[House Hearing, 113 Congress]
[From the U.S. Government Publishing Office]
COORDINATING FUTURE INVESTMENTS IN BROADBAND
=======================================================================
HEARING
BEFORE THE
SUBCOMMITTEE ON
LIVESTOCK, RURAL DEVELOPMENT, AND CREDIT
OF THE
COMMITTEE ON AGRICULTURE
HOUSE OF REPRESENTATIVES
ONE HUNDRED THIRTEENTH CONGRESS
SECOND SESSION
__________
JULY 29, 2014
__________
Serial No. 113-19
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Printed for the use of the Committee on Agriculture
agriculture.house.gov
__________
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COMMITTEE ON AGRICULTURE
FRANK D. LUCAS, Oklahoma, Chairman
BOB GOODLATTE, Virginia, COLLIN C. PETERSON, Minnesota,
Vice Chairman Ranking Minority Member
STEVE KING, Iowa MIKE McINTYRE, North Carolina
RANDY NEUGEBAUER, Texas DAVID SCOTT, Georgia
MIKE ROGERS, Alabama JIM COSTA, California
K. MICHAEL CONAWAY, Texas TIMOTHY J. WALZ, Minnesota
GLENN THOMPSON, Pennsylvania KURT SCHRADER, Oregon
BOB GIBBS, Ohio MARCIA L. FUDGE, Ohio
AUSTIN SCOTT, Georgia JAMES P. McGOVERN, Massachusetts
SCOTT R. TIPTON, Colorado SUZAN K. DelBENE, Washington
ERIC A. ``RICK'' CRAWFORD, Arkansas GLORIA NEGRETE McLEOD, California
SCOTT DesJARLAIS, Tennessee FILEMON VELA, Texas
CHRISTOPHER P. GIBSON, New York MICHELLE LUJAN GRISHAM, New Mexico
VICKY HARTZLER, Missouri ANN M. KUSTER, New Hampshire
REID J. RIBBLE, Wisconsin RICHARD M. NOLAN, Minnesota
KRISTI L. NOEM, South Dakota PETE P. GALLEGO, Texas
DAN BENISHEK, Michigan WILLIAM L. ENYART, Illinois
JEFF DENHAM, California JUAN VARGAS, California
STEPHEN LEE FINCHER, Tennessee CHERI BUSTOS, Illinois
DOUG LaMALFA, California SEAN PATRICK MALONEY, New York
RICHARD HUDSON, North Carolina JOE COURTNEY, Connecticut
RODNEY DAVIS, Illinois JOHN GARAMENDI, California
CHRIS COLLINS, New York
TED S. YOHO, Florida
VANCE M. McALLISTER, Louisiana
______
Nicole Scott, Staff Director
Kevin J. Kramp, Chief Counsel
Tamara Hinton, Communications Director
Robert L. Larew, Minority Staff Director
______
Subcommittee on Livestock, Rural Development, and Credit
ERIC A. ``RICK'' CRAWFORD, Arkansas, Chairman
BOB GOODLATTE, Virginia JIM COSTA, California, Ranking
STEVE KING, Iowa Minority Member
RANDY NEUGEBAUER, Texas MIKE McINTYRE, North Carolina
MIKE ROGERS, Alabama DAVID SCOTT, Georgia
K. MICHAEL CONAWAY, Texas FILEMON VELA, Texas
GLENN THOMPSON, Pennsylvania MICHELLE LUJAN GRISHAM, New Mexico
SCOTT DesJARLAIS, Tennessee PETE P. GALLEGO, Texas
CHRISTOPHER P. GIBSON, New York WILLIAM L. ENYART, Illinois
REID J. RIBBLE, Wisconsin CHERI BUSTOS, Illinois
JEFF DENHAM, California KURT SCHRADER, Oregon
RICHARD HUDSON, North Carolina RICHARD M. NOLAN, Minnesota
TED S. YOHO, Florida JOE COURTNEY, Connecticut
(ii)
C O N T E N T S
----------
Page
Costa, Hon. Jim, a Representative in Congress from California,
opening statement.............................................. 3
Crawford, Hon. Eric A. ``Rick'', a Representative in Congress
from Arkansas, opening statement............................... 1
Prepared statement........................................... 2
Witnesses
Padalino, John C., Administrator, Rural Utilities Service, U.S.
Department of Agriculture, Washington, D.C..................... 5
Prepared statement........................................... 7
Supplementary material....................................... 53
Zimmerman, Lang, Vice President, Yelcot Communications, Mountain
Home, AR; on behalf of NTCA--The Rural Broadband Association... 17
Prepared statement........................................... 19
Cohen, David, Vice President, Policy, United States Telecom
Association (USTelecom), Washington, D.C....................... 24
Prepared statement........................................... 26
Hance, Robert L., President and Chief Executive Officer, Midwest
Energy Cooperative, Cassopolis, MI; on behalf of National Rural
Electric Cooperative Association............................... 29
Prepared statement........................................... 30
Guttman-McCabe, Christopher, Executive Vice President, CTIA--The
Wireless Association, Washington, D.C.......................... 39
Prepared statement........................................... 40
COORDINATING FUTURE INVESTMENTS IN BROADBAND
----------
TUESDAY, JULY 29, 2014
House of Representatives,
Subcommittee on Livestock, Rural Development, and Credit,
Committee on Agriculture,
Washington, D.C.
The Subcommittee met, pursuant to call, at 10:05 a.m., in
Room 1300 of the Longworth House Office Building, Hon. Eric A.
``Rick'' Crawford [Chairman of the Subcommittee] presiding.
Members present: Representatives Crawford, Rogers, Conaway,
Thompson, Gibson, Costa, McIntyre, Scott, Vela, Lujan Grisham,
Enyart, Nolan, and Courtney.
Staff present: DaNita Murray, Mike Dunlap, Nicole Scott,
Skylar Sowder, John Konya, Andy Baker, Liz Friedlander, and
Riley Pagett.
OPENING STATEMENT OF HON. ERIC A. ``RICK'' CRAWFORD, A
REPRESENTATIVE IN CONGRESS FROM ARKANSAS
The Chairman. Good morning. This hearing of the
Subcommittee of Livestock, Rural Development, and Credit to
coordinate future investments in broadband, will come to order.
Good morning, and welcome to this hearing to review
broadband deployment in rural America. In this modern age, it
is surprising to know that there are some parts of the country
where the live video feed from this hearing is not viewable by
our rural constituents due to a lack of broadband access. In a
time when commerce, leisure, and a transparent government rely
on robust networks, we still find communities which are not
connected through high-speed broadband. There are many
communities still struggling to recover from a poor economy to
attract new businesses and to connect new, critical services
not otherwise offered in remote areas. The key to unlocking
these opportunities lies in greater access to services which
are readily available in larger rural communities and in urban
areas.
It is important to note that broadband can add tremendous
educational opportunities to small communities. The ability to
access online courses, study materials, research, and online
lectures afford students some of the most efficient and cost-
effective avenues for not only continuing their education but
turning their curiosity into careers. And these opportunities
are supported through several programs which provide resources
to local facilities such as schools and libraries.
However, none of these opportunities can exist if the
community itself is not connected with a robust high-speed
network. Getting the most rural areas connected, much like the
Rural Electrification Act accomplished for telephone service,
remains a priority of this Committee. When the farm bill was
reauthorized this year, several provisions were included to
continue making these critical investments in small towns and
cities. I know in my district I too often visit towns and
communities who have been waiting patiently for years for full
access to the information superhighway. I know a lot has been
done to bring access to rural communities, but it is my goal
and the goal of this Committee to be able to do more than just
tell people to wait a little longer.
With us today we have representatives from USDA and
industry who are on the front lines of expanding broadband
service. The loan and grant programs provided through USDA and
reauthorized in the 2014 Farm Bill are specifically designed to
target the most rural and unserved areas in the country.
While the focus of this hearing is on the deployment of
broadband through RUS programs, these programs are not operated
in a vacuum. In the discussion today I believe it will be
helpful to review those changes in the recent farm bill in
light of the FCC's changes to how rural telecom companies
receive assistance. The efforts by the FCC to reform the USF
have a direct impact on smaller rate of return carriers who
both rely on USF support to provide service and RUS loans to
expand their coverage areas.
As the FCC transitions into providing telecommunications
access beyond traditional voice service, a careful coordination
among the responsible agencies is critical to ensure funds are
not wasted and the taxpayers receive the greatest return on
these investments. Coordination across government programs is a
major challenge in our nation made up of the various states,
counties and towns, each with their unique needs and
approaches. The same approach to deploying service does not
work well in all geographic areas. The Committee maintains the
technology-neutral approach to broadband, and today we look
forward to learning more about the various approaches being
taken to address the unique challenges in each area of rural
America.
Among the questions I believe our witnesses can help us
answer include, how are the current programs facilitating the
expansion of broadband network? How are providers taking
advantage of emerging technology? What are the roles of the
various types of providers in pushing farther into unserved
areas? And how are the elements of USF reform and USDA loan
programs coming together to ensure efficient use of resources?
I look forward to the testimony from our witnesses today to
help the Committee understand the barriers to broadband
deployment and how USDA is coordinating across related agencies
to ensure the most effective deployment of broadband possible.
[The prepared statement of Mr. Crawford follows:]
Prepared Statement of Hon. Eric A. ``Rick'' Crawford, a Representative
in Congress from Arkansas
Good morning, and welcome to this hearing to review broadband
deployment in rural America. In this modern age it is surprising to
know that there are some parts of the country where the live video feed
from this hearing is not viewable by our rural constituents due to a
lack of broadband access. In a time when commerce, leisure, and a
transparent government rely on robust networks, we still find
communities which are not connected through high-speed broadband.
There are many communities still struggling to recover from a poor
economy, to attract new businesses, and to connect to new, critical
services not otherwise offered in remote areas. The key to unlocking
these opportunities lies in greater access to services which are
readily available in larger rural communities and urban areas.
It is important to note that broadband can add tremendous
educational opportunities to small communities. The ability to access
online courses, study materials, research, and online lectures affords
students some of the most efficient and cost-effective avenues for not
only continuing their education but turning their curiosity into
careers. And these opportunities are supported through several programs
which provide resources to local facilities such as schools and
libraries.
However none of those opportunities can exist if the community
itself is not connected with a robust, high-speed network. Getting the
most rural areas connected, much like the Rural Electrification Act
accomplished for telephone service, remains a priority of this
Committee. When the farm bill was reauthorized this year, several
provisions were included to continue making these critical investments
in small towns and cities.
I know in my district I too often visit towns and communities who
have been waiting patiently for years for full access to the
information superhighway. I know a lot has been done to help bring
access to rural communities, but it is my goal and the goal of this
Committee to be able to do more than just tell people to wait a little
longer.
With us today we have representatives from USDA and industry who
are on the front lines of expanding broadband service. The loan and
grant programs provided through USDA and reauthorized in the 2014 Farm
Bill are specifically designed to target the most rural and unserved
areas in the country.
While the focus of this hearing is on the deployment of broadband
through RUS programs, these programs are not operated in a vacuum. In
the discussion today, I believe it will be helpful to review those
changes in the recent farm bill in light of the FCC's (Federal
Communications Commission) changes to how rural telecommunication
companies receive assistance. The efforts by the FCC to reform the USF
(Universal Service Fund) have a direct impact on smaller rate-of-return
carriers who both rely on USF support to provide service, and RUS loans
to expand their coverage areas.
As the FCC transitions into providing telecommunications beyond
traditional voice service, a careful coordination among the responsible
agencies is critical to ensure funds are not wasted and the taxpayers
receive the greatest return on these investments. Coordination across
government programs is a major challenge in our nation made up of the
various states, counties, cities, and towns, each with their unique
needs and approaches.
The same approach to deploying service does not work in all
geographic areas. The Committee maintains a technology neutral approach
to broadband and today we look forward to learning more about the
various approaches being taken to address the unique challenges in each
area of rural America. Among the questions I believe our witnesses can
help us answer include: how are the current programs facilitating the
expansion of broadband networks; how are providers taking advantage of
emerging technology, what are the roles of the various types of
providers in pushing farther into unserved areas; and how are the
elements of USF reform and USDA loan programs coming together to ensure
efficient use of resources?
I look forward to the testimony from our witnesses today, to help
the Committee understand the barriers to broadband deployment, and how
USDA is coordinating across related agencies to ensure the most
effective deployment of broadband possible.
The Chairman. Now I would like to recognize the gentleman
from California, the Ranking Member, Mr. Costa for 5 minutes
for an opening statement.
OPENING STATEMENT OF HON. JIM COSTA, A REPRESENTATIVE IN
CONGRESS FROM CALIFORNIA
Mr. Costa. Thank you very much, Mr. Chairman, and I want to
thank the Members of the Subcommittee that are here. The title
of this morning's hearing, Coordinating Future Investments in
Broadband covers how we provide access to broadband throughout
America, the breadth and width, especially to our rural areas
that many of us represent as we try to take advantage of the
new technologies for all regions of America, and the panel, we
look forward to your testimony this morning as well as to those
here in the audience.
Rural America comprises \3/4\ of the nation's land area and
is home to more than 50 million people. We don't think about it
that way too often. We have almost 320 million people in the
country, and obviously the urban areas of America get the focus
most of the time. But rural America, think about it: \3/4\ of
the land area and 50 million people. Since the Great
Depression, the landscape of rural America has changed
dramatically, and our nation's policies related to that part of
the country have changed with it. Even as manufacturing in
service sectors have replaced agricultural production as the
dominant economic force in much of rural America, common needs
for our rural communities remain and therefore, again, the
importance of this Subcommittee hearing today.
The fact is: where you live, those 50 million people,
should not determine what kind of services are available to
you. The U.S. Department of Agriculture operates a number of
programs that are designed to expand access, in this case, to
broadband in rural areas, and funding was contained in the farm
bill that this Committee made some changes to that we passed
earlier this year. It was also part of a continuing effort in
the farm bill that we did 5 years ago, and it was also part of
an effort that we provided funding in the stimulus package back
in 2009 to provide connections in two different ways to
telecommunications companies throughout the country.
Whether it is in my home State of California or whether it
is across the country, Federal programs and private sector
service providers have made great progress in connecting rural
America. I want to highlight a few of the California figures
that illustrate why this issue of rural broadband is so
important, and like many Members, we all say, ``All politics
are local.'' So let me give you the perspective in terms of my
own district.
In 2008, a report by the California Broadband Task Force
showed that California led the nation in broadband penetration
with 96 percent of Californians having access to the
technology. According to the California Public Utilities
Commissioner's most recent statistics revised in June of this
year, 2014, the fixed broadband availability number now has
risen to 97+ percent. But this figure is also misleading. The
same statistics show that over 250,000 rural Californians still
lack access to broadband, even though the system has been
significantly expanded. However, just because broadband is
available, it doesn't mean that our constituents can use it, in
this case, my constituents. For example, in Merced County, in
my district, has a little more than 75,000 households,
broadband is available to 99 percent of those households, but
the California Public Utilities Commission says in Merced
County there is only 51 percent adoption rate, even though they
have a 99 percent penetration. What that tells me is that
despite the relative success of putting wires in the ground,
the Federal Government, broadband providers, and public
institutions still have a lot of work to do in bridging the
divide between the haves and the have-nots when it comes to
broadband, particularly in rural America.
Why does this divide remain and what are we doing to fix
the problem? I look forward to the testimony of our witness.
Despite the great work done in the 2014 Farm Bill on a
bipartisan level, and I want to commend my colleagues again for
that effort. What is disappointing is that I don't think that
here with this Committee or with the Department of
Agriculture--and this is just a gripe I have had for several
years now--that we address one of the biggest issues and that
is our Rural Development programs and the definition of what is
rural. And I will be on my soap box for 30 seconds here.
The fact is: my Congressional district, like many
Congressional districts, are very productive in terms of their
agricultural nature. But many of our communities are not only
rural but they are in many instances poor and disadvantaged.
All too often, communities in my district and across the
country are prevented from taking advantage of these programs
because we have a one-size-fits-all as it relates to the rural
definitions.
Despite the clear need, I think that we need to focus on
the eligibility for Rural Development programs, whether it is
in rural housing, health or essential community facilities,
largely because the criteria we use to define rural
communities--the cross cut across the country is not evenly
divided.
I appreciate the opportunity, Mr. Chairman, to hear from
the witnesses on both panels about what we can do to ensure
that everyone in our country, no matter where they live, where
they work, where they go to school, has access, which is so
important in the 21st century, to broadband and takes
advantages of these services so that we can economically
compete on a level playing field. So thank you very much for
giving me the time for the opening statement. I look forward to
the testimony and questions that we will have an opportunity to
ask.
The Chairman. I thank the gentleman for his opening
comments. I would request that other Members submit their
opening statements for the record so the witnesses may begin
their testimony and to ensure that there is ample time for
questions. Without objection, so ordered.
Our first panel is seated, and we are pleased to welcome
the Administrator of Rural Utilities Service in the United
States Department of Agriculture here in Washington, Mr. John
Padalino. And I want to thank you, Mr. Padalino, for taking the
time to be here. I know that you are on the cusp of a new
career. We will certainly miss your leadership. You have done a
fantastic job in your 5 years of service, and we wish you all
the best in your new challenge.
Having said that, we welcome your comments, and you are
recognized for 5 minutes, Mr. Padalino.
STATEMENT OF JOHN C. PADALINO, ADMINISTRATOR, RURAL UTILITIES
SERVICE, U.S. DEPARTMENT OF AGRICULTURE, WASHINGTON, D.C.
Mr. Padalino. Well, thank you, Mr. Chairman, Ranking Member
Costa, and Members of this Subcommittee. Thank you for the
opportunity to testify this morning regarding future
investments in broadband.
As Administrator of the Rural Utilities Service, I am proud
to lead an amazing group of people who are honoring their
predecessors in the Rural Electrification Administration by
continuing to encourage growth and development in rural areas
through investments in infrastructure.
The history of rural electrification and rural broadband
has many parallels. In the 1930s it took a series of Acts and
appropriations to establish a public system for financing,
designing, and planning rural electrification. Likewise, in the
21st century, it will take a sustained focus from Congress and
the Executive Branch to ensure that rural residents have the
same access to broadband as their urban and suburban
counterparts. This is why the Rural Utilities Service is as
relevant in the 21st century as the Rural Electrification
Administration was in the last.
Access to affordable broadband is important for economic
development, education, healthcare, energy and the environment,
government performance, civic engagement, and public safety.
Schools can engage in distance learning. Medical providers can
use remote medical diagnostics and monitoring. Farmers can
efficiently manage their crops by using advances in
agricultural technology. Yet, rural America faces challenges in
accessing this critical service. Rural areas remain behind non-
rural areas in broadband access. A 2012 study showed that 14.5
million rural Americans living in 6.5 million rural households,
nearly \1/4\ of the rural population, lack such access.
Rural areas also remain behind non-rural areas in adopting
available broadband. For example, Mississippi has a 26 percent
gap between urban and rural broadband adoption. In addition,
rural broadband deployment is costly, especially in remote,
frontier areas. It is estimated that the cost of reaching
250,000 housing units in those extremely rural areas will cost
$13.4 billion or an average of $53,600 per unit.
We cannot address this with loan dollars alone which is why
the Rural Gigabit pilot established by this Congress in the
2014 Farm Bill is so exciting. The Recovery Act also allowed
the Rural Utilities Service to explore and advance broadband in
hard-to-reach areas. It has expanded the capacity of our rural
communities beyond what they could do alone.
Investment in rural broadband must focus on three things:
connectivity, more work needs to be done to connect both the
un- and under-served; capacity, investments must focus also on
increasing the broadband speeds for those who do have access to
entry-level service; and creativity, we must look at levering
existing successes in rural areas by supporting rural
telecommunication providers and partnering with our rural
electric cooperatives in the areas where the large price-cap
carriers are not investing in broadband.
Since 2009 the Rural Utilities Service has invested over
$5.5 billion in broadband that will connect over 1.4 million
rural subscribers to new or improved service. The Rural
Utilities Service is focused on increasing capacity by insuring
that the Recovery Act funded projects through the Broadband
Initiative Program are completed on time and on budget. Today
almost 200,000 rural subscribers are receiving this service
with over 59,000 miles of fiber and over 1,200 wireless access
points currently deployed.
USDA and the Rural Utilities Service have been strong
advocates for rural consumers with the Federal Communications
Commission. In the last 2 years, Secretary Vilsack and I have
met with former Chairman Julius Genachowski and current
Chairman Tom Wheeler, each time stressing the importance of the
Rural Utilities Service and the Federal Communications
Commission working together, and we provided recommendations on
how to improve the Federal Communications Commission's
implementation of much-needed reforms through the Connect
America Fund.
The Rural Utilities Service telecommunication programs with
a combined loan portfolio of over $4.5 billion helped deliver
affordable and reliable advanced telecommunications services to
rural communities, services that are comparable to those in
urban and suburban America. We have a strong record of
supporting infrastructure upgrades, and together we can offer
even greater returns for our nation, including healthier, more
educated communities, and expanded markets for businesses.
Mr. Chairman, I appreciate your continued interest and that
of the Committee in broadband programs. At this time I am happy
to answer any questions you might have. Thank you.
[The prepared statement of Mr. Padalino follows:]
Prepared Statement of John C. Padalino, Administrator, Rural Utilities
Service, U.S. Department of Agriculture, Washington, D.C.
Chairman Crawford, Ranking Member Costa, and Members of this
Subcommittee, thank you for the opportunity to testify this morning
regarding Future Investments in Broadband.
The mission of the Rural Utilities Service (RUS) is to fund basic
infrastructure services, including electric, telecommunications, and
water and waste facilities in order to benefit rural America. RUS
infrastructure investments deliver reliable, affordable electricity to
power our homes and industries, broadband to expand access to
education, healthcare, business and social services in rural areas, and
clean, safe water to support healthy rural communities and meet the
growing needs of rural America.
As Administrator of RUS, I am proud to lead an amazing group of
people who are honoring their predecessors in the Rural Electrification
Administration by continuing to encourage growth and development in
rural areas through investments in infrastructure.
The history of rural electrification and rural broadband has many
parallels. In the 1930's it took a series of Acts and appropriations to
establish a public system for financing, designing, and planning rural
electrification. Likewise, in the 21st Century, it will take a
sustained focus from Congress and the Executive Branch to ensure that
rural residents have the same access to broadband as their urban and
suburban counterparts. The 1930 Census showed that ninety percent of
urban dwellers had access to electricity while only ten percent of
rural residents had similar access. Claiming lack of profitability,
private utilities declined to extend lines that would provide
electricity to rural areas.
The predecessor to RUS, the Rural Electrification Administration
(REA), was established by Executive Order signed by President Roosevelt
on May 11, 1935. The agency was created under authority from the
Emergency Relief Appropriation Act of 1935 a work relief bill that
authorized $100 million for rural electrification. A year later,
Congress passed the Rural Electrification Act fully establishing a long
term program to make loans available for the generation, transmission,
and distribution of electric energy in rural areas.
As the nation headed into World War II, it was estimated that
thirty-eight percent of rural Americans had no telephone service.
Commercial credit was not available because loans to rural systems were
not financially feasible. Referring to providing modern communications
in rural America, the REA Administrator stated in 1939 that
``Government assistance will be required if the job is ever to be
completed.'' REA's programs were successful in extending utility
service--electric and telephone--to persons in rural areas. By 1953
more than 90 percent of all farms in the United States had electricity.
In 1976, 90 percent of all farms had telephone service. At that time,
our investments in electric infrastructure and reliable telephone
service for those who live and work in rural areas improved the quality
of life for those Americans and strengthened the local economies.
The building of the rural electric infrastructure has facilitated
the use of diverse energy sources, including renewable energy sources
such as wind and solar power, and more. The modern business model for
energy services is likely to be a consumer-driven platform where
existing and rapidly advancing communications and electric technologies
are shifting the electric utility delivery marketplace from a
commodity-centric model to a consumer-centric model. Similarly, the
telecommunications industry made a paradigm shift from the central
switch of the telephone company to today's demand for ubiquitous
broadband delivered through the network and ordered up on smart
devices. Not surprisingly, the challenges faced during the
electrification of rural America resurfaced as private broadband
entities citing lack of end-users and profitability have not fully-
expanded broadband infrastructure into rural areas.
As a result, RUS is as relevant in the 21st Century as REA was in
the last century. RUS is actively positioning rural America--through
broadband investments--to compete in the global economy, benefit from
Internet-based educational opportunities, and take advantage of
telemedicine resources.
For example, in Arkansas RUS funded a telemedicine network through
the Distance Learning and Telemedicine program that has permitted
numerous patients, who previously would have been transported to Little
Rock, to receive local treatment at the direction of a remote
specialist.
Recently a patient who underwent surgery returned to the local
hospital 2 weeks later with a life-threatening blood clot in their
lungs. Utilizing the telemedicine network, a specialist in Little Rock
was connected to the patient and family, virtually at the patient's
bedside. The patient was able to be continuously monitored and receive
the best possible care without having to be transported to Little Rock.
The patient remained at the local hospital and made a full recovery.
Rural Utilities Service and Broadband
The broadband loan and grant programs at RUS are intended to
accelerate the deployment of broadband services in rural America.
``Broadband'' refers to high-speed Internet access and advanced
telecommunications services for private homes, commercial
establishments, schools, and public institutions. Currently in the
United States, residential broadband is primarily provided via mobile
wireless (e.g., ``smartphones''), cable modem (from the local provider
of cable television service), or over the telephone line (digital
subscriber line or ``DSL''). Other broadband technologies include fiber
optic cable, fixed wireless, satellite, and broadband over power lines
(BPL).
Broadband access enables a number of beneficial applications to
individual users and to communities. These include e-commerce,
telecommuting, voice service (Voice-over-Internet Protocol or
``VoIP''), distance learning, telemedicine, public safety, and others.
It is becoming generally accepted that broadband access in a community
can play an important role in economic development.
Telecommunications Programs
Since 1995, RUS has been in the forefront of meeting rural
consumers' demand by requiring broadband capable technology in all
telephone loans in order to play a major role in closing the urban
rural digital divide. Today, RUS is focused on funding and providing
broadband to rural America through the traditional telecommunications
program, the broadband program and the Broadband Initiatives Program
(BIP) funded through the American Recovery and Reinvestment Act of 2009
(Recovery Act). Through Recovery Act investments alone, RUS awarded
over $3.4 billion in funding for broadband projects and has helped
extend broadband access in rural areas. As a result of the Recovery Act
BIP program, over 59,566 miles of fiber and 1,281 wireless access
points have been deployed to serve over 168,703 households, 12,539
businesses, and 1,786 critical community facilities across rural
America.
Broadband and Rural America
Access to affordable broadband is viewed as particularly important
for the economic development of rural areas because it enables
individuals and businesses to participate fully in the online economy
regardless of geographical location. For example, aside from enabling
existing businesses to remain in their rural locations, broadband
access could attract new business enterprises drawn by lower costs and
a more desirable lifestyle. Essentially, broadband potentially allows
businesses and individuals in rural America to live locally while
competing globally in an online environment.
Bobcat Company in Gwinner, North Dakota is a perfect example of the
need for rural broadband infrastructure to compete in the global
economy. RUS provided several infrastructure loans to Dakota Central
Telephone Company (Daktel), and most recently a BIP loan and grant to
assist with addressing the challenge of rapidly expanding the access
and quality of broadband services. Bobcat is a large manufacturing
employer in rural North Dakota. The company has one of the most
extensive compact equipment distribution networks in the world and uses
Daktel's fiber network to link to other company locations around the
world.
Given the large potential impact broadband may have on the economic
development of rural America, concerns have been raised over a
``digital divide'' between rural and urban or suburban areas, with
respect to broadband deployment. While there are many examples of rural
communities with state-of-the-art telecommunications facilities, recent
surveys and studies have indicated that, in general, rural areas tend
to lag behind urban and suburban areas in broadband deployment. For
example, according to the Federal Communications Commission's Eighth
Broadband Progress Report, released in August 2012, of the 19 million
Americans who live where fixed broadband is unavailable, 14.5 million
live in rural areas.
The 2013 Department of Commerce report, Exploring the Digital
Nation: America's Emerging Online Experience, found that while the
digital divide between urban and rural areas has lessened since 2007,
it still persists with 72% of urban households adopting broadband
service in 2011, compared to 58% of rural households.
