is dominated by last mile projects and heavily emphasizes FTTH technology. “The awards for these broadband projects will support anchor institutions – such as libraries, public buildings and community centers – that are necessary for the viability of rural communities,” said Agriculture Secretary Tom Vilsack.

By our count, approximately $564 million in funding has been awarded by both the BTOP ($200 million) and BIP ($364 million) programs to date. This announced funding represents only about 8% of the total $7.2 billion program. Given all the funds need to be committed by September 2010, roughly 8 months from now, look for a flurry of activity in the coming weeks and months.

The RUS provided the following details for the latest awards (listed by state):

• Alaska
  Southwestern Alaska – United Utilities, $43,982,240 grant and $44,158,522 loan. The funding will provide middle mile connectivity to 65 communities.

• Alabama
  Butler – Butler Telephone Co., Inc., $3,892,920 grant. The funding will provide high speed DSL broadband service to remote, unserved households within its rural service territory. The system is being built so that it can be easily upgraded to accommodate future services.
• California
  San Joaquin, Tranquillity, and Fresno – Audeamus, $2,741,505 grant and $2,741,505 loan. The proposed project is a fiber-based broadband infrastructure for the unserved and underserved communities in this service area. A last-mile project, it will provide access to approximately 1,500 households, local businesses and anchor institutions in the communities.
  
• Iowa
  Meriden and Archer –  C-M-L Telephone Cooperative Association, $1,519,225 grant and $1,519,225 loan, $1,525,315 in matching funds. Funding will provide services via a fiber optic network to rural communities with high speed internet exceeding 20 Mbps.

  Bennett, Delmar, and Lowden – F & B Communications, Inc., $1,609,162 grant and $1,628,588 loan. Funding will provide services via high speed fiber optic network with speeds exceeding 20Mbps. System will allow for expansion at a future date.

  Springbrook – LaMotte Telephone Company, $187,815 grant, and $187,815 loan. The funding will provide services from a 300-foot tower and Wi-Max installation for wireless broadband service in the surrounding area.

• Kansas (1% of the network is to be built in Nebraska)
  Western Kansas – Rural Telephone Service Co., Inc., $49,588,807 grant and $51,612,842 loan. Funding will provide service in an area 99.5 percent unserved/underserved and provide a rural infrastructure required for economic stability, education and healthcare. The company is a cooperative and RUS partner on 32 other projects. It leads a team of seven companies with this shovel-ready project.
• Tennessee (1% of the network is to be built in Kentucky)
  Northern Tennessee – North Central Telephone Cooperative, Inc., $24,715,709 grant and $24,964,000 loan. The funding will provide the necessary infrastructure to provide advanced voice, video, and data services that exceed 20Mbps to remote and rural communities in the service area.
• Louisiana
  Morehouse Parish – Northeast Louisiana Telephone Company, Inc., $4,359,000 grant and $8,124,600 loan. Funding will provide an active Ethernet system with symmetrical speeds of 20 Mbps. The system will be using buried fiber to the premise.
• Missouri
  Ralls County – Ralls County Electric Cooperative, $9,548,908 grant and $9,548,909 loan. Funding for this project will provide a fiber optic network to residential and commercial members and the underserved safety and anchor agencies in the service area. This is a State of Missouri demonstration project and non-proprietary data will be shared.
• North Dakota
  Burleigh County – BEK Communications Cooperative, $1,986,473 grant and $2,016,571 loan; $2,016,572 in leveraged funds. The funding will provide fiber-to-the-premises broadband service to underserved homes and anchor institutions. This will aid business growth and support public safety in rural areas highly dependent on Internet business income.

  Traill County – Halstad Telephone Company, $2,027,600 grant and $2,027,600 loan; $10,000 in leveraged funds. The funding will provide fiber-to-the premises broadband service to unserved homes and businesses in Traill County.

• Oregon
  Marion County – Gervais Telephone Company, $314,430 grant and $314,430 loan. This project extends Gervais Telephone Company’s existing fiber network by building out from the nearest fiber splice point through the funded service area. This project will provide broadband connectivity to residential and business end users, as well as to four anchor institutions.
• Virginia
  Alleghany County – NTELOS Telephone Inc., $8,062,088 grant and $8,062,088 loan. The funds will provide broadband infrastructure to unserved and underserved homes, businesses and critical community institutions in this rural county. A fiber-based project, it will enable work-from-home jobs and foster economic development, and improve health, education and public safety services to the county citizens.