The comparatively lower population density of rural areas is likely
the major reason why broadband is less deployed than in more highly
populated suburban and urban areas. Particularly for wireline broadband
technologies--such as cable modem, fiber, and DSL--the greater the
geographical distances among customers, the larger the cost to serve
those customers. Thus, there is less incentive for companies to invest
in broadband in rural areas than, for example, in an urban area where
there is more demand (more customers with perhaps higher incomes) and
less cost to wire the market area.
The terrain of rural areas can also be a hindrance, in that it is
more expensive to deploy broadband technologies in mountainous or
heavily forested areas. An additional cost factor for remote areas can
be the expense of ``backhaul'' (e.g., the ``middle mile''), which
refers to the installation of a dedicated line that transmits a signal
to and from an Internet backbone, which is typically located in or near
an urban area.
As a result, the economic impact on rural America of not having
broadband is significant. For example, an economic study from Oregon
State University in 2014 provided data showing the impact on rural
Oregon communities with increased broadband adoption between 2008 and
2011. There was positive impact on changes in median household income
and total employment (analysis limited to non-metro counties) over a
short period of time.
Conclusion
Broadband deployment is increasingly seen as providing a path
towards greater regional economic development. From our long history of
working with companies in rural America and providing capital for
broadband infrastructure, we know that many rural areas, due to factors
such as low population density and high costs associated with difficult
terrain, have difficulty attracting the investment required for a
sustainable broadband operation.
To meet the goal of increasing economic opportunity in rural
America, RUS programs finance rural telecommunications infrastructure.
RUS telecommunications programs, with a combined loan portfolio of $4.6
billion, help deliver affordable and reliable advanced
telecommunications services to rural communities--services comparable
to those in urban and suburban areas of the America. Infrastructure
investments offer returns for rural America--building, deploying, and
using broadband increases access to health care and education, expands
markets for businesses, and increases the quality of life for rural
Americans. None of this can happen without expanding broadband
connectivity and capacity in rural America.
I thank the Committee and its Members for their continued interest
in broadband programs.
The Chairman. I thank the gentleman for your testimony. I
would also like to make a correction. Obviously, I
mispronounced your name. My apologies, Mr. Padalino. I said Mr.
Padalino. So that is probably not the first time that has ever
happened.
Mr. Padalino. It is not the first time. My grandfather did
say never let them get your name wrong, but out of due respect,
I did not correct you.
The Chairman. I appreciate that. My apologies. Thank you
for your opening comments. I recognize myself for 5 minutes.
In a report dated May 2014, the GAO cited a high number of
failed projects. In the details of that report they seem to
refer interchangeably to rescissions and defaults. Do you agree
that the two outcomes should be in the same category? And can
you explain how those should be viewed?
Mr. Padalino. Thank you for that question. I don't agree
that they should be considered in the same category. A
rescission is markedly different than a default. A rescission
is a project where we have obligated funds to the project, and
for some reason, the project applicant couldn't meet the
conditions to have the loan closed. And over a certain amount
of time the agency will make a decision or maybe even at the
request of the applicant to rescind the funds. The funds come
back to the government, either go back to Treasury or are
turned around for future loans. So that is a rescission. A
default is where a project is underway, advances have been made
by the agency, and for some reason the loan applicant cannot
make a repayment. And they are talking about monetary defaults
in this situation, and those are markedly different.
When I read the GAO report--thinking about rescissions, I
thought, that is good government. That is us doing our job at
the Rural Utilities Service to make sure that an applicant
comes up with the needed working capital, that comes up with
the needed conditions to make sure that that loan can close,
and if that can't happen, we will rescind the money and turn
that money back around.
On defaults: this is a new program. It has only been in
place a little over 10 years thanks to Congress in the 2002
Farm Bill amended in the 2008 and again in the 2014. And as I
noted in my opening remarks, the history of rural
electrification, the history of rural broadband has a lot of
starts and stops. We have learned lessons from the farm bill
program, from the Recovery Act program, and have implemented
those in our regulations. In some ways, we have been ahead of
the GAO in looking at our program.
The Chairman. In that same report, concerns were raised
that USDA may not have a process in place to ensure that
approved loans were not rescinded because of a lack of working
capital on hand which often resulted in wasted effort by RUS
and tied-up funds which could have otherwise been used on
projects elsewhere.
Can you explain why this would be the case and what USDA is
doing to address that concern now?
Mr. Padalino. Yes, thank you. The 2008 Farm Bill had a ten
percent equity requirement, and that is the requirement that
really ensures that there is working capital available. It
provided the Secretary discretion to have additional
requirements if, in the agency's discretion, we felt that more
cash was needed to ensure that during the time of construction,
enough working capital was available when there are negative
cash flows to make sure that construction can go to completion
and can get through the first few years of service. Out of the
2008 Farm Bill, when we published the interim rule in 2011 and
then the final rule in 2013, as an agency, we added an
additional cash requirement from those lessons learned from the
early days of broadband. That additional requirement, cash
requirement, focuses on start-up operations, on operations that
have had negative cash flows for the 2 years prior to
submission of a loan application. We feel that that is a strong
signal that we are looking at cash flow, at the working capital
issue. That is the number one issue when it comes to either a
project being rescinded or even a default.
The Chairman. Okay. The FCC has pursued several major
changes to the Universal Service Fund, and I have mentioned
this in my opening statement. How has that impacted investments
through RUS programs, and can you share your insights on how
those changes might influence the approach taken by RUS
borrowers when considering plans for expansion of services?
Mr. Padalino. Whenever I am asked about--I would just like
to note that on one hand it is good policy to shift from a
telephone-based support mechanism to a broadband base support
mechanism. When the FCC issued their Order, their
Transformation Order, in 2011, what we saw is demand for RUS
investment almost come to a halt. It really has chilled
investment in rural areas because the Order, while well-
meaning, had a lot of undetermined business, undecided business
in there where an investor, a small company in rural areas,
cooperative-owned company in rural areas, they just didn't want
to make future investments not knowing what the regulatory
policy was going to be. So far the FCC has implemented some of
the reforms that they said were to be determined in that 2011
Order, but more remains and even some of the reforms that have
been issued have caused some detrimental effects to rural
areas.
The Chairman. Thank you. I have run out of time. I would
like to recognize the Ranking Member, the gentleman from
California, Mr. Costa, for 5 minutes.
Mr. Costa. Thank you very much, Mr. Chairman. Mr. Padalino,
what tools would you describe--and I know in your testimony you
listed some of them--that you think are available that we
should be focused on with regards to the Rural Utilities
Service to get the rural areas connected across the country to
some of those areas that I represent, for example?
Mr. Padalino. Well, thank you for that question. The
available tools that we have in the loan programs we have the
Traditional Infrastructure Loan Program available to
communications providers who are focusing on communities 5,000
or less, the Broadband Loan Program focused on----
Mr. Costa. So that would include as I discussed with you
earlier--I don't know if there is such a definition, mom-and-
pop telephone companies anymore. But we do have these smaller
companies that really are a reflection of some that have been
owned in a family for 50 or 100 years or longer that have
20,000 connections or whatever the number may be. This would
provide support for them because I have seen that example
successfully utilized.
Mr. Padalino. Yes, two of the providers in your district
are owned by a parent company, but those two providers are
those rural local exchange carriers who have taken advantage of
the Infrastructure Loan Program for the last 60 years since
Congress established it in 1949. It has been a great tool. It
has been a great resource for our rural telecommunications
providers out there. The Broadband Loan Program tried to expand
the reach so we could go beyond the rural local exchange
carriers into that price-cap territory where the big providers
just weren't providing broadband service.
We also have the Community Connect Grant Program that
really focuses on communities that are wholly unserved,
provides grant funds so we can establish a broadband system and
network in that community, also together with the community
center so people can learn to use the broadband once it is
available. We have the Distance Learning Telemedicine Program
in Arkansas. I visited Baptist Health in Little Rock where
there is a floor on the hospital that doctors are available 24/7 that is providing medical services to rural clinics across
the state. Those are the tools that we have available.
We also have to provide technical assistance. Just in the
past few months, we have done a number of broadband workshops
across the country where we focus on areas that are unserved or
under-served receiving broadband--
Mr. Costa. To that point, and I used that in my statement,
what is the technical assistance that you provide for lower
income communities so that we can improve the adoption rates as
the example I used in Merced County? But I know those adoption
rates are a problem throughout the country.
Mr. Padalino. Well, part of my perspective at the Rural
Utilities Service has been to look what we did back in the REA
early days where we not only provided the access to funding to
build the electric systems but we had road shows essentially
that went out and taught people how to use the electricity once
they had it. We had people who walked you through all the
different appliances that would be available, and the broadband
workshops are focused on an economic development perspective
from the theme of: ``You have broadband, now what,'' to make
sure that if a community that doesn't have broadband receives
loan funds or a grant to build a broadband system, that they
have a plan to use that broadband so more and more people will
adopt it.
Mr. Costa. It is our understanding that no broadband loans
will be awarded until the new regulations implementing the
latest farm bill are developed. When do you expect these new
regulations to be released so that the broadband loans can be
expanded?
Mr. Padalino. The 2014 Farm Bill was passed in February,
signed into law in February. We have been hard at work with the
regulations, and we expect that they will be published in
calendar year 2015.
Mr. Costa. And then the loan program can proceed following
that?
Mr. Padalino. Yes, Congressman, as soon as the--
Mr. Costa. So we are to tell our constituents that until
2015, you are not going to be able to proceed with any of the
loan programs?
Mr. Padalino. We won't be able to process the loans, but
there is a lot of front-end work that folks can take a look at
the statute already and see what the requirements are, see what
the service area requirements are in the statute that is out
there and that we are happy to talk to them in general about
broadband but we won't be able----
Mr. Costa. Let me get to one other technical question here
because it deals with the Recovery Act funding. Under the
Broadband Initiative Program projects must be completed by June
2015. All the funding will expire by 2015. Given that 85
percent of the projects are not yet completed, do you expect
that any projects still not completed by June 2015, how many
would you estimate and what steps can the Rural Utilities
Service provide to ensure that these projects will be completed
after that date?
Mr. Padalino. Sure. Thank you for that question. We are
focused on all the projects that are within construction. We
have 255 active projects right now.
Mr. Costa. Two-hundred and fifty-five?
Mr. Padalino. Seventy-five percent of the funds have been
disbursed already. We work with each awardee almost on a weekly
basis via telephone or site visits. We are constantly engaged
with each awardee. We expect all the projects will be completed
as proposed. Throughout the 4 or 5 years of the Recovery Act,
we have seen projects that fall in and out of being at risk of
not be in completion, and one issue or another may arise. We
work with the awardee to try to resolve that issue, and we so
far have been successful with that and we plan to continue
those steps going through the next year. June--
Mr. Costa. Go ahead.
Mr. Padalino. June of 2015 is our contractual requirement
that they be substantially complete, and by the end of
September by statute the funds will be no longer available.
Mr. Costa. Thank you. My time has expired.
The Chairman. I thank the Ranking Member and recognize the
gentleman from New York, Mr. Gibson, for 5 minutes.
Mr. Gibson. I thank the Chairman and the Ranking Member for
putting this together. And Mr. Padalino, I just want to say how
much we appreciate your service. Our district has really
benefitted from your leadership. We have had conference calls
together. We have worked on a number of issues, and I just
greatly appreciate you and your team. We want to wish you the
best, going forward, and I know that the continued outstanding
service will be with your successor.
So just a couple things. First of all, just a testimonial
how important the telemedicine aspect is to rural areas. I will
tell you that one of the pilot hospitals, Margaretville, has
two doctors. They happen to be a married couple. And what a
huge difference the telemedicine pilot project made. And they
were actually able to deliver their first baby since the 1970s
with this. It is a very small hospital in rural America. And
then also, after Hurricanes Irene and Lee, they saved two
lives. A tree came down on the chest, and they were able to
consult with the broadband capacity with experts from fairly
nearby, about an hour's drive, hospitals and made a huge
difference, saved lives.
And finally on this score, this couple was able to take
their first vacation in 4 years because they were still
accessible, and they actually consulted on a medical procedure
from Bali. We are able to keep a couple in this hospital which
allows us to keep this going. So I just want to underscore how
important these programs that you are leading, how important
they are to rural America.
In your comments you talked about--which I really want to
affiliate and associate myself with. You certainly didn't show
any prejudice to any particular approach, whether it be big
company or small company. But you did note that a lot of the
small companies are very aggressive on this score, and I would
concur. I mean, these family-owned businesses, they live in our
communities. They see firsthand every day the impact on
education, on healthcare delivery, on job creation, on quality
of life that access to high-speed broadband can make a
difference, and conversely, when you don't have it, what the
impacts are. As I look at this issue, again, I am happy to see
anyone advance rural broadband from any perspective, and we
work together on the Committee here. We played a role in the
recent farm bill and some of the reforms to bring transparency
and effectiveness.
Looking at the FCC's program and your program, I am
interested in ways we can continue to build out capacity and
empower our smaller companies. My read of the initial rules, or
I should say the rules coming out on the FCC, is that my
smaller companies and the rural co-ops are going to get a
better access to some of the Connect America funds. That is my
read of it, and I am encouraged. I would be curious to know if
that is your read. And then, going forward, I am interested in
also, might there be ways so we can improve some of the
programs under the RUS so we can get these smaller companies in
the rural co-ops to find this profitable?
One of the ideas that I had--well, actually, it was I think
Senator Gillibrand and I concur is that we could tweak the
program a little bit, provide for--if you bring ten percent
non-Federal money, then you would get a ten percent grant, and
the balance, the 80 percent, would be in the low-interest loan.
I am curious to know your feedback on that. Sorry I went on so
long.
Mr. Padalino. Well, thank you for your compliments,
Congressman, and to get right to your questions, FCC recently
announced the rural broadband experiments is Phase II of the
Connect America funding, and they are trying to make, for
price-cap areas, they have established a budget of $100 million
to make that money available for a 10 year recurring basis to a
wide variety of providers, including electric cooperatives, to
compete for that money, to say we can put the best project out
there in those areas. And I agree with you that the electric
co-ops were started by community members, the telephone co-ops
were, even the for-profit telecommunication companies are
locally owned, and I really believe that local people in rural
areas are the best resource for advancing that.
And some of the tweaks we can think about is how we can
leverage our rural electric providers out there, the rural
electric cooperatives. You know, they have a much larger
footprint than some of our smaller rural telecommunications
companies, and how can we build a partnership between those
rural telecommunications and rural electric cooperatives,
together with the FCC, combine the support mechanisms from the
FCC with the low-cost loans? I am interested in that proposal
that you talked about, about bringing in private investment.
The Administration recently announced the Rural Opportunity
Investment Fund. There is going to be a source of private money
there, and with a solution like that we can leverage more and
more resources to advance the cause of broadband.
Mr. Gibson. Thank you. Thank you very much, and good luck
to you, going forward, too. Thanks, Mr. Chairman.
The Chairman. You bet. The gentleman's time has expired. I
now recognize the gentleman from Minnesota for 5 minutes, Mr.
Nolan.
Mr. Nolan. Thank you, Mr. Chairman. I just want to join my
colleagues in commending the Administrator for the terrific job
that you are doing, and I want to commend my Chairman and
Ranking Member for conducting this hearing. As one who lives in
the remote areas of northern Minnesota on a farm where the
Little Pine and the Big Pine River come together, I was an
early beneficiary of the advantages of broadband which greatly
enabled me to expand and conduct my international business as
an exporter of American goods and services.
And I am of the view that expansion of broadband to rural
areas may be singularly the most important thing that we can do
to expand business opportunities in rural areas for small
business. And it is no secret that most new jobs and economic
development in this country occur from the small business
sector, and in essence, what broadband does for rural areas, it
puts them in the same position that a big, multi-national
corporation would be sitting in Manhattan or Minneapolis or Los
Angeles when it comes to their communications with the rest of
the nation, the rest of the world in making readily available
to them all the knowledge, information, and services that are
out there.
So I just want to commend you for what you are doing and
the Chairman for conducting this important hearing and lend my
support and my encouragement to all that you are doing. Keep up
the good work, and keep pushing and you have a lot of people
here who believe in what you are doing and want to help in any
way and every way we can to help facilitate that. Thank you.
Mr. Padalino. Well, thank you, Congressman. The Rural
Utilities Service is really a gem in the Federal Government. It
is the only Federal agency that directly finances
infrastructure. We hear a lot of talk about building
infrastructure banks, green banks, all kinds of banks, but we
have one that Congress established 80 years ago. It is the
Rural Utilities Service, and we have been hard at work
providing infrastructure investments from our water and waste
systems to our electric systems. We are trying to build a new,
energy-efficient rural America, and of course, advance the
cause of broadband. So thank you for your remarks.
The Chairman. The gentleman yields back. With that I just--
before we conclude this panel, Mr. Padalino, I wanted to expand
on a point that the Ranking Member brought up, the current
projects under way, funding expires June 2015. Just to clarify,
if a project that is currently under way is not completed by
2015, what would then be the disposition of those projects?
Mr. Padalino. If a project ends up at the end of September,
September 30, 2015, without being complete, they will no longer
have funds available from RUS. So whatever funds remain undrawn
won't be available anymore. They could still complete their
project with some other financing, but those Recovery Act
provided dollars will revert back to the Treasury.
The Chairman. Okay. Thank you. And again, we do want to
thank you for taking time out to come. Ranking Member?
Mr. Costa. Just to follow up, if the gentleman would yield.
Now, it seems rather abrupt. I guess I am trying to understand.
Let us say one of these rural telephone companies has a loan or
a grant. They can be either. And let us pick a number for
discussion purposes. It is a $1 million grant for improvement
for access. And they have let the contracts to the improvements
and they have spent half of it or 60 percent of it but they are
not complete. And June 2015 runs around, and all of a sudden,
they are left--even though they have let the contracts for the
other $400,000 because it is not completed?
Mr. Padalino. Our focus has been to ensure that doesn't
happen. We have been--over the last few years, we asked in
early September--or January 2012, all the awardees, where are
you at with your construction? Do you need to amend your
timelines so we can understand where you are at? We have
numerous webinars. We are about to send out another letter
reminding awardees that you are about a year out from
completion. We need to know where you are at. We stay at the
local level through our general field representatives that are
very engaged with the borrowers through site visits, phone
calls. We require numerous reports----
Mr. Costa. So let me make a suggestion. I think that is all
good, but the Members of this Subcommittee, and maybe it is
something staff could work with the Members of the full
Committee, but it would be nice if we had a listing of--I don't
know if the number is 255 or whatever you stated earlier--these
projects that are currently ongoing so that we could know those
that are in our respective Congressional districts, and we
could help complement your efforts to say, ``Look. You are on a
timeline here, and you need to do everything you can to
expedite it so that you are able to complete the project,''
because that would--certainly we would like to know. I don't
think any of us would like to find a situation where next March
we have our local telephone company calling us and saying, ``We
are \2/3\ done with our project, but we are not going to
complete it until August, and they are telling us now we are
going to run out of their money. What can you do to help us?''
The Chairman. If the gentleman would yield, clarification
between grants and loans? If we could have that as well on
those 255 projects that you mentioned because that
clarification would be helpful as well. And if you could make a
distinction? I understand a grant is obviously different than a
loan, but are we going to see that funding unavailable for
loans that have already been made as well, or can they reapply
at some point if in fact they didn't meet that timeline?
Mr. Padalino. I thank you for your offer, and we really
appreciate the assistance and will be happy to work with the
staff on providing that information.
[The information referred to is located on p. 53.]
Mr. Padalino. Just a couple quick clarifications. On those
255 active projects, 44 of those have been fully complete. We
have over about 140 of them that are partially complete which
means they are providing broadband in all or part of their
service territories, but there is just some remaining punch
list items to be completed. Again, 75 percent of the funds have
been disbursed. Over 90 percent of the proposed miles of fiber
and proposed wireless access points have been deployed. Where
many of these projects are is at the last phases of the project
where they are doing the cut-overs, connecting subscribers to
those services. But we really appreciate the offer of support,
and I am happy to work with your staff.
The Chairman. All right. Thank you. The gentleman yields.
With that, Mr. Padalino, again, we want to dismiss you with our
thanks for your service and with our best wishes for your
future, and we appreciate you. Thank you so much.
Mr. Padalino. Thank you.
The Chairman. We will now move into our second panel, and
as our panel takes position, I will go ahead and introduce
those individuals. Comprising panel two, Mr. Lang Zimmerman is
the Vice President of Yelcot Communications in Mountain Home,
Arkansas. He is testifying on behalf of the National
Telecommunications Cooperative Association. Mr. David Cohen,
the Vice President for Policy, at USTelecom based here in
Washington, D.C. Mr. Robert L. Hance, President and CEO,
Midwest Energy Cooperative, Cassopolis, Michigan, testifying on
behalf of the National Rural Electric Cooperative Association,
and Mr. Christopher Guttman-McCabe, Executive Vice President,
CTIA--The Wireless Association here in Washington, D.C.
Welcome. Gentlemen, we appreciate you being here, and with
that, I will introduce our first panelist, Mr. Lang Zimmerman
who, as I said, is Vice President of Yelcot Communications in
Mountain Home, Arkansas, which is, I am proud to say, in my
Congressional district. Mr. Zimmerman and to all our panelists,
I will just remind you. You see the lights in front of you?
Green means you are good to go, and it is just like when you
are driving. If you see a yellow light, go like heck because it
is fixing to stop. And when you see the red light, that means
stop. And we will take your expanded comments and your written
comments, but for the sake of time, we would just ask that you
limit your oral presentation to 5 minutes. And with that, I am
pleased to recognize Mr. Lang Zimmerman for 5 minutes.
STATEMENT OF LANG ZIMMERMAN, VICE PRESIDENT, YELCOT
COMMUNICATIONS, MOUNTAIN HOME, AR; ON BEHALF OF NTCA--THE RURAL
BROADBAND ASSOCIATION
Mr. Zimmerman. Chairman Crawford, Ranking Member Costa, and
Members of the Subcommittee, thank you for the invitation to
participate in today's discussion. My name is Lang Zimmerman,
and for the past 29 years I have served as Vice President of
Yelcot Telephone Company, headquartered in Mountain Home,
Arkansas, and my remarks today are on behalf of Yelcot as well
as NTCA--The Rural Broadband Association and their several
hundred small community-based members that provide a variety of
communications services throughout the rural far reaches of the
nation.
We believe our industry is uniquely qualified to
participate in today's discussion because we are small
businesses on the front lines deploying high-speed, sustainable
broadband to rural America. Yelcot is a carrier of last resort
and has always operated under the premise that if someone wants
service in our service area, then we do whatever it takes to
serve them. Because of this commitment, and with the aid of key
Rural Development programs and Universal Service support, rural
Arkansans throughout the Yelcot service area, and indeed
throughout the markets of all the NTCA members, have access to
reasonably comparable services at reasonably comparable rates
as mandated by current and longstanding law.
Small, rural telecom members of NTCA provide access to
voice, video, wireless and broadband Internet services as well
as enhanced emergency preparedness. Most importantly, they
connect rural Americans to the entire world. In rural America,
that translates into economic development that produces jobs.
Broadband has become essential to delivering healthcare,
educational opportunities, and securing the public safety. And
much of the business world is already demanding higher
broadband speeds to help it interact with and sell to customers
near and far. Broadband and other services provided by the
rural telecom industry serve as an incubator for small business
ideas in rural America to be implemented and to flourish.
Yelcot's top priority has always been to provide every one
of our consumers with the very best communications and customer
service possible at affordable rates that stimulate adoption.
The entrepreneurial spirit of Yelcot is representative of our
approximately 1,000 small, rural counterparts in the industry
who together serve about five percent of the U.S. population
across approximately 40 percent of the nation's geographic land
mass.
USDA's Rural Utilities Service, RUS, plays a crucial role
in rural broadband deployment through its telecom loan
portfolio that finances networks upgrades and deployment in
rural areas. RUS lending and USF support are inextricably
linked as 99.2 percent of RUS telecom infrastructure borrowers
like Yelcot receive high-cost USF support. The presence of
high-cost recovery is crucial to the ability of RUS borrowers
to repay our RUS telecom and broadband loans. RUS programs have
helped rural providers deploy modern networks in many rural
areas where the market would otherwise not support the
investment. Reliable access to capital helps rural carriers
meet the broadband needs of consumers at affordable rates.
Yelcot has first-hand experience working with RUS, and I
can testify to the benefit of having an experienced lender
available to finance projects at a fair rate. Yelcot and our
rural consumers continue to benefit from the RUS
Telecommunications Infrastructure Loan Program, which has
financed upgrades of our network to the fiber era. In the past
few years, with the help of RUS, Yelcot companies have added
over 130 miles of buried fiber cable, replaced ten central
offices with four soft switches and added or replaced over 50
remotes.
Unfortunately, applications for RUS telecom loans are down
dramatically at a time when customers everywhere are clamoring
for faster broadband. Why would an experienced lender such as
RUS want for loan applications when demand for networks is
high? Look no further than the state of rural telecom
regulation which includes an opaque and unpredictable USF
capping mechanism originally tossed out after years of lost
investment, a requirement for customers to purchase landline
voice service in order for their line to receive U.S. support
and plans to increase rural telephone rates to $20.46 in
Arkansas while the monthly rate in Washington, D.C. will remain
at $14.10.
We appreciate the support of those Members of Congress who
have contacted the FCC regarding the state of rural telecom
regulation. In particular, I would like to thank you, Chairman
Crawford, for signing a letter to the FCC regarding the
outdated requirement for customers to purchase landline voice
service in order for their line to receive USF support.
The benefits that some rural communities are already
experiencing will only be possible for all if robust broadband
is available and affordable. Rural telecom providers and
lenders such as RUS must have regulatory certainty before they
can make greater investments in the networks of the future. The
key to regulatory certainty is a USF remade for the broadband
era, including a broadband-oriented support mechanism for small
carriers that gives rural consumers options in selecting
services that best fit their needs.
Thank you again for the opportunity to testify, and I look
forward to answering any questions you may have.
[The prepared statement of Mr. Zimmerman follows:]
Prepared Statement of Lang Zimmerman, Vice President, Yelcot
Communications, Mountain Home, AR; on Behalf of NTCA--The Rural
Broadband Association
Introduction
The Rural Telecommunications Industry
Thank you for the invitation to participate in today's discussion
on coordinating future investment in broadband. For the past 29 years I
have served as Vice President of Yelcot Telephone Company, which is
headquartered in Mountain Home, AR. My remarks today are on behalf of
Yelcot Telephone Company, as well as NTCA--The Rural Broadband
Association and their several hundred small community-based members
that provide a variety of communications services throughout the rural
far reaches of the nation.
We believe our industry is uniquely qualified to participate in
today's discussion because we are small businesses leading the way in
deploying high-speed, sustainable broadband to rural America. Yelcot,
similar to about \1/2\ of the nation's small, community-based rural
providers, is a commercial company. Family or commercially-owned rural
providers are consumer-centric because they are locally owned and
operated. Likewise, in the cooperative structure that makes up the
other \1/2\ of small rural providers, the consumers are also the
owners, so every choice is viewed from both an owner and a consumer
perspective--the two are truly one and the same.
Yelcot is a carrier-of-last-resort and has always operated under
the premise that if someone wants service in our service area, then we
do whatever it takes to provide the would-be customer with that
service. Ever since Yelcot began operating in 1957, we've been proud to
serve as the only provider to some of the most rural areas of Arkansas,
while other carriers avoided investments in such areas and chose to
serve only the most profitable and densely populated towns. Because of
this commitment, and with the aid of key rural development programs and
Universal Service support, rural Americans throughout Yelcot's service
area, and indeed throughout the markets of NTCA members, are enjoying
universal voice service, access to mobile, video, and broadband
Internet services, and enhanced emergency preparedness.
Small, rural telecom providers connect rural Americans to the
world. Moreover, these rural network operators have been at the
forefront of the broadband and Internet Protocol (``IP'') evolution for
years, making every innovative effort to deploy advanced networks that
respond to consumer and business demands for cutting-edge services. In
rural America, that translates into economic development that produces
jobs, not only in agriculture, energy and other industries with a
strong rural presence, but in the healthcare sector, and just about any
other retail industry that requires broadband to operate in this day
and age. Broadband has become essential to delivering healthcare and
securing the public safety. And much of the business world is already
demanding higher broadband speeds to help it interact with and sell to
customers near and far. Broadband and other services provided by the
rural telecom industry serve as an incubator for small business ideas
in rural America to be implemented and to flourish.
Fixed and mobile broadband, fixed and mobile voice, video, and
Internet Service Provision are among the numerous telecom services that
rural Americans can access thanks to the rural industry commitment to
serving sparsely populated areas. Broadband-capable networks facilitate
greater interconnection of the community's resources and can enable
citizens' participation in the global economy, blue-ribbon education,
first-rate healthcare, cutting-edge government services, robust
security and more efficient energy distribution and use.
The rural telecom industry has always been at the forefront of
technological innovation, being the first segment of the industry to
completely convert to digital switched systems, provide wireless
options to their hardest to reach customers, offer distance learning
and telehealth applications, provide cable-based video, then satellite
video, and now IP video to their markets, and it was a member of the
RLEC community that first deployed an all-fiber system. The rural
industry continues to lead in the deployment of broadband capable
infrastructure.
Yelcot Telephone Profile
Yelcot's top priority has always been to provide every one of our
consumers with the very best communications and customer service
possible at affordable rates that stimulate adoption. Yelcot has
several lines of business, including ILEC, CLEC, ISP and Cable TV.
While our headquarters are in Mountain Home, we in fact serve over
7,946 customer lines across our 826 square mile rural service area that
is spread across northern Arkansas. This constitutes about 9.6
customers per square mile. We employ a total of 52 people and in 2013
our annual operating revenue was about $13.8 million. Our service area
is rural and sparsely populated, requiring great effort to get advanced
services to our customers.
The entrepreneurial spirit of Yelcot is representative of our
approximately 1,000 small rural counterparts in the industry, who
together serve 5% of the U.S. population across approximately 40% of
the nation's geographic land mass. Like the vast majority of our rural
colleagues, Yelcot has been an early adopter of new technologies and
services. In 2006, Yelcot upgraded its network to ADSL2+ (Fiber-to-the-
node). Yelcot currently has 10 Megabit broadband service available to
60% of our ILEC service area and 1.5 Megabit broadband available to 98%
of our service area. We can provide gigabit service where our fiber-to-
the-premises facilities are located. This fiber connection allows for
nearly limitless amounts of bandwidth. We know our customers will
require more and more bandwidth and have built a network that will
supply it.
RasorNET
Yelcot's reach extends beyond our service area to an exciting
partnership with Ritter Communications, South Arkansas Telephone, and
New Wave Communications to build RasorNET, a fiber backbone that
delivers 10 gigabit Ethernet transport, enhanced wireless backhaul, and
connections to other fiber backbones around the country. RasorNET
greatly enhances the online experience for all of Arkansas by providing
robust connectivity between major metropolitan areas and rural
communities in Arkansas. Only fiber connections will meet the
astronomic wired and wireless broadband demands of the near future, and
we're thrilled to help meet those consumer needs through RasorNET and
the fiber connections Yelcot delivers to the end user.
Rural Broadband Benefits the Entire U.S. Economy
A series of recent studies confirms that significant benefits flow
from rural broadband investment to broader urban and statewide
populations. The rural telecommunications industry supported $14.4
billion of economic impact in 2009, with $9.5 billion occurring in
urban areas, and more than 70,000 jobs, 45% of which were placed in
urban areas.\1\ In Colorado, rural telecom helped create 428 jobs,
adding over $21 million per year to state payrolls.\2\ North Dakota saw
an additional $18 million in Federal tax revenue and $31 million in
state tax revenue arising out 1,100 direct jobs and 800 secondary jobs
generated by rural telecommunications activity.\3\ The converse holds
true, however, from adverse changes--``reforms'' that cut investment in
rural broadband hurt state economies. In Kansas, for example, potential
cuts in Federal rural telecom programs led to projections of $1.4
million in personal income tax and $1.3 million in retail sales tax
losses.\4\ A personal income loss of $14.1 million was projected for
2012 alone in New Mexico from the same proposed cuts.\5\ Studies
examining the impact of rural communications activity--including
purchasing, employment figures, and projected tax revenues--confirm
rural communications to be a powerful generator of urban economic
growth and Federal and state tax revenue. In short, rural broadband is
an investment with real benefit and returns for the nation as a whole.
---------------------------------------------------------------------------
\1\ Kuttner, Hanns, The Economic Impact of Rural
Telecommunications: The Greater Gains, Hudson Institute, at 6, 8
(2011).
\2\ Shields, Martin, Cutler, Harvey, and Marturana, Michael, The
Impacts of Colorado Telecommunications Association Members on the
Colorado Economy, Regional Economics Institute, Colorado State
University, at 9 (Oct. 26, 2011).
\3\ McKee, Gregory, The Effect of Changes in Universal Service
Funding on the Economic Contribution of Rural Local Exchange Carriers
to the North Dakota State Economy, Department of Agribusiness and
Applied Economics, Agricultural Experiment Station, North Dakota State
University, at 16-19 (Dec. 2011) (``Like other RLECs, North Dakota
RLECs buy many specialized products and services not available in state
economies. National and international markets typically provide these
products and services.'').
\4\ Kansas Rural Local Exchange Carriers: Assessing the Impact of
the National Broadband Plan, W. Frank Barton School of Business, Center
for Economic Development and Business Research, Wichita State
University, at 11, 12 (2011).
\5\ Peach, James, Popp, Anthony V., and Delgado, Leo, The Potential
Economic Impact of the National Broadband Plan on the New Mexico
Exchange Carriers Group, Office of Policy Analysis, Arrowhead Center,
New Mexico State University, at 18 (2011)).
---------------------------------------------------------------------------
To not have access to high-speed Internet in this day and age is
unimaginable to most people, yet millions of Americans live in areas--
mostly in rural territory served by carriers other than small, rate-of-
return providers--where there is no robust broadband that enables
meaningful access to the countless economic and educational
opportunities available through the Internet. These people have small
business ideas that need broadband to succeed and they need jobs that
small businesses can provide. Yet, as important as it is to deliver
broadband to the unserved, it's just as vital that those already
receiving broadband remain served--the benefits that flow from
broadband are ongoing. If a network is built but then becomes
unsustainable or the services over it unaffordable or of poor quality,
such developments deny the benefits of broadband for small businesses
and all consumers.
Rural Utilities Service Financing
RUS Role in Rural Telecom Deployment
USDA's Rural Utilities Service (RUS) plays a crucial role in rural
broadband deployment through its telecom loan portfolio that finances
networks upgrades and deployments in rural areas. RUS has been lending
for broadband capable plant since the early 1990s. RUS lending and
Universal Service Fund (USF) support are inextricably linked as 99.2%
of RUS Telecommunications Infrastructure borrowers receive high cost
USF support. The presence of high cost recovery is crucial to the RUS
telecom and broadband loan calculus. RUS programs have helped rural
providers deploy modern networks in many rural areas where the market
would otherwise not support investment. Reliable access to capital
helps rural carriers meet the broadband needs of rural consumers at
affordable rates.
Unfortunately, the success, momentum, and economic development
achieved from the RUS's telecommunication programs were put at risk as
a result of the regulatory uncertainty arising out of USF reforms that
are discussed in greater detail below. It will be all the more
important to continue providing RUS with the resources it needs to lend
to the rural telecom industry as demand for financing will inevitably
increase when reforms are improved and small carriers are given
certainty, hopefully through a program like the Connect America Fund
that is designed to promote broadband investment. As Congress continues
to grapple with where to best direct scarce resources, it's important
to note that the RUS Broadband Loan Program and the traditional
Telecommunication Infrastructure Loan programs are funded with loans
that must be paid back with interest--creating a win/win situation for
rural broadband consumers and taxpayers. Rural providers look forward
to building on an already successful partnership with RUS.
Yelcot has first-hand experience working with RUS and I can testify
to the benefit of knowing that an experienced lender is available to
finance projects at a fair rate. Yelcot and our rural consumers
continue to benefit from the RUS Telecommunications Infrastructure Loan
program, which has financed upgrades of our network to the fiber era.
In the past few years, with the help of RUS, Yelcot companies have
added over 130 miles of buried fiber cable, replaced ten Central
Offices with four soft switches and added or replaced over 50 remotes.
Originally, a large Tier 1 provider was the only upstream transport
provider in one of our service areas, charging $220.00 per Mb. The Tier
1 provider would not upgrade their equipment, effectively capping the
upstream transport in that service area at 145 Mb. In another Yelcot
service area, there were few upstream transport options, and those were
costly at $150.00 per Mb. In 2009 Yelcot began an extensive fiber
project that took 4 years to complete. This project allowed us the
opportunity to connect with other upstream providers, as well as
providing a redundant upstream route. Yelcot now pays $8.12 per Mb, and
has over 30 times the original capacity.
Thanks to these lower costs and increased capacity, Yelcot has
recently doubled almost all of our subscribers' bandwidth with no price
increase whatsoever.
The Farm Bill Reauthorization
During the most recent farm bill reauthorization process, we
appreciated this Committee's efforts to make sensible changes to the
RUS Broadband Loan Program to ensure transparency, while avoiding
program performance delays and additional burdensome requirements on
borrowers. It is essential that small, rural providers are able to
access the RUS program without delay. Efforts to dramatically rewrite
the program, such as those proposed by the bill that the Senate
initially passed, would have resulted only in keeping broadband
investment on the sidelines and denying rural areas much-needed access
to broadband.
The multi-year rule implementation delay that resulted from the
2008 Farm Bill and the regulatory uncertainty arising out of the FCC's
efforts to reform Universal Service initiatives have left the Broadband
Loan Program and subsequent investment at a standstill. We hope the
most recent farm bill changes to the program do not result in another
multi-year implementation delay. Thankfully, it appears that the final
farm bill left RUS with discretion in administering the program that
grants sufficient leeway to make it function more smoothly than the
initial Senate farm bill would've allowed. Further, it is important
that Congress not tie RUS's hands by putting limited funds toward
projects that would offer a few people more bandwidth than they need
while others still lack reasonable broadband speeds. It is time to get
the Broadband Loan Program back to work for rural consumers.
The IP Evolution and Universal Service
The FCC's Universal Service Fund Reforms
Applications for RUS telecom loans are down dramatically at a time
when everyone is clamoring for faster broadband. According to a May
2014 GAO report, RUS received 29 applications for loans in Fiscal Years
2011-2013, compared to 130 in the first 3 full years of the program.\6\
Why would an experienced lender such as RUS want for customers when
demand for networks is high? Look no further than the state of rural
telecom regulation.
---------------------------------------------------------------------------
\6\ U.S. Government Accountability Office. (2014).
Telecommunications: USDA Should Evaluate the Performance of the Rural
Broadband Loan Program. (GAO Publication No. GAO-14-471). Retrieved
from http://www.gao.gov/assets/670/663578.pdf.
---------------------------------------------------------------------------
For some rural areas, FCC rules still require customers to purchase
landline voice service in order for their line to receive USF support.
The customer is effectively denied the option of cutting the landline-
voice cord and purchasing only broadband. All the while, the FCC
continues to design new caps for the legacy USF that was intended to
support voice telephony. The last attempt to cap USF was thrown out
after pressure from Congress highlighted the regulatory uncertainty and
lost investment produced by the FCC's opaque, unpredictable mechanism.
Scarce resources are being put toward developing new caps, while small,
rate-of-return providers await a broadband-oriented mechanism such as
the Connect America Fund (CAF) that larger price-cap carriers already
have access to. The price-cap providers' CAF is in year 4 of
development--a good indication that greater emphasis should be placed
on finishing a similar fund for small carriers as soon as possible.
The situation grew more desperate on March 20, 2014, when the FCC
announced that the ``local rate floor,'' to which small, rural carriers
must increase their local voice telephone rates by July 1, 2014 to
avoid losing certain Universal Service support, would increase from $14
to $20.46. The agency later agreed to push the compliance date back to
2015 and phase in the increase, but the underlying methodology that
produces the rate floor remains flawed. The rate floor is meant to
guarantee compliance with a statutory directive to ensure ``reasonable
comparability'' in rural and urban rates. ``Reasonable comparability''
does not mean the rates should be exactly the same, but does allow the
FCC to work with state stakeholders on a methodology that reflects
inherent differences in the deployment and operation of rural and urban
networks, as well as the simple fact that the rural customer can call
much fewer people through local service than the urban customer. If not
addressed promptly, the rate hike will likely lead some consumers to
``cut the cord'' on voice service, which would drastically increase
their broadband rates due to the aforementioned lack of a CAF for small
providers that supports broadband-capable networks.
Such outdated rules that undermine consumer freedom and inhibit
technological evolution present an obstacle to the technology
transition that consumers and industry are making and the FCC is
working to expedite and facilitate in other contexts. Universal Service
support should not be tied to a limited service, but available instead
to advanced networks that provide consumers with access to a variety of
essential, high-quality services from which each consumer may choose.
The FCC should move forward immediately to adopt and implement a
carefully tailored update of USF that will provide sufficient and
predictable support for broadband-capable networks in areas served by
smaller rural carriers. Over 130 Members of Congress--including
Chairman Crawford and other Agriculture Committee leaders--along with
dozens of organizations that serve rural America encouraged the FCC to
act through a series of letters earlier this year.\7\
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\7\ See U.S. House letter led by Representative Gardner and U.S.
Senate letter led by Senators Thune and Klobuchar, both sent to FCC
Chairman Wheeler on May 6, 2014. See also rural organizations letter
sent to Chairman Wheeler on March 5, 2014.
---------------------------------------------------------------------------
The broadband revolution presents major opportunities for small
businesses to innovate and grow, but the business (or entrepreneur with
an idea) must have broadband access to take full advantage. Markets
will ensure many consumers realize the full benefits of innovation at
the lowest possible prices, but in rural areas there are often no such
markets to speak of. Though small, rural providers have been leaders in
broadband investment even under the current statutory and regulatory
regime, further law and policy changes will be necessary to ensure high
cost rural areas remain served while providers edge out into unserved
areas.
The Role of the Communications Act and Potential Reforms
The delivery of voice and nearly every other telecom service is
undergoing transformative change through the IP Evolution--that is,
telecom and information services are increasingly converging as IP
applications that run over broadband. This phenomenon has rendered the
current legal regime outdated, as it regulates the same service
differently based on the technology platform the service rides on.
IP, wireless, and other technological advances are changing the
marketplace in ways unimagined even a few years ago, but technology
alone will not miraculously solve the high costs of rural broadband
deployment. Indeed, the IP Evolution that is already occurring under
existing regulatory frameworks will be promoted and sustained only
through careful, focused statutory and policy updates that are guided
by the Communications Act's core principles of consumer protection,
competition, Universal Service, and public safety. Similarly, NTCA's IP
evolution petition filed with the FCC in late 2012 called for a careful
regulatory approach to the transition that considers what rules make
sense in this broadband age if we're to remain true to those same core
principles. Given the challenges to serving rural areas, the answer
won't be the legal and regulatory status quo, nor will it be complete
deregulation.
The Communications Act's timeless goal of making advanced
nationwide and worldwide wired and wireless networks available and
affordable for all Americans \8\ is as important as ever in an
increasingly interconnected and competitive broadband-based economy.
This Universal Service mandate, which builds upon decades of national
policy, has been--and remains--essential in enabling small rural
providers to deploy and upgrade cutting-edge networks over time where
no other carrier or entity could find a business case to do so.
---------------------------------------------------------------------------
\8\ 47 U.S. Code 254(b).
---------------------------------------------------------------------------
A faithful and disciplined approach to the core Communications Act
principle of Universal Service must ensure that, even in the event of
any statutory or regulatory update, those areas served through support
from Federal and state USF mechanisms not only ``become'' served in the
first instance, but that they ``remain'' served, and that consumers and
businesses everywhere can make full use of advanced communications
services at affordable rates. Further, Congress should ensure that
specific, predictable and sufficient support will continue to be
provided to help ensure reasonably comparable services at reasonably
comparable rates in rural, high-cost areas, as mandated by current law.
Congress should also consider an express directive to the FCC to
ensure that all who use our nation's networks--by whatever service or
technology--are responsible to contribute to the universal well-being
and availability of those networks on an equitable basis. USF is still
funded by assessing interstate and international long distance
telephone service. The pool of assessable telecommunications service
revenues is shrinking even as overall communications-related revenues
grow. As a result, the USF program effectively has an artificial
funding ceiling that lowers a bit each day due to the failure to
broaden the contribution base and to stem the incentives (and
abilities) that are in place today which encourage or allow entities to
avoid contributing. This de facto cap on the USF program will handicap
severely our nation's ability to fulfill the statutory core principles
of Universal Service, competition, and public safety, unless changes
are made. Indeed, broadening the contribution base to include the
information services that USF already supports has previously received
bipartisan backing in the U.S. House.\9\
---------------------------------------------------------------------------
\9\ See H.R. 5828 102(a), 111th Cong., 2d Sess. (2010).
---------------------------------------------------------------------------
Rural Broadband Experiments
The FCC recently adopted a report, Order and further notice of
proposed rulemaking for rural broadband experiments. The Order
implements a $100 million budget funded by unused Connect America Fund
support. Hundreds of NTCA member companies--including Yelcot
Telephone--and other entities have already expressed initial interest
in participating in these rural broadband experiments, consistent with
their decades-long commitment to solving the communications needs of
rural communities. This small, rate-of-return carrier commitment to
service was highlighted by the FCC's decision to only accept
applications to deploy networks in locations served by price-cap
carriers. We are interested in seeing the precise rules that will
govern these experiments, and we are hopeful that they will help
further the mission of Universal Service consistent with applicable
law.
Conclusion
Entrepreneurial small rural carriers have leveraged private
capital, Universal Service support, intercarrier compensation, and
public-private partnerships to lead the ongoing IP Evolution. These
small businesses play an essential role in deploying broadband to rural
areas, and the services enabled by broadband are essential to the
startup, operation, and growth of other rural small businesses. Rural
America has a bright future powered by smart technologies that promote
affordability, sustainability, and efficiency in the operation of rural
industry and the delivery of essential services such as healthcare,
education, and public safety--all key to rural population growth. The
benefits that some rural communities are already experiencing will only
be possible for all if robust broadband is available and affordable.
Rural telecom providers and lenders such as RUS must have regulatory
certainty before they can make greater investments in the networks of
the future. The key to regulatory certainty is a broadband-oriented
support mechanism for small, rate-of-return carriers that gives rural
consumers options in selecting the services that best fit their needs.
The Chairman. Outstanding. Right before the red light. That
was perfect. Thank you, Mr. Zimmerman.
I am pleased to recognize now Mr. David Cohen, Vice
President of Policy, USTelecom, Washington, D.C. Mr. Cohen, you
are recognized for 5 minutes.
STATEMENT OF DAVID COHEN, VICE PRESIDENT, POLICY, UNITED STATES
TELECOM ASSOCIATION (USTELECOM), WASHINGTON, D.C.
Mr. Cohen. Chairman Crawford, Ranking Member Costa,
Subcommittee Members, thank you for the opportunity to present
the progress being made in bringing broadband to rural
American.
It is timely and appropriate to review how the Rural
Utilities Service and the Federal Communications Commission can
coordinate to extend and improve broadband availability.
I am David Cohen, and I serve as Vice President of Policy
at USTelecom. Our association represents innovative broadband
companies including some of the largest companies in the U.S.
economy as well as small cooperatives and family-owned
providers. We share the determination to bring broadband
services to all Americans.
Our members have spent enormous sums and made great
progress in bringing broadband to rural areas. Seventy-eight
percent of Americans living in rural areas have access to wired
broadband. However, more can and should be done.
The FCC's Universal Service Fund, USF, and the Telecom Loan
Programs of RUS are complementary elements in building out
rural broadband.
As the FCC continues modernizing USF, coordination with RUS
is necessary. The FCC should remain cognizant that RUS has a
large portfolio of loans to borrowers that derive a significant
portion of their revenues from USF. USF must also ensure a
predictable level of future support so that carriers can
confidently plan, borrow, and invest in facilities.
In 2011 the FCC adopted the landmark USF Order which
changed USF from supporting voice service to supporting
broadband. The FCC created a two-phase Connect America Fund,
CAF, for price-cap companies serving rural America including
AT&T, CenturyLink, Frontier, Windstream and others but did not
replace the legacy USF mechanism for smaller, rate-of-return
companies. The FCC noted the amounts of traditional USF for
price-cap carriers had not provided sufficient funding to
deliver broadband. As a result, 85 percent of the 18 million
Americans lacking adequate broadband live in price-cap areas.
CAF Phases I and II were designed for those areas that had
historically been under-funded by USF.
To spur immediate build-out, the FCC provided interim
support of over $500 million to price-cap carriers willing to
take on broadband service obligations to which companies added
hundreds of millions of dollars of their own. Consequently,
almost a million more rural Americans will be connected to
broadband.
CAF Phase II, the permanent mechanism for price-cap areas
is expected to begin in 2015. It will offer price-cap companies
a fixed amount of money to meet vigorous broadband service
obligations. The FCC provided price-cap carriers an initial
opportunity to access CAF II funds. The FCC wisely rejected
calls by some to jump in front of the line and overturn that
FCC decision to make the most efficient and cost-effective use
of the limited funds to build out rural broadband.
The FCC anticipates in asking price-cap carriers whether to
accept the obligations and funding by the end of this year.
Where price-cap companies don't elect funding, the FCC will
conduct an auction open to all those willing and able to
undertake the broadband obligations.
It is important to distinguish between CAF Phase II and the
FCC's Rural Broadband Experiments Program. The FCC allocated
$100 million for experiments to explore how to structure the
auction and to engage interest in deploying new networks. The
program drew 1,000 expressions of interest. Of the 690 that
USTelecom sampled, 78 percent asked for more than the support
available. So while many would-be providers may make facile
representations about being able to provide broadband service
in rural areas, even under the very informal expressions of
interest process almost four out of five proposed to do so
above the FCC's reserve prices.
The FCC has made less progress in establishing a USF
program for rate-of-return carriers. The program doesn't
support rural lines where the customer gets broadband from the
rural carrier but voice from someone else. To plan, borrow and
invest in broadband, small companies need a USF that supports
broadband-only lines and has some certainty as to future
revenues.
The FCC hasn't adopted a plan that allows small companies
in RUS to determine which future loans and investments are
feasible. The rural telecom industry has proposed such a plan
which the FCC should seriously consider.
In conclusion, the targeted assistance offered by RUS
coordinated with the FCC's USF program remain essential to a
healthy rural economy. Thank you for your commitment which we
share to accelerate rural development by making broadband
available to rural America.
[The prepared statement of Mr. Cohen follows:]
Prepared Statement of David Cohen, Vice President, Policy, United
States Telecom Association (USTelecom), Washington, D.C.
Chairman Crawford, Ranking Member Costa, Members of the Committee,
thank you for giving me the opportunity to appear before you today to
present the progress being made by our member companies in bringing
ubiquitous high-speed broadband service to rural Americans. Immense
benefits accrue to rural areas where broadband service is present,
including enabling rural development, distance learning and remote
health care. It is timely and appropriate that the Subcommittee take
time to review how the Rural Utilities Service (RUS) and the Federal
Communications Commission (FCC) are coordinating to extend and improve
broadband availability in difficult to serve low-density rural areas.
My name is David Cohen and I serve as Vice President of Policy at
USTelecom. Our association represents innovative broadband companies
ranging from some of the largest companies in the U.S. economy to some
of the smallest cooperatives and family-owned telecom providers in
rural America. Our members offer a wide range of communications
services on both a fixed and mobile basis, and the overwhelming
majority of them offer advanced broadband services including voice,
video and data. Rural America relies on our members' wireline networks
for service to consumers and to make the connections to cell towers to
enable wireless communications. The customers who rely on our networks
include residential consumers, businesses large and small, and
government entities at the local, state and Federal levels. What unites
our diverse membership is our shared determination to deliver broadband
services to all Americans--regardless of their location.
Investment in broadband network infrastructure has created jobs,
spurred innovation, and revolutionized the way Americans learn, work,
communicate, and shop. That investment is particularly important in
rural America because broadband can overcome barriers such as distance
and remoteness that can impede development. Our members have spent
enormous sums and made great progress in bringing broadband to rural
America. Today, according to a report by the Commerce Department's
National Telecommunications and Information Administration reflecting
mid-2013 data, 78 percent of Americans living in rural areas have
access to wired broadband. But we are not here to rest on our laurels;
more can and should be done to increase the availability and
performance of broadband in rural areas.
The FCC and RUS Should Continue to Coordinate Efforts to Bring
Broadband to Unserved Areas
The High-Cost Universal Service Fund (USF) administered by the
Federal Communications Commission (FCC) and the Broadband and
Infrastructure Loan Programs of the Rural Utilities Service (RUS) are
key complementary elements in deploying cutting edge communications
services to rural America. As the FCC modernizes the USF program to
conform to developments in technology and in the marketplace,
coordination between it and RUS is necessary to continue the progress
that has been made to build out broadband facilities in rural areas.
The FCC should remain cognizant that RUS has a sizeable portfolio of
loans to borrowers that derive a significant portion of their revenues
from USF. Future USF mechanisms must ensure reasonable predictability
as to the level of future support so that carriers can confidently
plan, borrow and make long-term investments in building out fixed cost
facilities designed to last for decades.
USF for Areas Served by Price Cap Companies
In 2011 the FCC adopted its landmark USF/ICC Transformation Order,
designed to evolve its high-cost Universal Service regime from
supporting voice service to supporting broadband. In that Order, the
FCC created a two-phase Connect America Fund (CAF) for the larger,
price-cap companies such as AT&T, CenturyLink, Windstream and Frontier,
and reformed but did not replace the legacy USF mechanism for smaller,
rate-of-return companies such as Smithville in Chairman Crawford's
district and Kerman in the district of Ranking Member Costa. The FCC
noted that at the time it adopted its Order, more than 83 percent of
the approximately 18 million Americans lacking access at or above the
FCC's broadband speed benchmark lived in areas served by price-cap
carriers. The FCC's National Broadband Plan explained that while the
old system of funding for such carriers supported phone service to
lines served by price-cap carriers, the amounts did not provide an
incentive for the costly upgrades necessary to deliver broadband to
these customers.
CAF Phase I and CAF Phase II are essential vehicles for providing
necessary support to price-cap service areas that historically have
been under-funded because of inadequate USF support. By targeting
funding to the locations served by price-cap carriers, CAF Phase I
incremental support and CAF Phase II are instrumental to achieving the
Commission's broadband deployment goals.
To spur immediate build out in price-cap company areas, the FCC
offered additional funding under its CAF Phase I program to price-cap
carriers that elected to take on the obligations associated with the
funding. Not only did price-cap companies accept over $500 million in
CAF Phase I funds, they kicked in hundreds of millions of dollars of
their own capital to bring broadband to rural areas. Construction is
well underway pursuant to that funding and, according to the FCC,
almost a million more rural Americans are already or soon will be
receiving broadband service.
The FCC has not yet implemented CAF Phase II, the permanent CAF
mechanism for areas served by price-cap companies. Implementation is
expected early in 2015. The FCC has consistently and wisely rejected
calls by some to jump in front of the line and overturn the FCC's
considered decision to make the most efficient and cost-effective use
of the limited funds available in order to accelerate the availability
of broadband to rural Americans. The FCC has done this by providing
price-cap carriers with an initial opportunity to expand and upgrade
service by accepting CAF Phase I and CAF Phase II funds.
CAF Phase II will offer price-cap companies a fixed amount of
money, determined for each state by a cost model, to meet vigorous
broadband service obligations. Under the current CAF Phase II
structure, a company electing to participate in a particular state
would receive 5 years of CAF support (for an investment amortized for
up to 25 years) and be obligated to provide broadband speeds at 4 Mbps
downstream and 1 Mbps upstream. The FCC is considering increasing the
speed requirement to 10 Mbps downstream which, because of the
additional costs involved in providing faster service, should be
accompanied by a longer funding term and greater program flexibility.
USTelecom supports the adoption of the higher speed requirement if
accompanied by modifications to the terms of support including the
provision of funding for 10 years. The FCC has committed to making this
determination soon and price-cap carriers will be electing whether to
accept the state-level obligation and funding by the end of this year.
In states in which price-cap companies do not elect funding, the FCC
will conduct a competitive bidding process open to all those willing
and able to undertake the broadband obligations. Winners in the
competitive bidding process will receive support for 10 years.
The FCC's Rural Broadband Experiments
It is important to distinguish between the CAF Phase II mechanism
and the Rural Broadband Experiments program recently adopted by the
FCC. That program is budgeted at a one-time amount of $100 million and
will be used by the FCC to explore how to structure the CAF Phase II
competitive bidding process in price-cap areas and to gather valuable
information about interest in deploying next generation networks in
high-cost areas. USTelecom shares the Commission's goal of ensuring
cost-effective and universal broadband connectivity in rural America.
The FCC's Rural Broadband Experiments program drew more than a thousand
``expressions of interest'' from potential participants. Those
participants will now be able to submit formal applications for
funding. USTelecom reviewed a random sample of 690 of the more than
1,000 expressions of interest filed for the Rural Broadband
Experiments. The results of USTelecom's review suggest that most of the
substantive expressions of interest sought levels of funding
substantially greater than the CAF Phase II model-based support for the
proposed service area. The results show that 78 percent of the sampled
expressions of interest asked for more than the CAF II support
available and that on average the requested amount for this group was
almost ten times more than the available support. Overall, the 227
expressions of interest reviewed under USTelecom's streamlined approach
sought almost four times the CAF Phase II support available, asking for
$2.4 billion in support for Census tracts identified as having $620
million in available support. So while many would-be providers may make
facile representations about being able to provide broadband service in
rural areas, even under the very informal ``expressions of interest''
process, almost four out of five proposed to do so at funding levels
above the reserve prices set by the FCC.
USF for Rate-of-Return Companies
In contrast to the CAF program to provide support in areas served
by price-cap carriers, the FCC has made less progress in establishing a
high-cost Universal Service program to provide support to smaller rate-
of-return carriers serving rural areas. The current program does not
provide support to rural lines where the customer subscribes to
broadband service from the rural local exchange carrier but obtains
voice service from another carrier, usually a mobile provider. Also,
the amount of funding provided to rate-of-return companies is based on
legacy mechanisms developed to support voice services. In order to
plan, borrow and invest in long-term broadband facilities, rate-of-
return companies need a high-cost USF mechanism that is designed for
the new broadband world, supports broadband-only lines and incorporates
a reasonable amount of certainty as to future revenues. While the FCC's
recent repeal of its Quantile Regression Analysis (QRA) limitation on
support that could be provided to individual carriers was a major step
in the right direction, the FCC is still developing a plan that small
rural carriers, and RUS, can quantify and evaluate to determine which
future loans and investments are feasible and whether past loans and
investments can be repaid. The rural telecom industry has proposed a
plan that would carefully transition from the current mechanisms to new
broadband mechanisms and operate within the established budgetary
limitations. The FCC should give this plan serious consideration.
USTelecom members appreciate the strong support the Agriculture
Committee has provided for RUS telecommunications programs since their
inception in 1949. RUS endures because it is a public-private
partnership in which the borrowers are the conduits for the Federal
benefits that flow to rural telecom customers--the true program
beneficiaries. The targeted assistance offered by the RUS broadband and
telecommunications loan programs--thoughtfully coordinated with the
FCC's high-cost programs--remain essential to a healthy and growing
rural economy and contribute to the provision of universal
communications services comparable to those found in urban areas.
In closing, let me again thank the Subcommittee for holding this
timely hearing. We share the Subcommittee's commitment to accelerating
rural development by making broadband services available to rural
American homes, businesses, schools, libraries and healthcare
institutions and we look forward to our continued work together to
address this constantly evolving challenge.
The Chairman. Thank you, Mr. Cohen. Next I am pleased to
recognize Mr. Robert L. Hance, President and CEO of Midwest
Energy Cooperative, Cassopolis, Michigan, testifying on behalf
of the National Rural Electric Cooperative Association. Mr.
Hance, you are recognized for 5 minutes.
STATEMENT OF ROBERT L. HANCE, PRESIDENT AND CHIEF EXECUTIVE
OFFICER, MIDWEST ENERGY COOPERATIVE, CASSOPOLIS, MI; ON BEHALF
OF NATIONAL RURAL
ELECTRIC COOPERATIVE ASSOCIATION
Mr. Hance. Chairman Crawford, Ranking Member Costa, Members
of the Subcommittee, good morning. My name is Bob Hance. Thank
you for the opportunity to testify before this distinguished
Subcommittee to coordinate future investments in rural
broadband.
I am the President and CEO of Midwest Energy Cooperative,
an electric cooperative serving more than 35,000 members in
southern Michigan, northern Indiana, and Ohio.
I am also testifying on behalf of the National Rural
Electric Cooperative Association. NRECA is the national service
organization for more than 900 not-for-profit rural electric
utilities that provide energy to over 42 million people in 47
states. Electric cooperatives own and maintain 2.5 million
miles of the nation's electric distribution lines, covering 75
percent of the U.S. landmass.
In the 1930s, rural electric cooperatives like Midwest
Energy answered the call of rural America to bring electricity
to the countryside. Electricity was a vital and transformative
product that larger investor-owned utilities were unwilling and
unable to provide to rural America. Today, Midwest Energy and
other rural electric cooperatives are again answering the call
to develop the next transformative utility, robust broadband. I
am proud to discuss with you Midwest Energy's rural broadband
initiative offered through our telecommunications subsidiary,
Midwest Connections.
According to a recent NTIA study, only 23 percent of rural
residents have wireline broadband at a speed of 50 Mbps
compared to 98 percent of urban residents. The National
Broadband Map and anecdotal evidence from our members suggests
that in the Midwest service area, 50 Megabits is even less
available. Significant gaps in the availability of broadband in
rural America strand our members on the wrong side of the
digital divide.
In response to member demand, Midwest began investigating
the opportunity to provide this valuable service. It became
clear that although billions have been spent in rural
telecommunications, little infrastructure exists in rural areas
to provide broadband. Midwest explored satellite and broadband
over power line solutions, but they all failed to provide
reliable and scalable service. Ultimately, Midwest designed a
243 mile fiber ring through utility substations and facilities
for the immediate purpose of fostering a smarter grid for our
members. Leveraging this key asset provides us a unique
opportunity to deploy high-speed, next-generation broadband
solutions where one currently does not exist.
Midwest and other rural electric cooperatives need your
support to compete for the billions of dollars available to
provide broadband in high-cost areas. Midwest and more than 100
other electric cooperatives filed expressions of interest in
response to a request by the Federal Communications Commission.
The overwhelming response prompted the FCC to move forward with
conducting rural broadband experiments. Any company interested
in providing robust broadband may bid for financial support.
The Commission is actively considering whether or not to
similarly extend the opportunity to compete to areas covered by
unsuccessful experiment applications.
Rural electric cooperatives like Midwest are championing an
inclusive competitive process. The FCC will consider the
comments of industry, consumers, and legislators in conjunction
with its experience in the rural broadband experiments to allow
competition in rural areas for building broadband networks.
The FCC is poised to award almost $20 billion of Connect
America funding to support high-cost areas. This is a once-in-
a-generation opportunity to deploy broadband in rural
communities who deserve to be full participants in our modern
economy. Midwest and NRECA appreciate the efforts of the FCC to
create an inclusive environment where all eligible providers
have an opportunity to compete for support in offering creative
solutions and to close the gap between broadband available in
urban and rural areas.
In conclusion, cooperatives like Midwest Energy are well-
suited to build and maintain broadband networks. We aren't
asking for preferential treatment, just an opportunity to
compete. We do not seek to exclude anyone from the
conversation, but we do believe that a narrow view of the
solution may condemn our communities to the wrong side of the
digital divide.
I want to repeat this last point. Midwest advocates for an
inclusive opening of opportunity to provide broadband to
service rural counties. The status quo approach is exclusive
and limits opportunity to those who have always received high
cost support. Given the current lack of broadband in rural
areas, Midwest strongly believes that if the Commission and
Congress do not open the playing field to competition, rural
America may never have the chance to experience the educational
opportunities, employment prospects, and advanced healthcare
that broadband delivers to those lucky enough to live in low-
cost, high-population centers.
Thank you for the opportunity to testify before this
distinguished Subcommittee. I welcome any questions.
[The prepared statement of Mr. Hance follows:]
Prepared Statement of Robert L. Hance, President and Chief Executive
Officer, Midwest Energy Cooperative, Cassopolis, MI; on Behalf of
National Rural Electric Cooperative Association
Chairman Crawford, Ranking Member Costa, and Members of the
Subcommittee:
Good morning. My name is Bob Hance. Thank you for the opportunity
to testify before this distinguished Subcommittee to discuss
coordinating future investments in rural broadband.
I am the President and CEO of Midwest Energy Cooperative, an
electric cooperative serving more than 35,000 members in Southern
Michigan, Northern Indiana and Ohio. I've worked in the electric
cooperative business since 1974.
I am also testifying on behalf of the National Rural Electric
Cooperative Association (NRECA). NRECA is the national service
organization for more than 900 not-for-profit rural electric utilities
that provide electric energy to over 42 million people in 47 states or
12 percent of electric customers. Electric cooperatives own and
maintain 2.5 million miles or 42 percent of the nation's electric
distribution lines, covering 75 percent of the U.S. landmass and serve
an average of 7.4 consumer owners per mile.
In the 1930s, rural electric cooperatives, like Midwest Energy,
answered the call of rural America to bring electricity to the
countryside. Electricity was a vital and transformative product that
larger investor-owned utilities were unwilling and unable to provide to
rural America. Today, Midwest Energy and other rural electric
cooperatives are again answering the call to develop the next
transformative utility, robust broadband, in rural America. I am proud
to discuss with you Midwest Energy's rural broadband initiative,
offered through our telecommunications subsidiary, Midwest Connections.
According to a recent NTIA study, only 23 percent of rural
residents have wireline broadband at a speed of 50 Mbps compared to 98
percent of urban residents.\1\ The National Broadband Map and anecdotal
evidence from our members suggests that in the Midwest service area, 50
Mbps is even less available.\2\ Significant gaps in the availability of
broadband in rural America strand our members on the wrong side of the
digital divide. Without robust access to broadband, these Americans
cannot take advantage of the educational opportunities or employment
prospects that most Americans now take for granted. Our members are
clamoring for access to the same level of broadband access as urban
Americans. For example, professors from both the University of Notre
Dame and Western Michigan University live within the Midwest service
territory. They enjoy robust broadband at work, but when they come home
they lose the ability to work because they lack sufficient broadband
service.\3\ We've heard similar complaints from members who work at the
Kellogg World Headquarters in Battle Creek, the Whirlpool World
Headquarters in Benton Harbor and at Pfizer's large manufacturing
facility in Portage.\4\ The modern world demands reliable, affordable
access to broadband.
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\1\ Broadband Availability: Beyond the Rural/Urban Divide. (2013).
Available at http://www.ntia.doc.gov/files/ntia/publications/
broadband_availability_rural_urban_june_2011_
final.pdf.
\2\ See the National Broadband Map. http://www.broadbandmap.gov/speed.
\3\ Midwest sent a Call to Action to its members to gauge the
interest in deploying broadband. Within days, Midwest received more
than 600 responses. One member noted: ``We need to finish the job of
providing broadband to rural areas even when it doesn't fit a profit
model. The expense to not providing national coverage to all
populations is far more costly. Let rural electric cooperatives that
are poised to deliver a high-speed broadband solution do what they do
so well; provide service to rural America.''
\4\ There are many other significant educational institutions and
world class employers in and near Midwest's service territory. The
economic viability of rural areas depends on the extension of
broadband.
---------------------------------------------------------------------------
In response to member demand, Midwest began investigating the
opportunity to provide this valuable service. It became clear that
although billions have been spent in rural telecommunications, little
infrastructure exists in rural areas to provide broadband. Midwest
explored satellite and broadband over power line solutions, but they
all failed to provide reliable, scalable service. Ultimately, Midwest
designed a 243 mile fiber ring through utility substations and
facilities for the immediate purpose of fostering a smarter grid for
our members.\5\ Leveraging this key asset provides us a unique
opportunity to deploy a high-speed, next-generation broadband solution
where one currently does not exist. Construction has begun and will
continue to roll out slowly.
---------------------------------------------------------------------------
\5\ The Executive Summary for Midwest's fiber project is attached
as Exhibit A.
---------------------------------------------------------------------------
Rural electric cooperatives, like Midwest, provide service to more
than 42 million Americans. We serve the lowest population density by
mile.\6\ Electric cooperatives grew out of a need to serve communities
where no other utilities saw adequate financial incentive. We are
closely connected to our members and we leverage that relationship to
be as responsive as possible to their needs. Today, our members tell us
that need is broadband.
---------------------------------------------------------------------------
\6\ Cooperatives serve an average of 7.4 members per mile compared
to Municipal electric companies who serve 48 customers per mile and
Investor-Owned Utilities that serve an average of 34 customers per
mile.
---------------------------------------------------------------------------
Across Co-op Nation, many electric cooperatives are pursuing and
implementing plans utilizing different models to deploy broadband to
rural America. Through the Recovery Act broadband programs delivered by
the Rural Utilities Service and the National Telecommunications and
Information Administration, 13 cooperatives in nine states received
funding for system designs that included fiber to the home, middle
mile, microwave and wireless technology.
Co-Mo Connect, a subsidiary of Co-Mo Electric Cooperative in
Tipton, Missouri is currently in phase two of a four phase fiber to the
home broadband project to provide service to the consumer members in
its service territory. When complete, Co-Mo's system will include 4,000
miles of fiber across its 2,300 square mile territory which will pass
31,500 homes and businesses, averaging 7.8 customers per mile. Co-Mo
Connect offers tiered subscription packages with symmetrical speeds
ranging from 5 Mbps to 1 Gbps of symmetrical service at competitive
prices ranging from $39.95-$99.95.\7\ When determining how to best
implement a triple play service offering, Co-Mo partnered with another
Missouri provider, Big River Telephone to provide voice service. On the
video side, Co-Mo is working with another cooperative in Missouri to
share equipment and transport expenses. Eventually, Co-Mo intends to
collaborate with other cooperatives in Missouri and surrounding states
to purchase the necessary video equipment and content necessary to
provide an even more competitive video service offering. This
collaborative effort would allow this group of cooperatives to share
the costs of specialized equipment and therefore keep the cost of
service more reasonable for its members. Co-Mo Connect has been
successful in obtaining affordable access to capital for the first two
phases of their project, but because each phase decreases in density it
seeks access to the FCC Connect America Fund to support the more rural
and costly portions of its territories.
---------------------------------------------------------------------------
\7\ A full description of Co-Mo's project and service packages can
be found at: http://co-mo.net/Co-Mo_Connect/Internet.html.
---------------------------------------------------------------------------
Another example of a cooperative bringing broadband to its members
is Northeast Rural Services, a subsidiary of Northeast Oklahoma
Electric Cooperative. Northeast Rural Services is building a fiber to
the home system throughout its service territory. It is utilizing a
Rural Utilities Service Broadband Loan to finance the system which will
provide triple play services and broadband speeds up to 1 Gbps.
Midwest, and other rural electric cooperatives need your support to
compete for the billions of dollars available to provide broadband in
high cost areas. Midwest and more than 100 other electric cooperatives
filed Expressions of Interest in response to a request by the Federal
Communications Commission to identify if there is interest and ability
for non-traditional providers to deploy broadband in rural, high cost
areas.\8\ The overwhelming response prompted the FCC to move forward
and conduct Rural Broadband Experiments. Any company interested in
providing robust broadband may bid for support at or below what is the
support available to the price-cap carrier serving eligible Census
blocks.\9\ The Commission is actively considering whether or not to
similarly extend the opportunity to compete to areas covered by an
unsuccessful Experiment Application. Rural electric cooperatives like
Midwest are championing an inclusive process. The FCC will consider the
comments of industry, consumers and legislators in conjunction with its
experience in the Rural Broadband Experiments to determine whether or
not to exempt areas where there is a demonstrated competitor from the
Right of First Refusal program described in the 2011 Transformation
Order.\10\ Given the small budget for the Experiments, there could be
many communities potentially eligible to compete for Federal support if
those communities are exempted from the Right of First Refusal and set
for a competitive auction.
---------------------------------------------------------------------------
\8\ Attached as Exhibit B is Midwest's Expression of Interest,
filed on March 14, 2014. Other Expressions of Interest can be found at
www.fcc.gov. A map developed by NRECA documenting the areas where a
rural electric cooperative submitted an Expression of Interest is
attached as Exhibit C.
\9\ Connect America Fund, ETC Annual Reports and Certifications, WC
Docket Nos. 10-90, 14-58, Report and Order and Further Notice of
Proposed Rulemaking, FCC 14-98 (July 14, 2014). Price-cap carriers are
generally the largest carriers providing local telephone service, like
AT&T, CenturyLink and Version.
\10\ See Connect America Fund, A National Broadband Plan for Our
Future, Establishing Just and Reasonable Rates for Local Exchange
Carriers, High-Cost Universal Service Support, Developing an Unified
Intercarrier Compensation Regime, Federal-State Joint Board on
Universal Service, Lifeline and Link-Up, Universal Service Reform--
Mobility Fund, WC Docket Nos. 10-90, 07-135, 05-337, 03-109, CC Docket
Nos. 01-92, 96-45, GN Docket No. 09-51, WT Docket No. 10-208, Report
and Order and Further Notice of Proposed Rulemaking, FCC 11-161 (Nov.
18, 2011).
---------------------------------------------------------------------------
The FCC is poised to award almost $20 billion Connect America
funding to support the high cost areas served by the price-cap
companies. This is a once in a generation opportunity to deploy
broadband in rural communities who deserve to be full participants in
our modern economy. Midwest appreciates the efforts of the FCC to
create an inclusive environment where all eligible providers have an
opportunity to compete for support in offering creative solutions and
to close the gap between broadband available in urban and rural areas.
The areas that Midwest and other electric cooperatives serve are
struggling. For the first time in our history, rural America lost
population. Since 2011, net job growth in non-metro areas has been near
zero.\11\ At least one of the contributing factors is the lack of
essential services--like broadband. This notion concerns Agriculture
Secretary Tom Vilsack who stated:
---------------------------------------------------------------------------
\11\ See USDA ERS Publication Rural America at a Glance, 2013
edition.
Unless we respond and react, the capacity of rural America
and its power and its reach will continue to decline. Rural
America, with a shrinking population, is becoming less and less
relevant to the politics of this country, and we better
recognize that, and we had better begin to reverse it.\12\
---------------------------------------------------------------------------
\12\ See http://bigstory.ap.org/article/usda-chief-rural-america-
becoming-less-relevant.
In conclusion, cooperatives like Midwest Energy are well suited to
build and maintain broadband networks. We have a wealth of experience
in building regulated utility networks. We aren't asking for a
preferential treatment, just an opportunity to compete. We do not seek
to exclude anyone from the conversation, but we do believe that a
narrow view of the solution may condemn our communities to the wrong
side of the digital divide. I want to repeat this last point: Midwest
advocates for an inclusive opening of opportunity to provide broadband
service to rural counties. The status quo approach is exclusive and
limits opportunity to those who have always received high cost support.
Given the current lack of broadband in rural areas, Midwest strongly
believes that if the Commission and Congress do not open the playing
field to competition, rural America may never have the chance to
experience the educational opportunities, employment prospects and
advanced healthcare that broadband delivers to those lucky enough to
live in low cost, high population centers.
Thank you for the opportunity to testify before this distinguished
Subcommittee. I welcome any questions you may have.
Exhibit A
Midwest Energy Cooperative
Executive Status Update Summary of Project Connect-Rural-Michigan
Midwest Energy Cooperative's (``Midwest'') board of directors has
charged senior management with developing a coalition of allies and
appropriate state and Federal officials to bring high-speed broadband
service to unserved and under-served portions of rural Michigan, in
part, by accessing Federal funding from the Connect America Fund
(``CAF'') and similar funding which, to date, have only been available
to more traditional incumbent entities who have declined to accept much
of the available funds as inconsistent with their business plan. The
result is that high-speed broadband service is today only available in
more populated areas--and large portions of rural America remain
unserved or under-served.
While Midwest's focus is on its service territory in rural
Michigan, its goal is to act as a catalyst to bring high-speed
broadband to unserved and under-served rural America. To date, Midwest
views its allies as including the Utilities Telecom Council (``UTC''),
United States Department of Agriculture--Rural Utilities Service
(``RUS''), the Michigan Electric Cooperative Association (``MECA''),
Michigan Public Service Commission (``MPSC''), the American Farm Bureau
Federation (``AFBF'') and other similarly situated rural electric
cooperatives throughout the country.
Midwest is proceeding with the deployment of a 243 mile fiber
communications ring through utility substations and facilities to
foster a smarter grid. Not only will this fiber ultimately help member
consumers manage their energy use, it will provide the critical
infrastructure required to support broadband deployment.
To date, Midwest has taken the following actions to bring high-
speed broadband to rural Michigan and rural America:
Power System Engineering (www.powersystem.org) was retained
in 2012 to assist in the necessary technical analyses
associated with our fiber communications ring; and Pulse
Broadband, Inc. (www.pulsebroadbandinc.com) was retained in
2013, along with a host of other contractors, to assist with
financial modeling, provisioning of services and deployment of
fiber-to-the-premises (``FTTx'');
Orjiakor lsiogu, former MPSC Chairman and former Chair of
the National Association of Regulatory Utility Commissioners
(``NARUC'') Taskforce on Federalism & Telecommunications, has
been retained to assist in necessary policy analyses and
licensing guidance;
The national law firm, Dykema (Albert Ernst and Shannon
Heim) has been retained to assist with legal input and
regulatory compliance;
Midwest's fiber communications ring represents a $9.5
million investment by the cooperative. Another $53 million is
required to deploy FTTx off that ring to rural un- and under-
served southwest Michigan. Midwest has now been advised by the
U.S. Department of Agriculture, Rural Utilities Services, that
electric loans can now be used to invest in fiber deployment to
the home, thus providing a low-cost matching source for CAF
application--assuming smart grid application. Still, access to
CAF will help expedite a solution for residents of Midwest's
rural service footprint;
With respect to advancing the notion that CAF be availed to
others, the Midwest team has met with senior representatives of
the RUS, NRECA, MECA, the MPSC, FCC, NARUC, Pokagon Band of
Potawatomi, AFBF and member organizations, and the Michigan
Governor's office in both Lansing, MI and Washington, D.C. We
have done this solely and in tandem with UTC and its Rural
Broadband Council (``RBC''), a group consisting of more than
100 of the nation's rural electric cooperatives;
Over the past year, Midwest and its allies have met several
times with FCC Commissioners and staff, their Office of
Strategic Planning, Wireline Bureau and IP Transitions Team;
Midwest and its partners have also met with key Members of
Congress as well as the United States Government Accountability
Office (GAO). The GAO has released a series of reports on rural
broadband deployment efforts based, in part, on discussions
with Midwest and others (http://www.gao.gov/products/GAO-14-
409);
On December 10, 2013, in coordinated filings, Midwest and
UTC requested that the FCC initiate proceedings which will
transition access to CAF funds to the country's rural electric
cooperatives and other entities serving rural America. On
January 30th, the FCC issued an Order that includes rural
experiments, inviting interested parties to file expressions of
interest (``EOI'') by March 7, 2014. On March 7, 2014, Midwest
filed an EOI to FCC along with over 100 rural electric
cooperatives. All total, 1,000+ EOIs were filed with the FCC.
The FCC will now evaluate the EOIs, set a budget for rural
experiments, provide application guidance, evaluate
applications and begin funding projects late third quarter;
On February 12h, 2014, Midwest and its partners secured a
resolution from NARUC supporting broader access to CAF by
utilities and other critical infrastructure industries;
Midwest received its permanent competitive local exchange
carrier (``CLEC'') license in March 2014 and a code of conduct
waiver from the MPSC in June 2014. Its application for an
eligible telecommunications carrier (``ETC'') license is in
process;
A soft launch of Midwest's full project is underway,
deploying roughly 21 miles of its communications ring through
two Midwest substations. In addition to assessment of smart
grid potential, Midwest is building 86 miles of fiber to 951
homes and businesses in the area. Even absent a strong
marketing push, our overall take rate is 26% thus far. Service
plans range from 25-100 Mbps down and 10-50 Mbps up for
residential and 25-100 Mbps of symmetrical service for
business. Midwest's service is scalable to a gigabit. Voice-
over-Internet Protocol (``VoIP'') will be provided by Big River
Telephone and video is being evaluated;
In June 2014, the FCC issued a Report and Order, Declaratory
Ruling, Order, Memorandum Opinion and Order, Seventh Order on
Reconsideration, and Further Notice of Proposed Rulemaking (WC
Docket No. 10-90), which should make it easier for utilities to
gain access to Federal funding for rural broadband under CAF;
and
On July 11, 2014, the FCC issued an Order detailing the
process by which entities may apply for a rural experiment.
Applications are due on October 14, 2014. We will be
participating in rural experiment workshops and plan to be
active in commenting on the FNPRM. Additionally, Midwest
intends to apply for rural experiment funding while continuing
to push for equal access to CAF going forward.
This Executive Status Update Summary will be updated periodically
to keep interested parties advised as to progress. Questions should be
directed to either Midwest President and Chief Executive Officer Bob
Hance at 269-445-1091 ([email protected]) or Midwest Vice
President, Regulatory Compliance and Community Development Dave Allen
at 269-445-1081 ([email protected]).
Exhibit B
Date: Monday, February 24, 2014
From: Robert L. Hance--President & CEO, Midwest Energy Cooperative
To: The Honorable Marlene Dortch--Secretary, Federal Communications
Commission
Subject: Expression of Interest--Midwest Energy Rural Broadband
Experiment, WC Docket No. 10-90
Background
Midwest Energy Cooperative is a member-owned electric utility
serving more than 35,000 residential, agricultural, commercial and
industrial customers in southwestern and southeastern Michigan,
northern Indiana and Ohio. We also provide propane services under the
name Midwest Propane and telecommunications services as Midwest
Connections. In the past, Midwest Connections has provided dial-up and
satellite Internet as well as broadband over power lines (BPL). We are
now fully committed to a next generation fiber solution as we have
found other platforms to be less-reliable and of insufficient capacity
and speed.
Midwest Energy is one of roughly 840 distribution cooperatives
across 47 states providing service to 42 million Americans and 18.5
million businesses, homes, schools, churches, farms, irrigation systems
and other establishments. As an industry, we own and maintain 42% of
the nation's distribution lines. That said, only 12% of Americans are
customers of ours. Whereas publicly owned utilities (municipals)
average 48 consumers per mile and investor-owned utilities average 34
customers per mile, electric cooperatives serve an average of 7.4
members per mile. These are the folks in need of a broadband solution.
Our Project
Plans to advance from automated meter reading (AMR) to the
deployment of automated metering infrastructure (AMI) provided us the
opportunity to explore a smarter grid for our members. In 2012, we
contracted with Power System Engineering, Inc. (www.powersystem.org) to
help us design and engineer a high-speed communications ring through
substations and facilities. The total cost of this 243 mile Midwest-
owned network is $9.5 million. Plans are in place to at least finance
the roughly $6 million portion of the ring that serves our southwest
district through an already-approved United States Department of
Agriculture--Rural Utilities Service (USDA-RUS) work plan loan.
Recognizing the significant potential of this asset, Midwest Energy
contracted with Pulse Broadband (www.pulsebroadbandinc.com) to help us
design a fiber-to-the-premises (FTTx) product. Utilizing the
communications ring as a middle mile backbone, Pulse Broadband designed
a portion of the 1,800 mile bi-directional FTTx open network using
gigabit passive optical network (GPON) electronics. At the appropriate
time, they will assist us in engineering the remainder of our network.
Midwest Energy's system is scalable, possessing the potential for a
gigabit of service to every home or business in our proposed footprint.
Initially, the following plans will be offered:
Residential High-Speed Internet PackagesBasic: Up to 20 Mbps downstream and 10 Mbps
upstream $49.95/month
Advanced: Up to 50 Mbps downstream and 20 Mbps
upstream $59.95/month
Ultra: Up to 100 Mbps downstream and 25 Mbps
upstream $99.95/month Business High-Speed Internet PackagesBasic: Up to 20 Mbps downstream and 20 Mbps
upstream $79.95/month
Advanced: Up to 50 Mbps downstream and 50 Mbps
upstream $129.95/month
Ultra: Up to 100 Mbps downstream and 50 Mbps
upstream $199.95/month
Unlimited Local and Long Distance Telephone within the U.S.,
Canada, Dominican Republic, Bahamas, U.S. Virgin Islands, Puerto Rico
and Guam. International calling plans and other features are also
available.
Residential: Includes three-way calling, caller ID
(number), call ID blocking, call
return, call forwarding, call
waiting and voice mail. $39.95/month
Business: Includes three-way calling, caller ID
(name and number), call forwarding,
hunting and voice mail. $49.95/month
Voice services will be provided through Big River Telephone
(www.bigrivertelephone.com) and video service is under consideration.
Midwest Energy will offer members a $10 double-play discount for
bundling their Internet and telephone services with us.
Midwest Energy serves neither cities nor villages in its proposed
service footprint. In these areas, incumbent Frontier (DSL) and Comcast
(cable) provide voice, data and video. Rural townships in southwest
Michigan are mostly devoid of anything other than satellite and Mobile
WiFi (MiFi). Bloomingdale Communications, a first and second round
stimulus recipient, has deployed fiber in the northern-most, and most-
dense, portion of our service area. Our discussions with them have
uncovered no plans to expand beyond their existing boundaries.
Timetable
Midwest Energy is ``shovel-ready'' with its project. We have
secured a temporary CLEC license from the Michigan Public Service
Commission and will pursue an ETC license and other certifications when
our permanent CLEC is granted in March. We have ``socialized'' our
intent with numerous state and Federal agencies and regulatory bodies
in an effort to be transparent and to learn what is necessary to
operate in this complex arena.
Already, Midwest Energy has deployed roughly 21 miles of our
communications ring through two substations serving areas adjacent to
both Schoolcraft and Edwardsburg, Michigan. In addition to assessment
of smart grid potential, Midwest is evaluating the FTTx potential of
laying 72 miles of fiber to 953 homes and businesses in the area. The
capital requirements for our soft launch are $4,367,452-$1,482,500 in
transmission costs and the balance in FTTx costs. Our first two
``beta'' customers are receiving service from Midwest Energy. One is
testing a 100 Mbps plan and the other is evaluating 20 Mbps.
Midwest Energy's soft launch project allows us to better gauge
member interest and service requirements before full deployment. Full
deployment may take up to 3 years, or more, depending upon the level of
support we receive from potential granting agencies. That said, when
our permanent CLEC license is secured, we plan to add new customers at
a planned, but much more aggressive, pace.
Project Area
Our full deployment area includes eligible portions of Cass, St.
Joseph, Kalamazoo, Van Buren and Berrien Counties in Michigan. In this
area, we estimate there are roughly 24,000 homes and 2,500 businesses.
Midwest Energy serves no cities or villages and instead focuses on
rural townships. As such, member density in this area is below nine per
mile. We believe there to be 80 critical community facilities and
public safety entities, made up of ten schools, seven libraries, 23
medical/healthcare providers, ten public safety entities, one community
college, five community support organizations and 24 governmental
facilities. Additionally, we have one Native American Tribe--The
Pokagon Band of Potawatomi. We are confident many of these entities
will provide project endorsement letters during the application phase
of FCC's rural experiments. One such letter from Mno-Bmadsen, the
Pokagon Band of Potawatomi's economic development arm, is attached as
an example of partnerships we are developing.
Southwest Michigan is defined by agriculture--particularly seed
corn production--and serves as a rural residential haven for those that
work and study at Notre Dame, Western Michigan University and area
community colleges. Additionally, those that work at Fortune 500
companies like Kellogg, Whirlpool and Pfizer tend to live in our
proposed service footprint. Though we were severely impacted by a
recent downturn in the recreational vehicle industry, efforts to foster
an entrepreneurial environment are bearing fruit and area unemployment
figures have moderated somewhat.
Midwest Energy's Midwest Connections intends to provide service to
an area encompassing portions of five counties in southwest Michigan
totaling 1,668.09 square miles. We will work closely with Pulse
Broadband to determine the eligibility of the 42 Census tracts, 169
Census block groups and 8,484 Census blocks within our proposed service
footprint.
Cass County, Michigan--490.06 square miles to be served
11 Census Tracts
46 Census Block Groups
2,319 Census Blocks
Berrien County, Michigan--138.98 square miles to be served
5 Census Tracts
20 Census Block Groups
789 Census Blocks
Kalamazoo County, Michigan--146.99 square miles to be served
8 Census Tracts
21 Census Block Groups
928 Census Blocks
St. Joseph County, Michigan--374.42 square miles to be served
7 Census Tracts
30 Census Block Groups
1,974 Census Blocks
Van Buren County, Michigan--517.64 square miles to be served
11 Census Tracts
52 Census Block Groups
2,474 Census Blocks
Project Need
Our service area--often referred to as ``Michiana'' is losing
population. While the volatile nature of the recreational vehicle
industry in nearby Indiana has created a home-based entrepreneurial
boom; many have chosen to leave southwest Michigan. Seniors are
flocking to where health care is abundantly available and the home-
bound have diminishing options in rural America. Workers are moving
closer to their employers. Young people are seeking entertainment
options and basic services like broadband. Parents, concerned for their
children's educational opportunities, are abandoning schools that are
limited in services they provide. Rather than placing further stress on
urban infrastructure, one solution might be to provide broadband where
it either doesn't exist or exists in limited scope. If workers can be
productive at home, that is good for America. If young people can
innovate, we all benefit. America's future truly depends on closing a
digital divide that exists on both a micro (urban versus rural) level
and a macro (U.S. versus the world) level as well.
Within Midwest Energy's proposed footprint, residents, schools,
libraries, farmers, first-responders, healthcare providers and the
Pokagon Band of Potawatomi are seeking an affordable, reliable and
high-speed option. This has provided us tremendous opportunity to
leverage our investment. For instance, USDA-RUS has stepped up to the
plate in helping us finance the cost of our communications ring. Merit
Networks, Inc., a nonprofit, member-owned organization formed in 1966
to design and implement a computer network between public universities
in Michigan, continues to seek a partnership with Midwest Energy. They
view us as being a catalyst in helping them reach schools and libraries
in the region. The Pokagon Band of Potawatomi's economic development
arm--Mno-Bmadsen--is evaluating partnership opportunities that can help
us extend service to their members and we're actively engaged with both
Michigan Farm Bureau and the American Farm Bureau to help bring
broadband to America's farmland. There is little scarcity in leveraging
opportunities for this project and we are exploring them all.
The Ask
Midwest Energy continues to refine its project requirements. As
mentioned, we are financing our communications ring for smart grid
applications through a USDA-RUS work plan loan. Should we fully deploy
our ring, the cost will be $9.5 million. It is $6.075 million if
construct communications in only our southwest district. Our FTTx
capital expenditure requirements are, roughly, $54.2 million. Given the
24,000 homes and 2,500 businesses passed, we will need approximately
$2,045 per passing to fully fund this project. That said, our financial
model continues to be refined and we'll have solid, defensible numbers
to present in our application. These numbers will be in the form of a
one-time capital expenditure. We are not seeking an ongoing subsidy
from the FCC. Midwest Energy will, of course, review FCC financial
models to ensure our numbers are both reasonable and appropriate.
In recent financial modeling, Midwest Energy assumed a 40% take
rate for residential and 30% take rate for commercial. This translates
into 10,350 customers. Applying standard price points for triple-play,
projected net income goes positive in year 4 at a fifty percent equity
injection. Midwest believes fifty percent equity funding is needed to
protect company asset-to-equity ratios. That said, we'll apply only for
what is eligible and what is required to be successful in providing up
to a gigabit of service for rural southwest Michigan.
Total Estimated Project Cost: $63.7 million
Midwest Energy Investment: $9.5 million
Ideal FCC Investment: $27.1 million (one-time capital
expenditure)
Additional Amount to be Financed: $27.1 million
Leveraging Opportunities: FCC Rural Experiment s (one-time
capital investment only)
Connect America Fund (unclaimed
CAF)
Merit Networks, Inc. (assistance
and dark fiber swap)
Lynx Network Group (dark fiber
swap)
Pokagon Band of Potawatomi
(financial)
Regional Economic Development
Groups (financial)
Michigan Farm Bureau & American
Farm Bureau (philosophical)
E-Rate Program (grant opportunity)
USDA Community Connect Program
(grant opportunity)
Total Customers Served: 26,500 (estimated--minimum)
Square Miles: 1,668.09 square miles
For More Information:
Mr. David H. Allen,
Vice President, Regulatory Compliance,
Midwest Energy.
(269) 445-1081 (direct).
[email protected].
Exhibit C
Co-ops Expressing Interest in FCC Rural Broadband Experiments
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
The Chairman. Thank you, Mr. Hance, and we move now to our
last panelist, Mr. Christopher Guttman-McCabe, Executive Vice
President, CTIA--The Wireless Association here in Washington.
Mr. Guttman-McCabe, you are recognized for 5 minutes.
STATEMENT OF CHRISTOPHER GUTTMAN-McCABE,
EXECUTIVE VICE PRESIDENT, CTIA--THE WIRELESS
ASSOCIATION, WASHINGTON, D.C.
Mr. Guttman-McCabe. Thank you, and good morning, Chairman
Crawford, Ranking Member Costa, and Congressman Thompson. I
appreciate the opportunity to participate in today's hearing.
My name is Christopher Guttman-McCabe, and I serve as
Executive Vice President at CTIA--The Wireless Association.
Today, American wireless users sit at the epicenter of the
wireless broadband revolution. Driven by vibrant competition,
massive investment, and successful light-touch regulation, the
U.S. wireless industry has deployed fourth-generation wireless
technology at a rapid pace and now offers this world-class
service to 95 percent of the American people. In fact, despite
being home to just five percent of the world's wireless
subscribers, the United States claims 45 percent of the world's
4G users.
As a result of the near ubiquitous deployment of 4G
technologies, a growing number of Americans have chosen to
abandon traditional telephone service and go wireless-only. In
fact, during the second 6 months of 2013, two in every five
U.S. households did not have a landline telephone but did have
at least one wireless telephone. And nowhere, Mr. Chairman, is
this more true than in Arkansas, where almost \1/2\ of the
adult population lives in wireless-only households.
Similarly, an estimated 45 million Americans use their
wireless device as their primary on-ramp to the Internet. As
wireless networks have become more ubiquitous, reliable, and
robust, they have become building blocks upon which other
segments of the economy rely to innovate and drive more
efficient outcomes in their respective fields. This is
certainly true in agriculture.
Whether through the use of GPS-assisted technology or
terrestrial wireless sensor technology, wireless is helping to
provide farmers with real-time feedback on a number of
different crop and site variables. This data helps to drive
increased efficiency and improve yields. Onboard telematics
powered by wireless guide farm equipment to reduce time in the
field and cut fuel costs while simultaneously reducing
maintenance costs and time lost to repairs.
Just as many of us rely on mobile apps to check a sports
score or bank balance, agricultural professionals are using
apps to perform a variety of tasks, including to access farm
and field information, check market prices, track cattle, and
even help consumers locate locally grown farm products.
Commercial wireless networks stand behind each of these
activities. Wireless is an increasingly important part of rural
communities and not only for those involved in agriculture.
Rural consumers and businesses of all sizes benefit from access
to competitive services and world-class devices as CTIA's
members invest to bring cutting-edge wireless service to rural
America.
While we are excited about helping U.S. agriculture and
rural America thrive, we are just scratching the surface of
what is possible. But building on these advances requires the
right policies here in Washington. America's farmers may not
know that they care about the intricacies of spectrum
allocation, the challenges of tower siting, or the impact of
FCC regulation, but they do. This is true because the ability
to deliver the sorts of services on which the farming and
agriculture community is relying depends on the wireless
industry having access to spectrum and the ability to build the
networks needed to put it to use, without the burdens of
unnecessary regulation.
Spectrum is the key input into the wireless business. For
us, it is the oxygen that fuels everything else. For this
reason, ensuring that a sufficient, predictable supply of
spectrum for commercial use is at the top of CTIA's agenda.
Thanks to Congress' work in the 2012 Middle Class Tax Relief
and Job Creation Act, there are two upcoming auctions that will
bring additional spectrum to market for CTIA's members.
Congress must encourage the FCC to do everything necessary
to ensure that these critical auctions are successful and on
schedule.
Once spectrum has been auctioned, it must be put to work.
That means that networks must be deployed. To facilitate this,
the FCC must complete work on its wireless infrastructure
proceeding which is flowing from the 2012 law that authorized
the auctions.
Finally, policymakers must continue to support a light-
touch regulatory regime for wireless. Wireless is different
than the other communications and broadband technologies.
Wireless has benefited from a comparative lack of regulation
over the last 20 years, and the results validate the efficacy
of this approach. Our world-leading environment is no accident.
Regulators thus should not try to prejudge how the wireless
industry will evolve or impose upon it rules designed for
wireline networks in a monopoly environment. Similarly,
policymakers should not bias the FCC's Universal Service
Programs or the Rural Utilities Service Loan Programs in favor
of any particular technology. Consumer preference, not
government fiat, should guide network deployment decisions.
Thank you again for the opportunity to participate in
today's hearing. I look forward to working with the
Subcommittee to advance the deployment of wireless service
across all of America. Thank you.
[The prepared statement of Mr. Guttman-McCabe follows:]
Prepared Statement of Christopher Guttman-McCabe, Executive Vice
President, CTIA--The Wireless Association, Washington, D.C.
Chairman Crawford, Ranking Member Costa, and Members of the
Subcommittee, thank you for the opportunity to participate in today's
hearing. My name is Christopher Guttman-McCabe and I serve as Executive
Vice President at CTIA--The Wireless Association'. CTIA
represents the wireless carriers, equipment vendors, and software and
content developers that drive America's global leadership in wireless
broadband.
Today, American wireless users sit at the epicenter of the wireless
broadband revolution. Driven by vibrant competition, massive
investment,\1\ and successful light-touch regulation, the U.S. wireless
industry has deployed 4G LTE technology at a rapid pace and now offers
this world-class wireless broadband service to 95 percent of the
American people. In fact, despite being home to just five percent of
the world's wireless subscribers, the U.S. claims 45 percent of the
world's 4G users.\2\
---------------------------------------------------------------------------
\1\ In 2013, U.S. wireless carriers invested approximately $34
billion in their networks. See CTIA, U.S. Invests Four Times More in
Networks (March 13, 2014), available at http://www.ctia.org/resource-
library/facts-and- infographics/archive/us-investment-networks (``CTIA
March 2013 Wireless Facts'') (citing Didier Scemama, et al., 2014
Wireless Capex: BRICs & Europe to Pick Up the Slack, Bank of America
Merrill Lynch, Global Telecom Equipment, at Table 2 (Jan. 13, 2014);
Glen Campbell, 2014: The Year Ahead, Bank of America Merrill Lynch,
Global Wireless Matrix 4Q13, at Tables 1 and 2 (Jan. 8, 2014) (``Global
Wireless Matrix'').
\2\ According to the Informa Telecoms & Media Group's WCIS
database, the U.S. and its territories accounted for 45% of global LTE
subscribers as of the first quarter of 2014. The United States is home
to 112 million LTE subscribers, while the next nine countries combined
are home to 111 million.
---------------------------------------------------------------------------
As a result of the near ubiquitous deployment of 3G and now 4G
technologies and the convenience of wireless networks, a growing number
of Americans have chosen to abandon traditional telephone service and
go ``wireless-only.'' In fact, the Centers for Disease Control's
National Health Interview Survey recently released data finding that
for the second 6 months of 2013, two in every five households (41.0%)
did not have a landline telephone but did have at least one wireless
telephone.\3\ And nowhere, Mr. Chairman, is this phenomenon more true
than in Arkansas, where almost 50 percent of the adult population lives
in a ``wireless-only'' household.\4\ Similarly, an estimated 45 million
Americans use their wireless device as their primary on-ramp to the
Internet.\5\
---------------------------------------------------------------------------
\3\ http://www.cdc.gov/nchs/data/nhis/earlyrelease/
wireless201407.pdf, at Table 1.
\4\ http://www.cdc.gov/nchs/data/nhsr/nhsr070.pdf, at 5, column 2,
showing data for Jan.-Dec. 2012, with Arkansas at 49.0 percent.
\5\ Maeve Duggan and Aaron Smith, ``Cell Internet Use 2013,'' Sept.
2013, Pew Research Center, at http://www.pewinternet.org/files/old-
media/ /Files/Reports/2013/PIP_CellInternetUse
2013.pdf, and U.S. Census, American FactFinder, at http://
factfinder2.census.gov/faces/ tableservices/jsf/pages/
productview.xhtml?src=bkmk.
---------------------------------------------------------------------------
As wireless networks have become more ubiquitous, reliable, and
robust, they have become platforms not only for telephone service and
Internet access, but also building blocks upon which other segments of
the economy rely to innovate and drive more efficient outcomes in their
respective fields. This is certainly true in agriculture.
Whether through the use of GPS-assisted technology or terrestrial
wireless sensor technology, wireless is helping to provider farmers
with real time feed-back on a number of different crop and site
variables.\6\ This data helps to drive increased efficiency and improve
yields.\7\ Onboard telematics powered by commercial wireless broadband
networks guide farm equipment to reduce time in the field and cut fuel
costs, while simultaneously reducing maintenance costs and time lost to
repairs.\8\ And just as many of us rely on mobile apps to check a
sports score or bank balance, agricultural professionals are using apps
to perform a variety of tasks, including to access farm and field
information, check market prices, track cattle, and even help consumers
locate locally grown farm products and farmers markets.\9\ Commercial
wireless broadband networks stand behind each of these activities.
---------------------------------------------------------------------------
\6\ https://www.youtube.com/watch?v=pldvLV0xjmg, and http://
sourcetech411.com/2013/06/the-use-of-wireless-sensor-networks-in-
precision-agriculture/.
\7\ http://www.businessinsider.com/sc/wireless-farming-is-helping-
feed-the-world-2014-7.
\8\ https://www.youtube.com/watch?v=YbYjUH2uKXQ.
\9\ http://www.farmmanagement.pro/mobile-agriculture-apps-offered-
in-2013/, http://www.ag
web.com/article/nutrient_deficiency_app_available/, http://
eprretailnews.com/2014/07/09/morrisons-became-the-first-supermarket-to-
launch-free-app-for-cattle-farmers-aimed-at-simplifying-livestock-
management-09987654321232345456/ and http://www.picktnproducts.org/.
---------------------------------------------------------------------------
Wireless is an increasingly important part of rural communities,
and not only for those involved in agriculture. Rural consumers and
businesses of all sizes benefit from access to competitive services and
world-class devices. CTIA's carrier members, large and small, are
investing to bring cutting-edge wireless service to rural communities.
In addition to the widespread deployment of LTE described above, these
initiatives include AT&T's planned deployment of fixed wireless service
that uses advanced technology, dedicated spectrum, and professional
home installations to provide a consistent and reliable high-speed
broadband experience,\10\ and efforts by smaller carriers like
Bluegrass Cellular in Kentucky to deploy its wireless Internet
GetSetGoTM branded broadband product and services \11\ to
markets like Clarksville, Tennessee and Hopkinsville, Owensboro,
Danville and Richmond, Kentucky, and CellCom of Green Bay, Wisconsin
working to make wireless telehealth solutions for diabetics available
across Wisconsin.\12\
---------------------------------------------------------------------------
\10\ Statement of John T. Stankey, Group President and Chief
Strategy Officer, AT&T, before the Senate Commerce Committee, July 16,
2014. Available at http://www.commerce.senate.gov/public/
?a=Files.Serve&File_id=d2db74ae-73d4-4116-8d2f-25def1182f14, at 4. The
referenced deployment is predicated on regulatory approval of AT&T's
proposed acquisition of DIRECTV, a transaction on which CTIA takes no
position.
\11\ The GetSetGoTM wireless Internet service initial
product offering uses an LTE WiFi router that integrates WiFi 802.11 b/
g/n and Ethernet ports in an easy and simple-to-use package. The
company projects that GetSetGo customers will experience download
speeds of 5 to 12 Mbps and 2 to 5 Mbps for uploading data.
\12\ http://www.nsightnews.com/Press-Releases/cellcom-partners-
with-telcare-to-offer-diabetes-management-solution.html.
---------------------------------------------------------------------------
While we're excited about the contributions the wireless industry
can make to helping U.S. agriculture and rural America thrive, we're
just scratching the surface of what's possible. But building on these
advances requires the right policies here in Washington. America's
farmers may not know that they care about the intricacies of spectrum
allocation, the challenges of tower siting, or the impact of FCC
regulation, but they do. This is true because the ability to deliver
the sort of services on which the farming community is relying and will
continue to rely is dependent on the wireless industry having access to
spectrum, and the ability to build the networks needed to put it to
use, without the burden of unnecessary constraint or cost imposed
through the regulatory process.
Spectrum is the key input into the wireless business. For us, it is
the oxygen that fuels everything else. For this reason, ensuring that
there is a sufficient, predictable supply of spectrum for commercial
use is at the top of CTIA's agenda. Thanks to Congress' work in the
2012 Middle Class Tax Relief and Job Creation Act, there are two
upcoming auctions that will bring additional spectrum to market for
CTIA's members.\13\ These auctions are critical to meeting the
burgeoning demand for wireless broadband, which Ericsson \14\ and Cisco
\15\ suggest will continue, and to maintaining the United States'
position as the world's leader in advanced wireless services. Congress
therefore must encourage the Federal Communications Commission to do
everything necessary to ensure that these auctions are successful and
on schedule.
---------------------------------------------------------------------------
\13\ These include the AWS-3 auction scheduled for late 2014 and
the broadcast incentive auction scheduled for mid-2015.
\14\ Ericsson, Ericsson Mobility Report on the Pulse of the
Networked Society, Interim Report (Feb. 2014), available at http://
www.ericsson.com/res/docs/2014/ericsson-mobility-report-february-2014-
interim.pdf and [Editor's note: this footnote was incomplete as
submitted].
\15\ Cisco, Cisco Visual Networking Index: Global Mobile Data
Traffic Forecast Update, 2013-2018, at 10 (Feb. 5, 2014) (``Cisco
Report''), available at http://www.cisco.com/c/en/us/solutions/
collateral/service-provider/visual-networking-index-vni/
white_paper_c11-520862.pdf.
---------------------------------------------------------------------------
Once spectrum has been auctioned, it must be put to work. That
means that networks must be deployed. To facilitate the deployment of
wireless network infrastructure, industry needs a predictable,
expedited process for seeking siting approvals. This is true for the
construction of towers, as well as for the process of deploying
antennae on existing towers or structures and for the use of small cell
technologies. New cell sites can expand the available coverage area for
consumers, and increase a network's ability to provide the kinds of
services consumers want and expect. To support these efforts, the
Federal Communications Commission must complete work on its Wireless
Infrastructure proceeding,\16\ which flowed from the 2012 law
authorizing the auctions. Additionally, because towers have to connect
to the larger network, Congress and the Federal Communications
Commission must continue to work to remove barriers to the deployment
of fiber infrastructure.
---------------------------------------------------------------------------
\16\ Acceleration of Broadband Deployment by Improving Wireless
Facilities Siting Policies, WT Docket No. 13-238.
---------------------------------------------------------------------------
Finally, with the right spectrum and siting policies in place,
policymakers must continue to support a light-touch regulatory regime
for wireless. Wireless has benefited from a comparative lack of
regulation over the last twenty years, and the resulting deployment and
consistent technological advancement validate the efficacy of this
approach. Regulators thus should not try to prejudge how the wireless
industry will evolve or impose upon it rules designed for wireline
networks in a monopoly environment.\17\ Similarly, policymakers should
not bias the FCC's Universal Service programs or the Rural Utilities
Service loan programs in favor of any particular technology. Consumer
preference, not government fiat, should guide network deployment
decisions. Vibrant competition and regulatory humility will produce the
best outcomes for consumers.
---------------------------------------------------------------------------
\17\ http://www.ctia.org/docs/default-source/fcc-filings/140718-
ctia-open-internet-comments.pdf?sfvrsn=0.
---------------------------------------------------------------------------
Thank you again for the opportunity to participate in today's
hearing. CTIA looks forward to working with the Subcommittee to advance
the deployment of wireless service across all of America.
The Chairman. Thank you, Mr. Guttman-McCabe, and we will
start our round of questioning. I first recognize myself for 5
minutes. Let me start with Mr. Zimmerman.
In your view, are the various agencies such as USDA and the
FCC coordinating sufficiently in their efforts and in such a
way that might result in a comprehensive and effective plan for
the deployment of broadband in rural America?
Mr. Zimmerman. I missed the first part of your question.
What was that again?
The Chairman. Do you believe that the agencies such as USDA
and FCC are coordinating sufficiently in their efforts----
Mr. Zimmerman. Okay. I can't say how the agencies work back
and forth. The one thing I do know is that the RUS is making
things that will help us as far as loan programs to make the
availability of more broadband, but the regulation that we have
on the FCC side makes it very hard for us to plan and take on
these loans because we are afraid of not being able to pay
them.
The rate floor in particular, jumping to $20.46 while my
local rates are $14, that would be almost a 50 percent rate
increase that they wanted us to do within a 3 month--they gave
us 3 months to get it done. That is just unreasonable for
people to have to get done. It makes it harder for us to keep
people on the network if they keep jacking up the rates that
the people have to pay to be on the network, and it is for a
voice service that a lot of them don't want and makes the
broadband fees higher and higher and unaffordable in rural
areas where they are trying to expand it more.
So that is sort of the side we have been having trouble
with.
The Chairman. Okay. And I have heard this before, so
basically there is a template for--that doesn't allow the
consumer to make the choice between broadband and voice, that
they just kind of are packaged up together, is that correct?
Mr. Zimmerman. That is right. They make the Universal
Service support to the company based on the voice side only,
not the broadband. And people have gone, the voice has gone to
wireless if it is available. And it is not available in all
areas as we know, but if it is, that is where the voice traffic
has migrated to, to tie the support to these rural areas to get
broadband to voice is just an antiquated part of the system,
and it is a detriment because people will not pay the added
expense of having a telephone line. They don't want it, and in
most places they don't need it.
The Chairman. Okay. Thank you. Mr. Cohen, your testimony
highlighted the differences in large and small telecom
providers and mentioned several of the FCC reforms which impact
them separately. Do you feel that the FCC is sufficiently
taking into account the impact on smaller providers?
Mr. Cohen. The FCC is taking into account the impact on
small providers, but unfortunately, their timing is behind that
of the impact on large providers so that there is a Universal
Service mechanism designed and implemented for the large
providers. As I mentioned in my testimony, at the beginning of
2015, they will be able to elect whether to receive CAF II
funding. After that the remaining CAF II funding in the areas
not elected will be open to all comers.
On the small-company side, the small companies, as Mr.
Zimmerman mentioned, are still dealing with the Universal
Service mechanism that was made and designed for the voice era,
and now we are in the broadband era. And so the FCC needs to
both address the issue of broadband-only lines, as Mr.
Zimmerman pointed out, and ensure that they receive support but
also modernize the Universal Service program for small
companies so that he can have a predictable source of revenue
from Universal Service which will enable them to plan, borrow
from RUS and other lenders, and invest in broadband to extend
and improve the availability of that service in rural America.
The Chairman. Thank you, Mr. Cohen. Mr. Hance, your
cooperative and others like it pretty much are the tip of the
spear in broadband, and that is kind of how you want to lead
the charge. How do you choose which areas make the most sense
for you to serve?
Mr. Hance. The best way to answer that question is to say
each of the co-ops are taking their own projects under their
own advisement, and the way most of us are approaching it and
not speaking for everyone is trying to concentrate on those
areas where we have the highest concentration of meters. It is
hard to say in the landscape that we serve. We, at our system,
serve about nine members per mile line. In our most dense areas
it might be up towards 15. So we concentrate on those areas
where we have the best opportunity to get the most dense first,
with the idea that we will reach out to all of our members
eventually.
The Chairman. Thank you. Mr. Guttman-McCabe, you mentioned
the shift away from landline subscriptions to wireless
solutions. Can you talk a little bit more about how the
wireless and backhaul networks are connected and what it takes
to expand both wireline and wireless coverage?
Mr. Guttman-McCabe. Certainly, Mr. Chairman, and at the
core of my testimony is the notion that the country is evolving
pretty significantly as we speak. More and more people are
moving to wireless only. More and more people are using
wireless as their access point to the Internet. We are hearing
more stories about mHealth, mobile health and mobile education,
and part of our concern is that we are not entirely sure that
the government programs are aware or at least take into
consideration this evolution. At the same time that the FCC is
reforming its USF fund, its Universal Service Fund, it is
significantly reducing the amount of money that goes to mobile
broadband. And for us, yes, there certainly is an integration
between the use of mobile broadband and backhaul, but we
believe that whether it is the RUS programs or the Connect
America Fund Phase II that there needs to be some technology
neutrality that allows consumers in essence to make the choice.
If there is enough need or desire in an unserved market for
wireless service, then the providers in those areas should be
able to get access to these funds, particularly as we see this
evolution. I am fearful that we are going to continue to miss
what is becoming just such a tremendous tidal wave of change in
the United States towards mobile use. Mobile broadband doubled
in size for the fourth year in a row, mobile broadband usage,
the amount of megabits of usage and it is sort of outpacing all
the predictions of 5 years ago of where it was going to be. And
I am fearful that some of the programs that we are talking
about today, whether it is the RUS Loan Program or the Connect
America Fund Phase II or even the Mobility Fund where the
Commission is contemplating taking a mobility fund that went
from north of a billion down to $500 million. They are
contemplating reducing that even further. And I am sure you
have areas, particularly road miles in your districts, that
aren't served that could use some--the carriers in those areas
could use some support. Our carriers are working hard to get
their large and small markets, but having a technology-neutral
program, set-up programs, would really help to facilitate both
again the intersection of broadband backhaul from the wired
constituents as well as wireless broadband service from my
constituents.
The Chairman. Thank you. I now recognize the Ranking Member
for 5 minutes.
Mr. Costa. Yes. Thank you, Mr. Chairman. Mr. Guttman-
McCabe, I listened carefully to your final comments, sir. Are
you saying that you think that the Connect America Fund creates
an unlevel playing field as it relates to----
Mr. Guttman-McCabe. Certainly at least as it is being
considered. There are some concerns we have with some of either
the latency requirements or the requirements on the size or the
amount of capacity that a company that receives the funds has
to deliver that doesn't recognize the technology differences
with a mobile network.
Mr. Costa. And you can substantiate that?
Mr. Guttman-McCabe. Well, I mean, certainly we have put on
the record some of those concerns, and again, we are putting
them on again on the record very soon.
Mr. Costa. Mr. Cohen, can you clarify what you think you
believe that the Connect America Fund should play in providing
subsidies for broadband as we try to expand deployment
throughout rural America?
Mr. Cohen. Yes, the Connect America Fund is designed to
provide support for areas that make no economic sense without
some support. Congress has indicated to the FCC that they
wanted the budget for that fund unlimited. The FCC limited that
budget to $4.5 billion per year. The FCC is very carefully
allocating those funds. They are ensuring that they go to
provide the type of services that----
Mr. Costa. And so your assessment, how do you think that is
all working?
Mr. Cohen. Well, right now we are still in the
implementation stage of the portion of the fund for price-cap
areas, and that is moving along, and we will see over the next
12 months how CAF II is implemented which will provide that
election for the price-cap carriers and then the subsequent
auction. The areas served by----
Mr. Costa. So a lot of time----
Mr. Cohen.--the small companies, the rate-of-return
carriers, unfortunately the Connect America Fund has not really
been designed for them for broadband.
Mr. Costa. And so then you think that is a gap?
Mr. Cohen. Absolutely. The FCC needs to promptly move along
and support broadband-only lines and develop a predictable
broadband-oriented program for small companies.
Mr. Costa. And you talked a lot about in your testimony the
price-cap carriers----
Mr. Cohen. Yes.
Mr. Costa.--and how it is across the country impacting on a
state-by-state basis. So if a state's service area goes to an
auction process, this can pretty much go to any geographical
area?
Mr. Cohen. Yes. The price-cap carrier in a particular state
presumably by the end of the year, which the FCC has indicated
that is their schedule----
Mr. Costa. Are you concerned that there may be cherry-
picking as a result of that?
Mr. Cohen. Well, no. The price-cap companies will be
offered an election to elect the state as a whole their entire
service area in a state to receive support. If they decide not
to elect that funding, that area is opened up to an auction,
and various providers of any sort can bid to provide service in
particular areas in the state.
Mr. Costa. Do you think the FCC should reconsider how Phase
II should work and whether or not those who are participating
in the right of first refusal or whether or not that should be
skipped altogether?
Mr. Cohen. The FCC made the considered decision to
accelerate broadband to rural consumers who have waited in many
instances a very long time for it by providing for the right of
first refusal which allows the price-cap carriers that have
facilities in these rural areas to add onto those facilities
and improve those facilities to be able to provide broadband.
But they also provided a competitive opportunity for others in
areas where the price-cap companies do not elect to accept the
CAF II money and the obligations to anybody else to apply in
the auction, to bid in the auction.
Mr. Costa. Do you think the FCC has dragged its feet in
this area? I hear it has taken over 3 years.
Mr. Cohen. Certainly the process has taken longer than
anybody, including the FCC, has anticipated. But it appears
that we are now reaching the conclusion of the process, and
money should be flowing next year.
Mr. Costa. So are you hopeful?
Mr. Cohen. I am very hopeful that the Commission will
continue their prompt implementation of the CAF II Program, and
rural consumers will soon be receiving the benefits of
broadband service.
Mr. Costa. The ultimate goal, universal broadband?
Mr. Cohen. Absolutely.
Mr. Costa. Thank you.
The Chairman. I thank the gentleman. Now I recognize the
gentleman from Pennsylvania for 5 minutes. Mr. Thompson, you
are recognized.
Mr. Thompson. Mr. Chairman, thank you so much. Thanks for
putting this Subcommittee hearing together, incredibly
important issue. Recently I had the opportunity to be with a
group, a coalition of folks who, every 2 years, publish the Why
Rural Matters study, it is just a great study. And it was
interesting to see the fact that we are actually growing the
number of youth in rural American with this last biannual
report. They have been doing it for some time now, about 13
years or more. But this past report that covers the past 2
years shows rural youth increasing proportionately higher than
in urban America. And between that and the economic impact, I
mean, the importance of this hearing is so significant,
obviously, providing access to broadband. To all four of the
witnesses, thank you, gentlemen, for your respective areas of
leadership and expertise.
I want to start with Mr. Zimmerman. In your testimony, you
at one point discussed how rural telecom has been at the
forefront of innovation, specifically in terms of converting to
digital systems and now to wireless networks. With technology
costs evolving so quickly, what kinds of impacts, either
challenges or benefits, has this continued technological
innovation had on rural access, development, and infrastructure
and also any thoughts on what we may see for future
innovations?
Mr. Zimmerman. Yes, sir. One of the big changes is to be
able to get the increasing levels of broadband out to the rural
areas. We have been able to get DSL speeds which is basically
1.5 Meg to 98 percent of our territory. That is increasingly
being seen as not enough or insufficient, and one of the things
that we struggle with is to be able to upgrade these networks.
And one of the bottlenecks have been we are geographically
isolated, and the way to get to the backbone of the Internet
has basically been through larger carriers such as AT&T or
Century to get traffic out of those rural areas to the
backbone, and a lot of times we had trouble getting the
capacity we needed. So we have gone out on our own with the
help of RUS to build some fiber networks of our own so we could
connect to the backbone ourselves. So that has been one of the
best things that we have been able to get done and one of the
things we continue to work on to expand the capacity because
the needs keep going up.
Mr. Thompson. I know it is a crystal ball, but innovation
continues, obviously in particular this area. I open up this
question to the panel. Any thoughts of what innovations we may
see next coming out that will help to increase cost-effective
access?
Mr. Guttman-McCabe. Well, I guess I will dive first,
Congressman. You know, we are seeing deployment of LTE which is
our fourth-generation technology happening at a rate that far
surpasses the other evolution or introductions of our
technologies. And what that is doing is opening up the doors to
a range of services that I don't think any of us could
contemplate. I wrote a law review article on telemedicine 18
years ago. I wouldn't have guessed that most of the evolution
in telemedicine would be in mobile health and that some of the
technologies to deal with long-term health problems would be
happening in rural areas.
One of our rural providers, one of our regional providers
serves through Wisconsin and some of the really rural areas in
there, and they are one of the leaders on putting together
mobile health solutions for diabetics.
So we are seeing these sort of capabilities that are
flowing from next-generation technologies, next-generation
networks that we couldn't have thought, whether it is--I did a
search on apps for agriculture, and I just saw the top 14 apps
of 2014 and it is pretty staggering what those apps can do.
And so whether it is across agriculture or education or
mobile health or banking, I mean, this sort of can go on and
on. The things that are happening in the mobile broadband space
are really life-altering and pretty staggering considering
where we were 5 years ago.
Mr. Thompson. And just to follow-up to one of your
testimony, you had stated in your testimony--because consumer
preference, not government fiat should guide the network
deployment decisions. You know, what actions do you think
just--we are just about out of time--what actions do you think
should be taken to ensure that we allow the markets to work
their will?
Mr. Guttman-McCabe. If we look at USF as an example,
setting a framework or parameters that don't out of the gate
foreclose mobile access would be key. So if you choose latency
or sort of the total capability in terms of the amount of
megabits that can be delivered in a month and those are not
capable on wireless networks, you foreclosed wireless
providers, large, small, urban, rural, from getting access to
those funds. That is a simple one, recognizing that wireless is
different, that there are significant benefits to the ability
to have mobility, benefits to having greater capacity and
greater throughput of a landline service as well, but there are
real benefits to mobility and consumers are making that choice
all the time.
Mr. Thompson. Thank you. Thank you, Mr. Chairman.
The Chairman. The gentleman's time has expired. I thank the
gentleman, and I recognize the gentlelady from New Mexico, Ms.
Lujan Grisham for 5 minutes.
Ms. Lujan Grisham. Thank you, Mr. Chairman. Good morning,
everyone. Mr. Zimmerman, as a representative from a very rural
state, I certainly understand the challenges in providing
services to rural areas, and I experienced these firsthand. My
notes say Secretary of Health, but I served in state government
for 17 years and was responsible for aging and disability
services and then also all of the public health services. And
part of the problem in getting out our direct services and
providing access was certainly making sure that we had
broadband Internet access, and it is something that rural and
frontier states still really struggle with today. And I am just
going to sort of give you some facts. We know that 77 percent
of rural counties face a serious shortage of health
professionals and an even greater shortage of medical
specialists. This means that 51 million Americans that live in
rural America must travel greater distances, face longer waits,
and usually spend more money than people in urban areas for the
same care.
So in New Mexico, to combat this trend, a gentleman by the
name of Dr. Sanjeev Aurora, a professor at the University of
New Mexico, created a project, a program called ECHO, and it
stands for the Extension for Community Health Outcomes. And
what it does is it provides specialty care to rural residents
by connecting their primary care docs with specialists. In this
way folks with very specific and significant disease issues can
get access using telehealth or telemedicine.
Now it was created in 2003. Since then it has expanded to
more than 30 universities across the country, and it currently
provides assistance to thousands of clinics all over the world.
But it is continuing to provide directly--its impact is focused
in New Mexico, this model. The problem is, it is still, after
2003, there are several areas that we cannot reach. We don't
have the broadband needed to attach a project or a program like
ECHO to, say, Indian Country or the most remote rural
communities.
Higher broadband speeds are needed for telemedicine, as you
know, because, two things. Only 51 percent of the population
has access to broadband download speeds of at least 25 Megabits
as compared to 94 percent of the urban population. But frankly,
more importantly, in telemedicine, if you don't have broadband,
you cannot view most of the diagnostics that are really
enhanced and needed in order to have that relationship between
your medical practitioners between a rural and frontier area
and your urban area where you are connecting the health
professionals for the benefit of the rural patient.
How can policymakers better support small, rural providers
in not only deploying broadband in rural communities but also
making sure that that service can support projects like the one
I described to you, New Mexico ECHO, and telemedicine in a
broader fashion?
Mr. Zimmerman. Well, one of the oddities of this whole
process was that many of the rate-of-return carriers like
myself were able to get a high level of coverage at a basic
speed like I mentioned earlier before of 1.5, and then when the
2011 Order came out, the talk was that the urban areas should
have 100 meg up and 100 down and that the rural areas should
only be able to do 4 meg down and 1 meg up. And that was just a
terrible thing to tell people in the rural areas, that you
should be happy with what you have now but the urban areas are
going to get the big, fast speeds. And that has been a big
issue for us all along, that small companies have done a good
job of getting some basic coverage out there to which we
continue to beef up, and it seems like the regulation going on
now is more towards the price-cap carriers to let them get some
areas that are not covered caught up with. But we don't think
areas like rural New Mexico where my aunt lives in Ruidoso or
Arkansas, where I live, should be left out----
Ms. Lujan Grisham. Ruidoso is a big city, sir, big, huge
city.
Mr. Zimmerman. Big city?
Ms. Lujan Grisham. Yes, sir.
Mr. Zimmerman. Well, my other aunt lives in Artesia. That
is a little bit smaller.
Ms. Lujan Grisham. I don't know. Until you have been to
Huerfano or Pie Town, I am not sure. You are still talking
about big cities.
Mr. Zimmerman. Okay. Okay. Well, I thought I had a shot
there.
Ms. Lujan Grisham. And I appreciate that, but where I am
struggling, Mr. Chairman, and with the panel--I appreciate
everyone's presence today--is that what we are currently using
isn't enough to incentivize and develop broadband high-speed
access in the places that we really need it. And without it,
not only are we not investing appropriately in the ag community
but broader in things like--and we are spending those and
paying for those in USDA, appropriations and grants--but
telemedicine can't be connected where we want it to because it
can only do the counseling services, Mr. Chairman. It can't do
the diagnostic aspects unless we find a way to have broad-based
coverage.
I really challenge us to find those appropriate incentives
and balances to make this really accessible across the country.
The Chairman. I thank the gentlelady.
Ms. Lujan Grisham. I yield back.
The Chairman. And the gentlelady yields. I am pleased to
recognize the gentleman from Alabama, Mr. Rogers, for 5
minutes.
Mr. Rogers. Thank you, Mr. Chairman. Mr. Zimmerman, you
indicated in your earlier testimony that you are currently
using 10 Gigabyte network. In the recent farm bill, a provision
was included to create a pilot program to accomplish that same
goal. Do you still think we need that pilot program to go
forward?
Mr. Zimmerman. Absolutely.
Mr. Rogers. Also under the Recovery--tell me why.
Mr. Zimmerman. Well, I think that is where the backbone
needs to be. We have big areas of Arkansas that need to be
connected that have been connected through a B Top Grant to
connect the 4 year and 2 year colleges and the health centers,
and that is where the 10 gigabyte network is to connect the big
data centers.
As far as getting out into rural mom-and-pop homes, we
don't need 10 gigabytes out there whatsoever. But to be able to
get these isolated parts of Arkansas or perhaps Alabama, to get
them the network capacity to feed the entire neighborhood or
the entire district, you need to have a big pipe going out of
there that needs to be able to have that capacity.
Mr. Rogers. I like that perhaps Alabama part.
Mr. Zimmerman. Perhaps. Not necessarily.
Mr. Rogers. I think it should be Alabama, perhaps Arkansas.
That would be good.
Mr. Zimmerman. Okay.
Mr. Rogers. In the Recovery Act, USDA obligated $3.4
billion at a rate of over $17,000 per line. Can you share your
experiences expanding networks and how that basic average
compares to the cost you have faced connecting these networks?
Mr. Zimmerman. What was the top number you had?
Mr. Rogers. It was $3.4 billion.
Mr. Zimmerman. No, I meant per line.
Mr. Rogers. It was $17,000 per line.
Mr. Zimmerman. Okay. That must be in rural Alaska somewhere
because that is really, really high. Obviously the cost to
maintain what is called the local loop from our office to
somewhere way out in the county is going to be high. In
Arkansas, probably in the $80 to $150 per loop cost, and again,
we have rates of about $14. People would never pay that kind of
rate to pay $80 to $130. So it has always been--there has been
support to make the rural customers have comparable services at
comparable rates, and that has been in the law since the
Communications Act of 1934. So it is very important.
Mr. Rogers. Well, talking about making these connections,
geographic challenges such as hard soil and rough terrain can
inhibit the build-out of these networks. How do you overcome
those in your experience?
Mr. Zimmerman. Rock hammers.
Mr. Rogers. What was that?
Mr. Zimmerman. Rock hammers. If when we put in fiber, we
don't want to put it up in the air because we have tornados, we
have ice storms, and utilities up in the air are very, very
vulnerable to weather. So we have gone in and buried these
fibers. In north Arkansas, the rock is about 6" to 18" above
the surface, and you have to rock tile that thing in and it is
a very expensive project to do.
Mr. Rogers. How hard is it to maintain given that
difficulty?
Mr. Zimmerman. Luckily being buried and put in conduit, it
is pretty protected there. And we have networks that we can
trace where the problem is if something gets cut. We had a
funny thing happen in Mountain View, Arkansas. A farmer had a
dog die. Took his backhoe out to bury the dog, cut our fiber,
and we couldn't find where it was. And you have those kind of
strange things happen to buried fiber, but it is not as
vulnerable as something up in the air.
Mr. Rogers. He really wanted to bury that dog if he had to
use a rock hammer.
Mr. Zimmerman. That is right.
Mr. Rogers. Thank you, Mr. Chairman. I yield back.
The Chairman. I thank the gentleman. I appreciate the panel
for being here today. We are going to close and wrap up. Before
we do, I want to thank Ms. Lujan Grisham. She is filling in for
the Ranking Member who has departed to participate in another
committee hearing.
And just in closing before we dismiss, I just want to again
thank you. And it seemed like the recurring theme in your oral
testimony was the USF issue and bringing that sort of
modernizing that, bringing it into the modern age. That is safe
to say? I think all four of you referred to that in some detail
in each of your opening comments. And so we will work hard on
that among the other issues that you have detailed. We
appreciate you being here.
I would also like to say that under the rules of the
Committee, the record of today's hearing will remain open for
10 calendar days to receive additional material and
supplementary written responses from the witnesses to any
questions posed by a Member of the Subcommittee on Livestock,
Rural Development, and Credit. The hearing is now adjourned.
[Whereupon, at 11:38 a.m., the Subcommittee was adjourned.]
[Material submitted for inclusion in the record follows:]
Supplementary Information Submitted by John C. Padalino, Administrator,
Rural Utilities Service, U.S. Department of Agriculture
Mr. Costa. So let me make a suggestion. I think that is all
good, but the Members of this Subcommittee, and maybe it is
something staff could work with the Members of the full
Committee, but it would be nice if we had a listing of--I don't
know if the number is 255 or whatever you stated earlier--these
projects that are currently ongoing so that we could know those
that are in our respective Congressional districts, and we
could help complement your efforts to say, ``Look. You are on a
timeline here, and you need to do everything you can to
expedite it so that you are able to complete the project,''
because that would--certainly we would like to know. I don't
think any of us would like to find a situation where next March
we have our local telephone company calling us and saying, ``We
are \2/3\ done with our project, but we are not going to
complete it until August, and they are telling us now we are
going to run out of their money. What can you do to help us?''
The Chairman. If the gentleman would yield, clarification
between grants and loans? If we could have that as well on
those 255 projects that you mentioned because that
clarification would be helpful as well. And if you could make a
distinction? I understand a grant is obviously different than a
loan, but are we going to see that funding unavailable for
loans that have already been made as well, or can they reapply
at some point if in fact they didn't meet that timeline?
Mr. Padalino. I thank you for your offer, and we really
appreciate the assistance and will be happy to work with the
staff on providing that information.
Per Mr. Costa and Mr. Crawford's requests at the hearing, I am
attaching two items that should be useful and informative. The first is
a 2011 BIP award report (Advancing Broadband--A Foundation for Strong
Rural Communities, January 2011). Though it is from 2011, it contains
all the relevant info on the awards, which is what Mr. Crawford was
looking for, and it contains a good description of each. In addition, I
am also attaching an excel sheet that lists out the projects, total
award, total project budget, and status.
Attachment 1
United States Department of Agriculture
Broadband Initiatives Program Awards Report
Advancing Broadband_A Foundation for Strong Rural Communities
January 2011
Contents
1 Message from the Administrator
2 Investing in Rural America
3 Infrastructure Awards
6 Satellite Awards
7 Technical Assistance Awards
9 Industry Standard Terms
10 Infrastructure Project Summaries
Message from the Administrator
The U.S. Department of Agriculture's (USDA) Rural Utilities Service
(RUS) is the Federal leader in delivering key utilities systems--
telecommunications, electricity, water and wastewater, and now 21st
century high-speed broadband services--to remote underserved and
unserved communities in rural America. Now, in expanding 21st century
high-speed broadband services to farms, schools, public safety
facilities, and other institutions in rural communities, the impact of
RUS initiatives will be experienced more broadly across the country.
Beginning in 1935, RUS's predecessor, the Rural Electrification
Administration, helped bring electricity to rural America and was the
driving force behind telephone service being introduced in the same
remote areas, starting in 1949.
Since 1994, RUS required federally funded telecommunications
projects to be broadband capable. In 2002, Congress created a broadband
loan program to pave the way for an Internet infrastructure of the
future. With the American Recovery and Reinvestment Act of 2009, RUS
assumed a leading role in stimulating the economy, creating jobs, and
bringing opportunity to rural Americans by investing more than $3.5
billion to expand broadband networks that will close the digital divide
between rural and urban communities. The Recovery Act also invested
$3.27 billion in rural water and waste disposal systems to further
bolster rural infrastructure.
RUS is applying its extensive technical skills, program experience,
and financial expertise gained over 75 years to the new challenge of
deploying the most advanced broadband capability in rural communities.
USDA Secretary Tom Vilsack has recognized broadband as a pillar of his
strategy to revitalize rural America. Since passage of the Recovery
Act, in collaboration with the U.S. Department of Commerce and other
Federal agencies, RUS has ensured valuable resources are distributed
effectively and efficiently, as Congress intended.
In September 2010, RUS completed the awards phase of the Broadband
Initiatives Program (BIP). This report summarizes the BIP awards made
to advance congressional directives and confirms the Obama
Administration's commitment to improving rural connectivity and
enhancing the quality of life for rural families and businesses. These
investments in broadband will connect nearly 7 million rural Americans,
along with more than 360,000 businesses and more than 30,000 critical
community institutions like schools, healthcare facilities, and public
safety agencies, to new or improved service.
These investments not only will benefit rural areas, but also will
contribute to our economic growth as a Nation. Through this program,
RUS is generating urgently needed jobs to construct these new networks.
Once built, they will provide the platform for economic development and
job creation for years to come.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Jonathan Adelstein,
Administrator,
Rural Utilities Service.
Investing in Rural America
Rural areas with dispersed populations or demanding terrain
generally have difficulty attracting broadband service providers
because the fixed cost of delivering broadband service can be too high.
Yet broadband is a key to economic growth. For rural businesses,
broadband gives access to national and international markets and
enables new, small, and home-based businesses to thrive. Broadband
access provides rural residents with the connectivity they need to
obtain healthcare, education, and many essential goods and services.
The Recovery Act authorized RUS to issue loans and grants to
projects that extend broadband service to unserved and underserved
rural areas. The funding provided by the Recovery Act is increasing the
availability of broadband and stimulating both short- and long-term
economic progress. RUS completed two BIP funding rounds, making a
significant investment in projects that will enhance broadband
infrastructure in scores of rural communities.
This represents a critical investment, designed to rebuild and
revitalize rural communities. Without this funding, many communities
could not cover the costs of providing broadband service to homes,
schools, libraries, healthcare providers, colleges, and other anchor
institutions.
----------------------------------------------------------------------------------------------------------------
Number of
Project Type Projects Grants Loans Total Awards
----------------------------------------------------------------------------------------------------------------
Infrastructure 297 $2,233,862,109 $1,191,844,578 $3,425,706,687
Satellite 4 $100,000,000 $0 $100,000,000
Technical Assistance 19 $3,384,202 $0 $3,384,202
---------------------------------------------------------------------------
Total Awards 320 $2,337,246,311 $1,191,844,578 $3,529,090,889
----------------------------------------------------------------------------------------------------------------
Infrastructure Awards
RUS awarded $3.4 billion to 297 recipients in 45 States and 1 U.S.
territory for infrastructure projects. Eighty-nine percent of the
awards and 92 percent of the total dollars awarded are for 285 last-
mile projects ($3.25 billion), which will provide broadband service to
households and other end users. Four percent of the awards and 5
percent of the total dollars awarded are for 12 middle-mile projects
($173 million) that will provide necessary backbone services such as
interoffice transport, backhaul, Internet connectivity, or special
access to rural areas.
The projects funded will bring broadband service to 2.8 million
households, reaching nearly 7 million people, 364,000 businesses, and
32,000 anchor institutions across more than 300,000 square miles. These
projects also overlap with 31 tribal lands and 124 persistent poverty
counties.
The projects will create more than 25,000 immediate and direct
jobs. Although the long-term impact these projects will have on
fostering job creation in these communities is difficult to estimate,
the projects are expected to contribute to the long-term economic
development opportunities in each rural community where a broadband
project is launched. Data provided by the U.S. Department of Education
show that more than 1 million K-12 students attend school within areas
served by BIP awards. More than 100 colleges and technical schools are
located in areas served by BIP awards. Data provided by the U.S.
Department of Health and Human Services show that nearly 600 rural
healthcare facilities are located in areas served by BIP awards.
Sixtyfive (11 percent) of these facilities will receive broadband for
the first time as a result of BIP.
BIP Awards and Awardee Contribution
in millions
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Numerical value represents number of awards.
BIP Awards and Awardee Contribution by Entity Type
in millions
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Numerical value represents number of awards.
BIP Technology Type BIP Awards Serve Nearly 600 Rural
number of projects Healthcare Facilities
number of facilities
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Numerical value represents Numerical value represents
number of awards. number of awards.
Source: U.S. Department of
Health and Human Services.
More Than 1 Million K-12 Students Attend School Within Areas Served by
BIP Awards
percent of school children
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BIP Awards by Project Type
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BIP Awards by Technology Type
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Satellite Awards
RUS funded additional BIP awards through the Satellite Grant
Program.
The Satellite Grant Program made $100 million available through
four broadband satellite providers to connect rural premises left
unserved by other technologies. These broadband satellite providers are
expected to reach nearly 424,000 premises and 10,000 commercial
subscribers across the country. Through this funding, these subscribers
will receive broadband satellite premises equipment, installation, and
activation at no cost to them, as well as discounted service for at
least 1 year.
Satellite Awardees
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Awardee Name Regions
------------------------------------------------------------------------
EchoStar XI Regions 4-6
Hughes Network Systems Regions 1-8
Spacenet, Inc. Regions 7-8
WildBlue Communications Regions 1-3
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BIP Satellite Regions
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Technical Assistance Awards
RUS funded additional BIP awards through the Technical Assistance
Grant Program.
The Technical Assistance Grant Program provides $3.4 million to 19
technical assistance projects to create regional broadband development
plans in 13 States. Some of the projects will cross Native American
tribal areas. The Technical Assistance Grant Program will provide
funding of up to $200,000 to infrastructure award recipients and Indian
tribes. These technical assistance grants will support planning efforts
that will lay the groundwork for the future development of broadband
infrastructure and increased broadband access in rural areas.
Technical Assistance Awardees
------------------------------------------------------------------------
Awardee Name State
------------------------------------------------------------------------
Central Council of the Tlingit & Alaska
Haida Indian Tribes of Alaska
Ute Mountain Ute Tribe Colorado
Shoshone-Bannock Tribes Idaho
Mille Lacs Band of Ojibwe Minnesota
Northeast Service Cooperative Minnesota
Arizona Nevada Tower Corporation Nevada
Confederated Tribes of the Goshute Nevada, Utah
Reservation
Consolidated Electric Cooperative Ohio
Benton Ridge Telephone Company Ohio
Pioneer Long Distance, Inc. Oklahoma
Cherokee Nation Oklahoma
Kaw Nation-Kaw Enterprise Development Oklahoma
Authority
Warm Springs Telecommunications Oregon
Company
County of Orangeburg South Carolina
Lower Brule Sioux Tribe South Dakota
Sisseton Wahpeton Oyate South Dakota
Scott County Telephone Cooperative Virginia
Quinault Indian Nation Washington
Jamestown S'Klallam Tribe Washington
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[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
FORMAT>
$ = Amount (in millions) of all BTOP and BIP awards impacting
that State or Territory (note: amount may include the estimated
per State share of any BTOP awards that impact multiple
States).
# = Total number of BTOP and BIP awards impacting that State
or Territory.
The combined investments of USDA's BIP and the U.S.
Department of Commerce's National Telecommunications and
Information Administration Broadband Technology Opportunities
Program (BTOP). The funds awarded in each State are the result
of the two agency programs authorized by the Recovery Act of
2009.
For additional information on the BTOP awards, visit http://
www2.ntia.doc.gov.
Industry Standard Terms
------------------------------------------------------------------------------------------------------------------------------------------------
ADSL/ADSL2+ Asymmetric Digital Subscriber Line
ASN-GW Access Service Network Gateway
BLC Broadband Loop Carrier
BPL Broadband Over Powerlines
CLEC Competitive Local Exchange Carrier
CSN Connectivity Service Network
DLC Digital Loop Carrier
DOCSIS Data Over Cable Service Interface
Specification
DSL Digital Subscriber Line
DSLAM Digital Subscriber Line Access
Multiplexer
DWDM Dense Wavelength Division
Multiplexing
FTTH Fiber-to-the-Home
FTTN Fiber-to-the-Node
FTTP Fiber-to-the-Premise
FTTT Fiber-to-the-Tower
FTTx Fiber-to-the-x
Gbps Gigabits Per Second
GHz Gigahertz
GigE Gigabit Ethernet
GPON Gigabit Passive Optical Network
HFC Hybrid Fiber/Coaxial
Hz Hertz
ILEC Incumbent Local Exchange Carrier
IP Internet Protocol
IPTV Internet Protocol Television
ITU International Telecommunication
Union
Kbps Kilobits Per Second
LEC Local Exchange Carrier
LTE Long Term Evolution
Mbps Megabits Per Second
MIMO Multiple Input Multiple Output
OLT Optical Line Terminals
OSN Optical Splitting Network
P2MP Point-to-Multipoint
PFSA Proposed Funded Service Area
PON Passive Optical Network
POP Point of Presence
POTS Plain Old Telephone Service
PUD Public Utility District
RF Radio Frequency
RFoG Radio Frequency over Glass
SIP Service Interface Point
VDSL2 Very-High-Speed Digital Subscriber
Line 2
VoIP Voice over Internet Protocol
WiMAX Worldwide Interoperability for
Microwave Access
------------------------------------------------------------------------
Infrastructure Project Summaries
Estimates of jobs created or saved are based on information
provided by applicants.
Alabama
Butler Telephone Company, Inc.
Butler Telephone Company, Inc., Project to Serve Rural, Remote, and
Unserved Establishments
Last Mile Remote
$3,892,920 Grant
Butler Telephone Company, Inc., a subsidiary of TDS
Telecommunications Corp. (TDS Telecom), will provide high-speed DSL
broadband service to remote, unserved households within its rural
service territory in Alabama. The network will make services available
to 462 households, 23 businesses, and 1 anchor institution. The project
will create or save an estimated 77 jobs.
National Telephone of Alabama, Inc.
Cherokee Broadband Initiatives Project
Last Mile
$421,578 Loan
$1,264,739 Grant
National Telephone of Alabama, Inc., will deploy ADSL2+ technology
to provide the infrastructure necessary for rural subscribers in the
Colbert County communities of Barton, Cherokee, and Margerum to access
advanced high-speed broadband service. The network will make services
available to 1,294 households, 231 businesses, and 8 anchor
institutions. The project will create four jobs.
North Alabama Electric Cooperative
North Alabama Remote Rural Broadband Economic Development
Initiative
Last Mile
$19,100,909 Grant
North Alabama Electric Cooperative will provide a last-mile FTTH
network for high-speed broadband in an underserved rural area in
northeast Alabama. North Alabama Electric Cooperative and New Hope
Telephone Cooperative, a service provider, are partnering to provide
high-speed broadband access to more than 8,048 households, 1,442
businesses, and 53 anchor institutions. North Alabama Electric
Cooperative will provide voice, video, and data services to customers
over an active GPON using fiber-optic cable and passive and active
components. Internet connections will be at 100 Mbps or higher. The
project will create or save 51 jobs.
Peoples Telephone Company, Inc.
Peoples Telephone Company, Inc., Broadband Project to Serve Rural
Unserved Establishments
Last Mile
$4,163,589 Grant
Peoples Telephone Company, Inc. (Peoples Tel), a subsidiary of TDS
Telecom, will build a project to bring high-speed broadband service to
unserved premises within Peoples Tel's rural franchise service
territory. Peoples Tel is the State-certified ILEC in Alabama. The
project will serve 11 PFSAs located within its franchised service
territory, which are 100 percent rural and include 11 communities.
Within these PFSAs, there are 1,219 premises (1,199 households, 19
businesses, and 1 anchor institution) that have no access to broadband
service. Peoples Tel has built a broadband network that is capable of
serving the majority of these premises in several of the core
communities, but the surrounding area, much of which is sparsely
populated, lacks broadband access due to the high cost of building such
a network. In addition, facilities-based terrestrial broadband service
is unavailable to the premises in the PFSAs. This project will provide
access to high-speed broadband service (20 Mbps upstream and downstream
combined). The network is also engineered so that it can be easily
upgraded at a reasonable cost to meet future needs. The project will
create or save 109 jobs.
Utopian Wireless Corporation
Utopian Ashford WiMAX Project
Last Mile
$396,525 Loan
$1,189,575 Grant
Utopian Wireless Corporation will make available advanced 4G
wireless broadband service to underserved communities in and around the
Ashford area. The PFSA includes the rural areas of Slocomb, Ashford,
Hartford, Cottonwood, Webb, and Chancellor. The PFSA covers
approximately 9,391 households, 3,848 businesses, and 219 anchor
institutions. Using licensed 2.5 GHz spectrum, Utopian Wireless
Corporation will deploy a broadband wireless system that features
Motorola Mobile WiMAX technology, which offers several advantages over
other wireless technologies, including a highly efficient air interface
optimized for IP, built-in support for advanced antenna technologies
like MIMO, and quality-of-service controls that enable differentiated
services and open access. The project will create 10 full-time jobs.
Utopian Wireless Corporation
Utopian Shoals WiMAX Project
Last Mile
$569,679 Loan
$1,709,039 Grant
Utopian Wireless Corporation will make available advanced 4G
wireless broadband service to underserved communities in and around the
Shoals area. The rural PFSA includes the ZIP code areas of 35645
(Killen), 35652 (Rogersville), 35672 (Town Creek), 35646 (Leighton),
and 35618 and covers approximately 11,885 households, 1,731 businesses,
and 220 anchor institutions. Using licensed 2.5 GHz spectrum, Utopian
Wireless Corporation will deploy a broadband wireless system that
features Motorola Mobile WiMAX technology. The system solution includes
WiMAX access points, wireless and wired backhaul, ASN-GW, CSN, and an
IP core that supports authentication and routing of traffic to
application servers and the Internet. The project will create 14 full-
time jobs.
Alaska
Copper Valley Telephone Cooperative, Inc.
McCarthy Microwave Shot
Middle Mile
$2,613,975 Loan
$2,613,975 Grant
Copper Valley Telephone Cooperative, Inc. (CVTC) will extend
terrestrial wireless broadband connectivity to McCarthy, a remote rural
community where CVTC is the serving LEC. The project will allow CVTC to
transition from a low-bandwidth-capacity satellite link to the proposed
high-capacity terrestrial microwave middle-mile service in an area that
has no terrestrial connections to outside networks. Currently, all
communications in and out of McCarthy utilize earthorbiting satellites.
The project will make services available to 26 households, 15
businesses, and 3 anchor institutions that are unserved, creating the
potential for increased business growth, public services, public
safety, and quality of life for the residents of McCarthy. The project
will create 56 jobs.
Copper Valley Wireless, Inc.
Copper Valley Wireless--Cordova, AK, Microwave
Middle Mile
$1,747,796 Loan
$1,747,795 Grant
Copper Valley Wireless, Inc., will extend terrestrial connectivity
from Naked Island to Cordova, a remote rural community with voice
service provided by the local cooperative. The project will provide
access to the interexchange carrier to provide high-speed broadband to
residents. The network will make services available to 1,077 households
and 10 anchor institutions. The project will create five jobs.
Rivada Sea Lion, LLC
Southwestern Alaska Broadband Rural Expansion (SABRE)
Last Mile Remote
$25,333,240 Grant
Rivada Sea Lion, LLC will deliver low-cost, highspeed broadband and
public safety interoperability to the inaccessible communities of
southwestern Alaska. The project will dramatically enhance service to
homes, businesses, community centers, schools, medical clinics, and
public safety organizations. SABRE will use a unique combination of
wireless technologies to deliver leading-edge connectivity to the
proposed service area. The network will make services available to
8,136 households, 809 businesses, and 128 anchor institutions. The
project will create an estimated 60 jobs.
Supervision, Inc.
Farther and Faster
Last Mile Remote
$174,680 Grant
Supervision, Inc.'s Farther and Faster project will provide last-
mile cable to deliver broadband capability to homes, businesses, and
community facilities in Tanana, a predominantly Alaska Native community
located on the Yukon River. The network will make services available to
166 households, 14 businesses, and 5 anchor institutions.
United Utilities, Inc.
TERRA-SW: Terrestrial Broadband in Southwestern Alaska
Middle Mile
$44,158,522 Loan
$43,982,240 Grant
United Utilities, Inc., will provide middle-mile connectivity to 65
communities in southwestern Alaska. These communities span the Bristol
Bay and Yukon Kuskokwim regions, an area approximately the size of
North Dakota. Connectivity is over a combination of undersea fiber,
terrestrial fiber, and microwave links. United Utilities will leverage
its DeltaNet network to reduce the total cost of deployment. The
network will make services available to 9,100 households, 748
businesses, and 89 anchor institutions. The project will create or save
105 jobs.
American Samoa
American Samoa Telecommunications Authority
Broadband Linking the American Samoa Territory (BLAST) Project
Last Mile Remote
$10,000,000 Loan
$81,034,763 Grant
American Samoa Telecommunications Authority will replace its old,
deteriorating legacy copper infrastructure with a more robust and
weather-durable fiber-optic network that will link the main islands of
American Samoa, making it possible to provide broadband services to
every household, business, and anchor institution in the territory. The
network will make services available to 9,735 households, 315
businesses, and 106 anchor institutions. The project will create an
estimated 2,000 jobs.
Arizona
Arizona Telephone Company
Arizona Telephone Company: Broadband Project to Serve Rural
Unserved Establishments
Last Mile
$4,014,808 Grant
Arizona Telephone Company (Arizona Tel) will bring high-speed
broadband service to unserved premises in its rural franchise service
territory. Arizona Tel, a subsidiary of TDS Telecom, is the State-
certified ILEC in Arizona. The project is designed to serve nine PFSAs
in its franchised service territory, which is 100 percent rural and
includes six communities. In these PFSAs, 608 premises (552 households,
54 businesses, and 2 anchor institutions) currently have no access to
broadband service. Arizona Tel has built a broadband network that is
capable of serving the majority of these premises in several of the
core communities, but the surrounding area, much of which is sparsely
populated, lacks broadband access due to the high cost of building such
a network. In addition, facilities-based terrestrial broadband service
is unavailable to the premises in the PFSAs. This project will provide
access to high-speed broadband service (20 Mbps upstream and downstream
combined). The network is also engineered so that it can be easily
upgraded at a reasonable cost to meet future needs. The project will
create or save 106 jobs.
Hopi Telecommunications, Inc.
HTI Jeddito Middle-Mile/Last-Mile Project
Middle Mile
$1,090,471 Loan
$2,544,432 Grant
Hopi Telecommunications, Inc. (HTI) will deploy 61 miles of fiber-
optic cable between the community of Jeddito in its service area and
the Frontier Communications POP in Holbrook. In addition to this fiber
build-out, a last-mile component will provide broadband service to
currently unserved subscribers around the communities of Jeddito and
Spider Mound. HTI will serve these subscribers using wireless P2MP
WiMAX access equipment. As the middle-mile component is the predominant
part of the proposed system, this project is classified as a middle-
mile project. The network will make services available to 2,734
households, 26 businesses, and 22 anchor institutions. The project will
create 18 jobs.
J.C. Cullen, Inc.
Northern Arizona Data/Internet Network Extension (NADINE)
Middle Mile
$2,204,230 Grant
J.C. Cullen, Inc., will implement the NADINE project to provide
broadband service speeds of up to 300 Mbps in rural areas of the
Havasupai Reservation and two scientific research facilities. The
project will use licensed microwave radios with hot standby units. The
project also includes a monitoring system located at an existing
operation center and the utilization of five existing mountaintop
communications sites for backhaul repeater locations. The network will
make services available to 2,330 households, 8 businesses, and 20
anchor institutions. The project will create or save 22 jobs.
Midvale Telephone Exchange, Inc.
MTE Last Mile Broadband Connections Initiative Henderson Service
Area
Last Mile
$334,924 Loan
$781,488 Grant
Midvale Telephone Exchange, Inc., will offer last-mile broadband
service speeds of at least 20 Mbps in the Prescott Prairie, Mingus
Meadows, and Mingus Mountain areas of Henderson Valley using FTTH
technology. The network will make services available to 117 households
and 981 businesses. The project will create or save 10 jobs.
Midvale Telephone Exchange, Inc.
MTE Last Mile Broadband Connections Initiative Young Service Area
Last Mile
$644,045 Loan
$1,502,769 Grant
Midvale Telephone Exchange, Inc., will implement the Last Mile
Broadband Connections Initiative Young Service Area project to provide
service with a minimum of 20 Mbps in rural areas of the Young exchange.
The project will use FTTH technology, and will facilitate public safety
training, improved access to urban medical care centers, educational
access, and expanded access to urban library services. The network will
make services available to 236 households, 14 businesses, and 1 anchor
institution. The project will create or save 10 jobs.
San Carlos Apache Telecommunications Utility, Inc.
San Carlos Apache Telecommunications, Inc. Broadband Offering
Last Mile
$5,244,585 Loan
$5,244,585 Grant
San Carlos Apache Telecommunications Utility, Inc. (SCATUI) will
provide FTTP services to two areas within its serving areas on the San
Carlos Apache Reservation. In the Bylas PFSA, residents currently are
being compelled to relocate their homes to a different area due to
uncontrollable circumstances. This grant is crucial to providing these
customers with broadband Internet and phone service. Within the San
Carlos service area, FTTP services will be provided to five new
communities, a hospital, and multiple doctor facilities that are
currently unserved. In addition, SCATUI will build five new tower sites
to provide broadband Internet service for residents and emergency
services personnel in very remote areas of the reservation that are
also unserved. The network will make services available to 2,377
households, 21 businesses, and 51 anchor institutions. The project will
create 63 jobs.
Tohono O'odham Utility Authority
Tohono O'odham Fiber Route--Middle Mile
Middle Mile
$3,565,900 Loan
$3,565,900 Grant
Tohono O'odham Utility Authority (TOUA) will enable high-speed DSL
service throughout the entire Tohono O'odham Reservation, with FTTP and
fixed wireless broadband in certain areas. This area includes the three
telephone exchanges currently owned and operated by TOUA. The network
will offer a range of plans, with the most common average broadband
service speed supporting 2 Mbps downstream and 512 Kbps upstream. TOUA
also plans to offer 1,000 free computers and 6 months of free high-
speed Internet service to those in need who can demonstrate an economic
development or educational benefit. The network will make services
available to 2,307 households and 480 businesses.
Tohono O'odham Utility Authority
Tohono O'odham Last-Mile FTTH and Broadband Wireless Network
Last Mile
$2,576,750 Loan
$7,730,250 Grant
Tohono O'odham Utility Authority (TOUA) will further develop its
communications network to improve current conditions in the Tohono
O'odham Nation. TOUA was awarded a middle-mile BIP loan and grant
(Easygrants ID 1767) in round one. This last-mile project is
synergistic with the recently awarded project. Both the middle-mile and
lastmile elements are integral to the total broadband solution for the
TOUA service area. The middle-mile project allows TOUA to build a
strong high-speed transport network that will interconnect all the
last-mile nodes in this project. TOUA will leverage its current
investment in broadband access BLC equipment to build an extensive FTTH
network. In conjunction with the project defined in the middlemile
award, this project will extend broadband service to nearly all the
unserved and underserved lastmile sections in the entire PFSA Tohono
O'odham Reservation. The system will use a combination of fiber-optic
technology along with DSL and broadband wireless and will enable
service speeds beyond 20 Mbps. TOUA will also offer wireless services
from each of its BLC locations. These WiFi areas can be deployed
quickly and economically. The project will make services available to
2,711 households, 1,329 businesses, and 60 anchor institutions. The
project will create more than 100 jobs.
Arkansas
Crystal Broadband Networks
Crystal Broadband Networks Southeast Arkansas WiMAX System
Last Mile
$1,808,881 Loan
$1,737,945 Grant
Crystal Broadband Networks will provide last-mile broadband service
to more than 600 square miles of rural Arkansas. The project will
deploy a fixed wireless network utilizing WiMAX technology to offer
broadband service speeds of at least 5 Mbps. The network will make
services available to 2,399 households, 1,318 businesses, and 13 anchor
institutions. The project will create or save 24 jobs.
Northern Arkansas Telephone Company
Northern Arkansas Broadband
Last Mile
$2,569,636 Grant
Northern Arkansas Telephone Company will substantially expand the
provision of advanced FTTH and ADSL2+ services via a fiber-optic
network with combined speeds exceeding 20 Mbps in Marion and Boone
counties in rural north central Arkansas. The network will make
services available to 725 households, 70 businesses, and 10 anchor
institutions. The project will create 95 jobs.
Utopian Wireless Corporation
Utopian Searcy WiMAX Project
Last Mile
$744,165 Loan
$2,232,496 Grant
Utopian Wireless Corporation will provide wireless broadband
service to two rural underserved communities near Searcy. These rural
PFSAs cover approximately 19,391 households, 2,050 businesses, and 111
anchor institutions. Using its licensed 2.5G Hz spectrum, Utopian will
deploy a broadband wireless system that features Motorola Mobile WiMAX
technology that will support 5.0 and 10 MHz channels. The system
includes WiMAX access points, wireless and wired backhaul, ASN-GW, CSN,
and an IP core that supports authentication and the routing of traffic
to application servers and the Internet. Utopian will offer tiered
services with an average minimum wireless downlink speed of at least
1.8 Mbps. The project will create 15 jobs.
Windstream Corporation
Windstream Arkansas, LLC
Last Mile
$7,285,202 Grant
Windstream Corporation will expand broadband service to unserved
customers in rural areas of Arkansas. With this project, Windstream
will extend the reach of its broadband network to make services
available to 6,111 households, 339 businesses, and 33 anchor
institutions. It will provide broadband to last-mile wireline telephone
subscribers. Windstream will provide broadband service to community and
public service facilities in the PFSAs at discounted rate packages for
at least 3 years. Windstream will deploy industry standard DSLAM
protocols to provide a minimum of 6.0 Mbps downstream and 786 Kbps
upstream data services. The DSLAM will be strategically deployed to
reach the greatest number of unserved customers over its existing
wireline copper plant. The project will create or save 122 jobs.
California
Audeamus
Westside Broadband Project for Rural Central California--San
Joaquin, Tranquillity, and West Fresno
Last Mile Non-remote
$2,741,505 Loan
$2,741,505 Grant
Audeamus will build a fiber-based broadband infrastructure for the
unserved and underserved communities of San Joaquin and Tranquillity
and for a portion of rural west Fresno County. This last-mile project
will provide broadband access to approximately 1,352 households, 125
local businesses, and 24 anchor institutions. The project will create
or save 93 jobs.
Calaveras Telephone Company
Calaveras Fiber-to-the-Home Broadband Deployment Project
Last Mile
$1,226,093 Loan
$2,860,883 Grant
Calaveras Telephone Company will deploy FTTH technology to increase
the availability of broadband service in Poker Flat, an area south of
Copperopolis in Calaveras County. The company will bring a robust FTTH
infrastructure to its existing customer footprint in Calaveras County.
Deployment is based upon an overbuild and expansion of existing
exchange areas as well as an increased transport route to the local
Internet POP. The project's PFSA, which lies in the Sierra Nevada
foothills, has a unique mixture of broadband users that includes remote
workers from nearby economic centers like Stockton, Sacramento, and San
Francisco. The project will make services available to 409 households
and 4 businesses. It includes upgraded transport infrastructure to
handle backhaul for existing and new construction areas and effectively
expands the company's broadband footprint. To accommodate the varied
demographics and subscriber profiles in the served areas, Calaveras
will use several service offerings, ranging from 1.5 Mbps to 50 Mbps.
The network will incorporate GPON and active fiber infrastructure with
existing landline telephone switching. The project will create or save
eight jobs.
Cal-Ore Communications, Inc.
North Siskiyou Wireless Broadband
Last Mile
$446,600 Loan
$1,339,800 Grant
Cal-Ore Communications, Inc., and Cal-Ore Telephone Company will
cooperate to build and manage a last-mile wireless broadband project to
serve north central Siskiyou County. The general mountainous terrain
combined with dense stands of juniper trees makes wireless coverage
difficult and requires additional radio sites to achieve coverage
across the area. The project will also provide IP voice services over a
wireless network. The PFSA includes 2,022 households and 365 businesses
that are predominantly farms, ranches, and other agricultural entities,
and 27 anchor institutions. The project will provide wireless broadband
to unserved and underserved communities and enhanced backhaul capacity
to neighboring blocks served by Cal-Ore Communications and Cal-Ore
Telephone Company. The project will create five jobs.
Ponderosa Cablevision
Millerton Project
Last Mile Non-remote
$1,926,431 Loan
$1,926,431 Grant
Ponderosa Cablevision will deploy FTTP in a 31-square-mile area
adjacent to Ponderosa's current service territory. The project will
make telemedicine and online education applications accessible, a true
benefit in an area where reaching the closest medical and school
facilities requires a 45-minute drive. The network will make services
available to 693 households. The project will create or save 34 jobs.
Smarter Broadband
Smarter Broadband Project
Last Mile
$624,681 Loan
$1,874,043 Grant
Smarter Broadband will provide high-speed broadband access to
western Nevada County over 435 square miles of rural, mountainous, and
wooded territory. Smarter Broadband operates a network of wireless
access points spanning multiple towers throughout the PFSA. The company
will deliver speeds up to 6 Mbps and more to this largely underserved
area. The project will make services available to 14,075 households,
3,581 businesses, and 298 anchor institutions. The project will create
10 jobs.
Softcom Internet Communications, Inc.
Softcom Rural Broadband Expansion Project
Last Mile
$1,689,710 Loan
$5,069,125 Grant
Softcom Internet Communications, Inc., will provide broadband
service speeds of 3 Mbps downstream and 1 Mbps upstream to an
underserved rural area in Sacramento and San Joaquin counties in north
central California. The project will cover 378 square miles and will
make services available to 6,001 households, 4,266 businesses, and 5
anchor institutions. The project network is based on Softcom's second-
generation wireless platform, a proven platform that has been in
operation more than 3 years. The project consists of augmenting and
expanding the coverage of this network to provide 100 percent broadband
availability throughout the entire service area. The project will
create 38 jobs.
Colorado
Delta County Tele-Com, Inc.
Delta County Tele-Com, Inc., Broadband Project to Serve Rural
Unserved Establishments
Last Mile
$1,826,979 Grant
Delta County Tele-Com, Inc. (Delta County Tel), a subsidiary of TDS
Telecom, will provide highspeed broadband service to three 100 percent
rural PFSAs with four communities in its service territory. These PFSAs
have 540 premises (495 households and 45 businesses) with no access to
broadband service. Delta County Tel is the State-certified ILEC in
Colorado. As engineered, the network will deploy Ethernet-over-copper
technology to its fullest potential, provide VDSL2 access devices
packaged in an FTTN configuration, upgrade access in the central office
to support the extension of the broadband networks to these remote
areas, use PON FTTH where economically feasible, and allow future PON
upgrades without needing to rebuild the transport routes. The target
speed is 20 Mbps (upstream and downstream combined) or more DSL
service. This project will create or save 48 jobs.
Nunn Telephone Company
Nunn Rural Broadband Project
Last Mile
$1,293,125 Loan
$3,879,375 Grant
Nunn Telephone Company will provide highspeed broadband service to
rural residents and businesses in north central Colorado, utilizing
FTTH technologies. The network will make services available to 373
households, 191 businesses, and 3 anchor institutions. The project will
create 20 jobs.
Peetz Cooperative Telephone Co.
Peetz Last Mile
Last Mile Remote
$756,925 Grant
Peetz Cooperative Telephone Co., will deploy broadband
infrastructure in and around the Peetz community using a combination of
technologies. This deployment within the remote unserved ranching and
agricultural community will create jobs and stimulate economic growth.
Anchor institutions within the community will have connectivity to
necessary distance learning and public safety applications. A portion
of this project will also be implemented in Nebraska. The network will
make services available to 254 households, 15 businesses, and 6 anchor
institutions. The project will create five jobs.
Plains Cooperative Telephone Association, Inc.
Fiber on the Colorado Plains
Last Mile
$9,475,120 Loan
$1,672,080 Grant
Plains Cooperative Telephone Association, Inc., will offer FTTH
broadband service on the eastern plains of Colorado. The project will
add 1,000 miles of fiber-optic cable over a 1,974 square-mile area. The
network will make services available to 1,096 households, 272
businesses, and 42 anchor institutions. The project will create or save
24 jobs.
Stoneham Cooperative Telephone Corporation
Stoneham FTTH
Last Mile
$234,541 Loan
$1,407,244 Grant
Stoneham Cooperative Telephone Corporation will offer FTTH
broadband service in Weld, Logan, and Morgan counties, which consist of
rural farming and ranching territory. The network will make services
available to 62 households, 9 businesses, and 4 anchor institutions.
The project will create or save two jobs.
Wiggins Telephone Association
Weldona-Orchard FTTP
Last Mile Non-remote
$2,168,544 Loan
$2,159,887 Grant
Wiggins Telephone Association will deploy FTTP infrastructure in
the Weldona-Orchard area of northeastern Colorado. The network will
make services available to 446 households, 40 businesses, and 7 anchor
institutions. The project will create nine jobs.
Willard Telephone Company
Willard Telephone Company FTTH
Last Mile
$245,505 Loan
$546,442 Grant
Willard Telephone Company will upgrade its exchange facilities
located in western Logan County to offer FTTH to the Willard Community,
a non-designated community in northeastern Colorado. The PFSA, mainly
farm and ranch land, is so remote that residents do not receive daily
newspapers and some residents receive mail service only 3 days a week.
The network will make services available to 76 households, 8
businesses, and 3 anchor institutions. The project is expected to
create or save 11 jobs.
Florida
Litestream Holdings, LLC
Western St. Lucie County Broadband Expansion
Last Mile
$5,053,427 Grant
Litestream Holdings will extend its existing fiber trunk to serve
more than 940 unserved locations in a rural portion of unincorporated
St. Lucie County. The PFSA will have access to high-speed Internet,
digital voice service, and analog and digital high-definition video
services. The project will implement FTTH using RFoG technology that
allows seamless end-to-end conversion of traditional coax RF signals
over fiberoptic cable. RFoG technology will allow Litestream to
leverage its existing 860 MHz RF head-end and DOCSIS-based Internet
distribution framework, thus reducing cost. The project will be
constructed in four phases across approximately 54 miles of trunk fiber
to connect with the existing network infrastructure, 111 miles of
lateral fiber, and 72 miles of community fiber. Maximum combined
download and upload speeds will exceed 20 Mbps on the maximum tiered
level of service offered. The project will create 52 jobs.
Myakka Communications, Inc.
Myakka Communications
Last Mile
$1,963,930 Loan
$5,891,796 Grant
Myakka Communications will deploy a fiber overbuild and expansion
of the wireless network of its sister company, Myakka Technologies. The
project will serve a rural portion of Florida that has no cable, DSL,
or fiber infrastructure. It will serve rural eastern portions of
Manatee and Sarasota counties with speeds of up to 20 Mbps. The project
will deploy approximately 150 miles of fiber-optic cable and will make
services available to 4,150 premises. This overbuild will provide a
hybrid, efficient, and economical system of fiber and wireless. The
project will create 49 jobs.
Quincy Telephone Company
Quincy Telephone Company: Broadband Project to Serve Rural Unserved
Establishments
Last Mile
$1,145,379 Grant
Quincy Telephone Company will offer broadband service speeds of up
to 20 Mbps in Gadsden County, Florida and Decatur County, Georgia. As
engineered, the network will deploy Ethernet-over-copper technology and
will provide VDSL2 access via FTTN. The network will make services
available to 346 households, 12 businesses, and 2 anchor institutions.
The project will create or save 30 jobs.
Windstream Corporation
Windstream Florida, Inc.
Last Mile
$38,288,349 Grant
Windstream Corporation will expand broadband service to unserved
customers in rural areas of Florida. The project will allow Windstream
to extend the reach of its broadband network to make services available
to 50,026 households, 4,765 businesses, and 149 anchor institutions. It
will provide broadband to last-mile wireline telephone subscribers.
Windstream will provide broadband service to community and public
service facilities in the PFSAs at discounted rate packages for at
least 3 years. Windstream will deploy industry-standard DSLAM protocols
to provide a minimum of 6.0 Mbps downstream and 786 Kbps upstream data
services. The DSLAM will be strategically deployed to reach the
greatest number of unserved customers over its existing wireline copper
plant. The project is expected to create an estimated 226 jobs.
Georgia
Blue Ridge Telephone Company
Blue Ridge Telephone Company: Broadband Project to Serve Rural
Unserved Establishments
Last Mile
$853,768 Grant
Blue Ridge Telephone Company (Blue Ridge Tel), a subsidiary of TDS
Telecom, will build a highspeed broadband network in Georgia in two 100
percent rural PFSAs with three communities. These PFSAs have 368
premises (352 households and 16 businesses) with no access to broadband
service. Blue Ridge Tel is the State-certified ILEC in Georgia. As
engineered, the network will deploy Ethernet-over-copper technology,
provide VDSL2 access devices packaged in an FTTN configuration, upgrade
access in the central office to support the extension of the broadband
networks to these remote areas, use PON FTTH where economically
feasible, and allow future PON upgrades without needing to rebuild the
transport routes. The network's target speed is 20 Mbps (upstream and
downstream combined) or more DSL service. The project will create or
save 22 jobs.
Bulldog Cable Georgia, Inc.
Bulldog Cable--Lake Sinclair System
Last Mile
$2,843,713 Loan
$8,531,138 Grant
Bulldog Cable Georgia, Inc., will offer advanced broadband service
speeds of up to 5 Mbps in the area of Lake Sinclair. The project will
upgrade 42 miles of cable with new 1 GHz cable and expand an additional
163 miles of new construction for a total of 205 miles of HFC cable.
The network will make services available to 5,025 households and 1,369
businesses. The project will create or save 59 jobs.
Darien Telephone Company, Inc.
Broadband Bridge to Sapelo Island
Last Mile
$223,996 Loan
$223,997 Grant
Darien Telephone Company, Inc., will expand high-speed broadband
service to Sapelo Island, a barrier island off the coast of Georgia
currently without access to high-speed broadband, using FTTH GPON
technology. The network will make services available to 240 households,
10 businesses, and 10 anchor institutions and will help drive economic
development in the community. The project will create 23 jobs.
Flint Cable TV, Inc.
Flint Digital Wave
Last Mile Non-remote
$4,095,913 Loan
$4,095,913 Grant
Flint Cable TV, Inc., will provide an HFC network to homes in the
underserved areas of Culloden, Friendship, and Yatesville in rural
central Georgia. This HFC network will use the latest DOCSIS 3.0 cable
standard, enabling channel bonding and speeds up to 100 Mbps. The
network will make services available to 2,786 households, 22
businesses, and 19 anchor institutions. The project will create 20
jobs.
Quincy Telephone Company
Quincy Telephone Company: Broadband Project to Serve Rural Unserved
Establishments
Last Mile
$218,168 Grant
Quincy Telephone Company will offer broadband service speeds of up
to 20 Mbps in Gadsden County, Florida and Decatur County, Georgia. As
engineered, the network will deploy Ethernet-over-copper technology and
will provide VDSL2 access via FTTN. The network will make services
available to 66 households and 2 businesses. The project will create or
save six jobs.
South Georgia Regional Information Technology Authority
SGRITA Rural Last Mile Infrastructure Project
Last Mile
$6,663,515 Loan
$6,663,515 Grant
South Georgia Regional Information Technology Authority will offer
700 MHz and 2.5 GHz 4G mobile and fixed wireless broadband service in
the rural southwest counties of Baker, Calhoun, Early, Miller, and
Mitchell. The network will make services available to 21,033
households, 2,272 businesses, and 246 anchor institutions. The project
will create or save eight jobs.
Wilkes Telephone & Electric Company
Wilkes Telephone Company FTTH Build-Out
Last Mile
$14,433,762 Loan
$33,678,779 Grant
Wilkes Telephone & Electric Company will provide state-of-the-art
communication services while enhancing broadband communication options
to the citizens of Lincoln, Taliaferro, and Wilkes counties. The
network will make services available to 7,832 households, 802
businesses, and 58 anchor institutions, providing infrastructure for
affordable bandwidth and services, and will integrate economic
development, employment, education, public safety, public health, and
other government services. The technology will be an FTTH wireline
fiber-optic cable network, configured in PON architecture, able to
support speeds in excess of 20 Gbps. The project will create 74 jobs.
Windstream Corporation
Georgia Windstream, LLC
Last Mile
$4,665,116 Grant
Windstream Corporation will offer broadband service speeds of up to
12 Mbps in the counties of Appling, Charlton, Dodge, Early, Miller,
Rabun, Seminole, Tattnall, Telfair, Upson, Walker, and Wayne by
deploying DSLAMs using ADSL2+. The network will make services available
to 4,033 households, 284 businesses, and 35 anchor institutions. The
project will create or save 54 jobs.
Windstream Corporation
Windstream Georgia Communications, LLC
Last Mile
$5,129,575 Grant
Windstream Corporation will provide last-mile broadband service to
numerous unserved rural areas of Georgia. Windstream will deploy
industry-standard DSLAMs using ADSL2+ protocols to provide a minimum of
6 Mbps downstream and 786 Kbps upstream data services. DSLAMs will be
strategically deployed to reach the greatest number of unserved
customers over the existing wireline copper plant. The project will
make services available to 18,503 households, 2,037 businesses, and 119
anchor institutions. The project will create an estimated 55 jobs.
Windstream Corporation
Windstream Standard, LLC
Last Mile
$6,940,375 Grant
Windstream Corporation will expand broadband service to unserved
customers in rural areas of Georgia. The PFSA comprises the 21
communities of Baldwin, Blairsville, Clarkesville, Cleveland, Cornelia,
Dahlonega, Dawsonville, Helen, Hiawassee, Ivylog, Juno, Macedonia,
Mineral Bluff, Morganton, Notla, Suches, Three Sisters Mountains,
Tiger, Toccoa, Turnerville, and Young Harris. The project will allow
Windstream to extend the reach of its broadband network to make
services available to 12,177 households, 743 businesses, and 58 anchor
institutions and provide broadband to last-mile wireline telephone
subscribers. The project also will allow Windstream to provide
broadband service to 61 community and public safety facilities in the
PFSA. The project will use industry standard ADSL2+ protocols that will
allow customers to enjoy broadband at speeds of up to 12 Mbps. The
project will create an estimated 73 jobs.
Hawaii
Big Island Broadband/Aloha Broadband, Inc.
Aloha Broadband Kohala
Last Mile Remote
$106,503 Loan
Aloha Broadband will provide affordable terrestrial fixed wireless
broadband service to the community of North Kohala on the Big Island of
Hawaii. The area is not currently served by any broadband service
provider. The network will make services available to 553 households,
35 businesses, and 9 anchor institutions. The project will create five
jobs.
Idaho
Coeur d'Alene Tribe
Coeur d'Alene Reservation FTTH Project
Last Mile Non-remote
$6,142,879 Loan
$6,142,879 Grant
The Coeur d'Alene Tribe will deploy an FTTH broadband system to
provide improved broadband service to anchor institutions, critical
community facilities, and approximately 3,770 unserved and underserved
households in the communities of DeSmet, Plummer, Tensed, and Worley.
The project will include service to isolated farms and rural home sites
on the Coeur d'Alene Indian Reservation in northern Idaho. The network
will make services available to 429 businesses and 21 anchor
institutions and will create 30 jobs.
Midvale Telephone Exchange, Inc.
MTE Last Mile Broadband Connections Initiative Stanley Service Area
Last Mile
$380,751 Loan
$888,420 Grant
Midvale Telephone Exchange, Inc., will offer last-mile broadband
service speeds of at least 20 Mbps in the rural town of Stanley using
FTTH technology. The network will make services available to 205
households, 31 businesses, and 6 anchor institutions. The project will
create or save 10 jobs.
Potlatch Telephone Company
Potlatch Telephone Company: Broadband Project to Serve Rural
Unserved Establishments
Last Mile
$2,013,722 Grant
Potlatch Telephone Company (Potlatch Tel), a subsidiary of TDS
Telecom, will provide high-speed broadband service to unserved premises
in 100 percent rural Idaho. The project will serve five PFSAs with four
communities. These PFSAs have 306 premises (296 households and 10
businesses) with no access to broadband service. Potlatch Tel is the
State-certified ILEC in Idaho. As engineered, the network will deploy
Ethernet-over-copper technology, provide VDSL2 access devices packaged
in an FTTN configuration, upgrade access in the central office to
support the extension of the broadband networks to these remote areas,
use PON FTTH where economically feasible, and allow future PON upgrades
without needing to rebuild the transport routes. The target speed is 20
Mbps (upstream and downstream combined) or more DSL service. This
project will create or save 53 jobs.
Illinois
Cellular Properties, Inc.
Eastern Illinois Broadband Deployment
Last Mile
$6,132,260 Loan
$6,132,260 Grant
Cellular Properties, Inc. (CPI) will upgrade an existing wireless
network to 3G wireless to provide mobile and fixed wireless broadband
to extremely rural and predominantly underserved areas of east central
Illinois. The project will deploy FTTT where economically feasible to
provide an eventual migration path to 4G/LTE. Initially, the 3G network
will offer speeds of 7.2 Mbps downstream and 3.6 Mbps upstream. The
three PFSAs are 99 percent rural and cover 11 counties and 36
communities. The communities include 26,605 households, 7,123
businesses, and 704 anchor institutions. CPI will upgrade to a 3G
network through an overlay on existing cell sites, coupled with a build
of new cell sites. The PFSAs constitute 48 of the 100 towers CPI plans
to construct or upgrade to a 3G universal mobile telecommunications
system. The project will create 267 jobs.
Convergence Technologies, Inc.
CTI Rural Open Access WiMAX Network
Last Mile
$1,434,375 Loan
$4,303,125 Grant
Convergence Technologies, Inc., will offer last-mile wireless
broadband and VoIP in Cook, Kankakee, and Will counties in Illinois and
Lake, Newton, and Porter counties in Indiana. The project will utilize
WiMAX technology as a platform to deliver broadband service speeds of
up to 11 Mbps. The network will make services available to 43,755
households, 9,497 businesses, and 3 anchor institutions. The project
will create or save 26 jobs.
Norlight, Inc.
Illinois VDB Network Expansion
Last Mile
$3,311,324 Loan
$7,726,423 Grant
Norlight, Inc., will implement the Illinois VDB Network Expansion
project to provide a wireless network to 13 unserved and underserved
areas in central Illinois. This fixed wireless deployment will consist
of a network of 72 towers providing highspeed broadband of greater than
5 Mbps. Counties covered include all or parts of Bond, Calhoun, Cass,
Christian, Fayette, Greene, Jersey, Macoupin, Montgomery, Morgan, Pike,
Scott, and Shelby. The network will make services available to 75,253
households, 9,737 businesses, and 804 anchor institutions. The project
will create or save 36 jobs.
Shawnee Telephone Company
Shawnee's FTTH Project: Focused Economic Revitalization and
Sustainable Transformation of Southern Illinois
Last Mile
$6,249,989 Loan
$1,102,940 Grant
Shawnee Telephone Company will deploy an FTTH network capable of 1
Gbps broadband service speeds in PFSAs that rank among the lowest in
per household income and the highest in unemployment in southern
Illinois. The network will make services available to 1,209 households,
438 businesses, and 35 anchor institutions. The project will create 91
jobs.
Utopian Wireless Corporation
Utopian Bushnell WiMAX Project
Last Mile
$66,091 Loan
$198,271 Grant
Utopian Wireless Corporation will provide 4G wireless broadband
service to underserved communities near Bushnell. The PFSA is rural and
covers approximately 1,481 households, 102 businesses, and 32 anchor
institutions. Utopian will deploy a broadband wireless system that
features Motorola Mobile WiMAX technology for efficient air interface
optimized for IP, built-in support for advanced antenna technologies
like MIMO, and quality-of-service controls that enable differentiated
services and open access. The system includes WiMAX access points,
wireless and wired backhaul, ASN-GW, CSN, and an IP core that supports
authentication and traffic routing to application servers and the
Internet. Utopian will offer tiered services with average minimum
downlink speeds of at least 1.8 Mbps. The project will create 10 jobs.
Utopian Wireless Corporation
Utopian Cairo WiMAX Project
Last Mile
$68,686 Loan
$206,055 Grant
The Utopian Cairo WiMAX project will make available advanced 4G
wireless broadband service to underserved communities in and around
Cairo. The PFSA includes the 62914 ZIP code area in Alexander County,
where Cairo is the county seat. The PFSA is rural and covers
approximately 1,746 households, 87 businesses, and 43 anchor
institutions. Using licensed 2.5 GHz spectrum, Utopian will deploy a
broadband wireless system that features Motorola Mobile WiMAX
technology, which offers several advantages over other wireless
technologies, including a highly efficient air interface optimized for
IP, built-in support for advanced antenna technologies like MIMO, and
quality-of-service controls that enable differentiated services and
open access. The project will create 10 jobs.
Utopian Wireless Corporation
Utopian Flora WiMAX Project
Last Mile
$129,714 Loan
$389,141 Grant
Utopian Wireless Corporation will provide 4G wireless broadband
service to underserved communities near Flora. The rural PFSA covers
approximately 2,791 households, 276 businesses, and 86 anchor
institutions. Utopian will deploy a broadband wireless system that
features Motorola Mobile WiMAX technology for efficient air interface
optimized for IP, built-in support for advanced antenna technologies
like MIMO, and quality-of-service controls that enable differentiated
services and open access. The system includes WiMAX access points,
wireless and wired backhaul, ASN-GW, CSN, and an IP core that supports
traffic authentication and routing to application servers and the
Internet. Utopian will offer tiered services with average minimum
downlink speeds of at least 1.8 Mbps. Utopian will hire full-time local
staff in the PFSA, including up to three sales people to prepare for
launch. The project will create 10 jobs.
Utopian Wireless Corporation
Utopian Monmouth WiMAX Project
Last Mile
$150,063 Loan
$450,189 Grant
The Utopian Monmouth WiMAX project will make available advanced 4G
wireless broadband service to underserved communities in the Monmouth
area. The PFSA includes the 61462 ZIP code area in Warren County, where
Monmouth is the county seat. The PFSA covers 4,419 households, 290
businesses, and 95 anchor institutions. Using licensed 2.5 GHz
spectrum, Utopian Wireless Corporation will deploy a broadband wireless
system that features Motorola Mobile WiMAX technology. The average
minimum downlink speeds for Utopian Wireless subscribers will be at
least 1.8 Mbps. The project will create 10 jobs.
Utopian Wireless Corporation
Utopian White Hall WiMAX Project
Last Mile
$63,594 Loan
$190,780 Grant
The Utopian White Hall WiMAX project will make available advanced
4G wireless broadband service to underserved communities in and around
White Hall. The PFSA includes the 62092 ZIP code area in Greene County.
The PFSA is rural and covers 1,224 households, 147 businesses, and 36
anchor institutions. Utilizing licensed 2.5 GHz spectrum, Utopian will
deploy a broadband wireless system that features Motorola Mobile WiMAX
technology. WiMAX offers a number of advantages over other wireless
technologies, including a highly efficient air interface optimized for
IP, built-in support for advanced antenna technologies like MIMO, and
quality-of-service controls that enable differentiated services and
open access. The project will create 10 jobs.
Indiana
Camden Telephone Company, Inc.
Camden Telephone Company, Inc.: Broadband Project to Serve Rural
Unserved Establishments
Last Mile
$1,089,955 Grant
Camden Telephone Company, Inc. (Camden Tel), a subsidiary of TDS
Telecom, will bring high-speed broadband service to unserved premises
in its rural franchise service territory. Camden Tel is the State-
certified ILEC in Indiana. The project will serve five PFSAs, located
within its franchise service territory, which are 100 percent rural and
include three communities. This project will build a broadband network
that will make services available to 326 rural unserved premises (309
households and 17 businesses) to provide them with access to high-speed
broadband service (20 Mbps upstream and downstream combined). The
project will provide DSL broadband capability to unserved premises and
deliver broadband high-speed capabilities of 20 Mbps (upstream and
downstream combined). The project will deploy Ethernet-over-copper
technology, provide VDSL2 access devices that are packaged in an FTTN
configuration, and upgrade access in the central office to support the
extension of the broadband networks to these remote areas. The project
will use PON FTTH where economically feasible and allow for future PON
upgrades without needing to rebuild the transport routes. The project
will create or save 29 jobs.
Convergence Technologies, Inc.
CTI Rural Open Access WiMAX Network
Last Mile
$1,378,125 Loan
$4,134,375 Grant
Convergence Technologies, Inc., will offer last-mile wireless
broadband and VoIP in Cook, Kankakee, and Will counties in Illinois and
Lake, Newton, and Porter counties in Indiana. The project will utilize
WiMAX technology as a platform to deliver broadband service speeds of
up to 11 Mbps. The network will make services available to 42,039
households, 9,124 businesses, and 3 anchor institutions. The project
will create or save more than 25 jobs.
DigitalBridge Communications Corp.
Round 2: IN-Franklin Last Mile
Last Mile
$397,224 Loan
$397,224 Grant
DigitalBridge Communications Corp., will provide 4G broadband
service to unserved and underserved portions of Franklin County. The
project will utilize last-mile broadband access via fixed and mobile
WiMAX technology. Service will include Internet access and VoIP service
speeds of up to 4 Mbps. The network will make services available to
2,673 households, 266 businesses, and 41 anchor institutions. The
project will create or save six jobs.
Home Telephone Company, Inc.
Home Telephone Company, Inc.: Broadband Project to Serve Rural
Unserved Establishments
Last Mile
$416,743 Grant
Home Telephone Company, Inc. (Home Tel), a subsidiary of TDS
Telecom, will bring high-speed broadband service to unserved premises
in its rural franchise service territory. Home Tel is the
Statecertified ILEC in Indiana. The project will serve two 100 percent
rural PFSAs, which have 178 premises (176 households and 2 businesses)
with no access to broadband service. The project will build a network
to provide access to high-speed broadband service (20 Mbps upstream and
downstream combined). The network will deploy Ethernet-over-copper
technology, provide VDSL2 access devices that are packaged in an FTTN
configuration, upgrade access in the central office to support the
extension of the broadband networks to these remote areas, use PON FTTH
where economically feasible, and allow for future PON upgrades without
needing to rebuild the transport routes. The project will create or
save 11 jobs.
Sunman Telecommunications, Inc.
Sunman 700-MHz WiMAX Wireless Broadband Plan
Last Mile Non-remote
$5,694,611 Loan
$5,694,611 Grant
Sunman Telecommunications will create a 700 MHz WiMAX build-out
plan to serve rural communities within Indiana. This project will
provide needed broadband service to households, businesses, and key
community organizations in underserved rural communities. About 1
percent of this network will also serve a small area in Kentucky. The
network will make services available to 52,657 households, 11,025
businesses, and 135 anchor institutions. The project will create 25
jobs.
Tipton Telephone Company, Inc.
Tipton Telephone Company, Inc.: Broadband Project to Serve Rural
Unserved Establishments
Last Mile
$1,011,971 Grant
Tipton Telephone Company, Inc. (Tipton Tel), a subsidiary of TDS
Telecom, will bring high-speed broadband service to unserved premises
in its rural franchise service territory. Tipton Tel is the State-
certified ILEC in Indiana. The project will serve three 100 percent
rural PFSAs, which include two communities with 382 premises (332
households and 50 businesses) with no access to any broadband service.
As engineered, the network will deploy Ethernet-over-copper technology,
provide VDSL2 access devices that are packaged in an FTTN
configuration, upgrade access in the central office to support the
extension of the broadband networks to these remote areas, use PON FTTH
where economically feasible, and allow for future PON upgrades without
needing to rebuild the transport routes. Target speed to unserved
customers is at 20 Mbps (upstream and downstream combined). The project
will create or save 27 jobs.
Tri-County Telephone Company, Inc.
Tri-County Telephone Company, Inc.: Broadband Project to Serve
Rural Unserved Establishments
Last Mile
$593,273 Grant
Tri-County Telephone Company, Inc. (Tri-County Tel), a subsidiary
of TDS Telecom, will bring high-speed broadband service to unserved
premises in its rural franchise service territory. Tri-County Tel is
the State-certified ILEC in Indiana. The project will serve three 100
percent rural PFSAs in its franchise service territory, which includes
five communities. Within the PFSAs, there are 245 premises (234
households, 10 businesses, and 1 anchor institution) with no access to
broadband service. The project will deploy Ethernet-over-copper
technology, provide VDSL2 access devices that are packaged in an FTTN
configuration, upgrade access in the central office to support the
extension of the broadband networks to these remote areas, use PON FTTH
where economically feasible, and allow for future PON upgrades without
needing to rebuild the transport routes. The target speed to unserved
customers is 20 Mbps (upstream and downstream combined). The project
will create or save 16 jobs.
Iowa
Breda Telephone Corporation
Breda and Lidderdale Town and Rural Fiber-to-the-Premises Overbuild
Last Mile
$783,572 Loan
$1,828,337 Grant
Breda Telephone Corporation will overbuild with FTTP two of its
seven rural ILEC exchanges, which are adjacent to each other in west
central Iowa. The overbuild would allow high-speed Internet and video
services to reach all of the customers in the Breda and Lidderdale
exchanges, supplementing their present landline phone services. The
network will make services available to 609 households, 77 businesses,
and 3 anchor institutions. The project will create 56 jobs.
Clear Lake Independent Telephone Company, Inc.
Clear Lake Independent Telephone Company: Fiber-to-the-Home
Broadband Deployment Project
Last Mile
$2,373,138 Loan
$5,537,324 Grant
Clear Lake Independent Telephone Company, Inc., will deploy FTTH
broadband as a key part of the infrastructure development needed to
drive and sustain economic growth and community vitality. The project
will serve 3,991 households, 342 businesses, and 22 anchor
institutions, with 893 households, 20 businesses, and 1 anchor
institution in the PFSA. Service tiers will run from 3 to 20 Mbps. The
network design uses PON infrastructure over existing Calix Networks
systems. Existing systems for POTS, data, and video services will be
integrated with the new fiberoptic network. The project will create two
jobs.
C-M-L Telephone Cooperative Association
Meriden and Archer Fiber-to-the-Home Project
Last Mile Non-remote
$1,519,225 Grant
C-M-L Telephone Cooperative Association will deploy FTTH technology
to provide broadband service via fiber-optic network to rural Iowa
communities, including Archer and Meriden. The C-M-L Telephone
Cooperative Association will offer services that include high-speed
Internet exceeding 20 Mbps, digital television, and telephone service.
The network will make services available to 285 households, 14
businesses, and 2 anchor institutions.
Eastlight, LLC
Southeast Iowa Rural Wireless Broadband
Last Mile Non-remote
$3,836,926 Loan
Eastlight, LLC will serve more than 80 small rural communities with
high-speed, affordable Internet using wireless technology. The
Southeast Iowa Rural Wireless Broadband project will extend highspeed
broadband coverage into villages, towns, and unincorporated areas of 12
Iowa counties across 6,226 square miles with 144,000 residents in
unserved and underserved areas. The network will make services
available to 61,236 households, 31,014 businesses, and 370 anchor
institutions. The project will create an estimated 40 jobs.
Ellsworth Cooperative Telephone Association
Ellsworth Fiber-to-the-Home Broadband Deployment Project
Last Mile
$1,580,609 Loan
$3,688,087 Grant
Ellsworth Cooperative Telephone Association will provide high-speed
Internet service in the communities of Ellsworth and Garden City and
their surrounding rural areas via an FTTH network. The network will
make services available to 502 households, 305 businesses, and 8 anchor
institutions. The project will create one job.
F&B Communications, Inc.
F&B Communications FTTH Stimulus Project
Last Mile Non-remote
$1,628,588 Loan
$1,609,162 Grant
F&B Communications will deploy FTTH technology to provide advanced
broadband service via a high-speed fiber-optic network, with speeds
exceeding 20 Mbps, to the rural areas surrounding the Iowa communities
of Bennett, Delmar, and Lowden. The system will also allow for
expansion at a future date. The network will make services available to
444 households. The project will create an estimated 25 jobs.
Farmers' Telephone Company
Farmers' Telephone Company Fiber-to-the-Premises Overbuild
Last Mile
$9,367,926 Loan
$9,367,927 Grant
Farmers' Telephone Company will construct an FTTP network to
provide greater than 20 Mbps broadband access to households and
businesses in the exchange areas of Greene, Little Cedar, Marble Rock,
New Haven, Plymouth, Riceville, St. Ansgar, and Stacyville. The network
will make services available to 3,284 households, 148 businesses, and
22 anchor institutions. The project will create 255 jobs.
Grand River Mutual Telephone Corporation
Grand River Mutual Fiber-to-the-Home Broadband Deployment Project--
Service Area 4
Last Mile
$2,788,293 Loan
$6,506,016 Grant
Grand River Mutual Telephone Corporation will provide broadband
service to the towns of Lorimor, Murray, and Thayer and their
surrounding rural areas via an FTTH network. The network will make
services available to 1,074 homes, 498 businesses, and 10 anchor
institutions. The project will create 22 jobs.
Grand River Mutual Telephone Corporation
Grand River Mutual Fiber-to-the-Home Broadband Deployment Project--
Service Area 5
Last Mile
$5,108,257 Loan
$11,919,267 Grant
Grand River Mutual Telephone Corporation will provide broadband
service to the towns of Allerton, Corydon, Lineville, and Millerton,
Iowa and Powersville, Missouri and their surrounding rural areas. The
network will make services available to 1,677 households, 285
businesses, and 30 anchor institutions along the Iowa-Missouri border.
The project will create 34 jobs.
Hospers Telephone Exchange, Inc.
HTC Fiber-to-the-Home Broadband Deployment Project
Last Mile
$2,497,621 Loan
$5,827,781 Grant
Hospers Telephone Exchange, Inc., will serve one PFSA in the town
of Hospers and its surrounding rural areas in Lyon, O'Brien, Osceola,
and Sioux counties. The network in this PFSA will make services
available to 859 households, 168 businesses, and 9 anchor institutions.
Hospers will provide voice or POTS, Internet access, and video services
over a GPON FTTH. Hospers will use connections to FiberNet to provide
high-bandwidth Internet connectivity. Customers will have an
uninterruptible power supply and an optical network terminal installed
on premises to convert the fiber-based access network to the copper-
based systems used in the home. The Hospers Area Development
Corporation currently finds it difficult to serve the needs of local
businesses and attract new business development to the area, in part
because it lacks an adequate broadband infrastructure. The project will
aid economic development in the communities it serves by providing
faster connections to businesses. The project will create or save an
estimated eight jobs.
Iowa Telecommunications Services, Inc.
Connecting Rural Iowa: High-Speed Broadband Expansion 1
Last Mile
$5,163,935 Grant
Iowa Telecommunications Services, Inc. (Iowa Telecom), an ILEC,
will provide an FTTN network to deliver broadband service using DSL
technology. In the 42 PFSAs that comprise this last-mile network, Iowa
Telecom will establish new DLC/DSL nodes to expand high-speed broadband
capability to deliver broadband speeds of 3 Mbps up to 15 Mbps for
residential and business customers. The project will make services
available to approximately 2,908 households and 7,367 businesses.
During the initial 5-year period, some of the FTTN fiber will be used
for backhaul facilities for multiple wireless carriers as they expand
more deeply into rural markets. The project will create 21 jobs.
Iowa Telecommunications Services, Inc.
Connecting Rural Iowa: High-Speed Broadband Expansion 2
Last Mile
$12,236,836 Grant
Iowa Telecommunications Services, Inc. (Iowa Telecom), an ILEC,
will provide an FTTN network to deliver broadband service using DSL
technology. Iowa Telecom will establish new DLC/DSL nodes to expand
high-speed broadband capability to 80 PFSAs that comprise this last-
mile network to deliver broadband speeds of 3 Mbps up to 15 Mbps for
residential and business customers. This project will make services
available to approximately 3,717 households and 14,291 businesses.
During the initial 5-year period, some of the FTTN fiber will be used
to provide backhaul facilities for multiple wireless carriers as they
expand more deeply into rural markets. The project will create 21 jobs.
La Motte Telephone Company
Springbrook Wireless Internet Project
Last Mile Non-remote
$187,815 Loan
$187,815 Grant
La Motte Telephone Company will provide wireless broadband service
from a 300-foot tower and WiMAX installation. This project is expected
to primarily serve homes in an underserved rural area. The network will
make services available to 264 households, 6 businesses, and 2 anchor
institutions. The project will create four jobs.
Municipal Communications Utility of the City of
Cedar Falls (Cedar Falls Utilities) CFU Broadband Expansion
Last Mile
$873,433 Grant
Cedar Falls Utilities will offer broadband service speeds of up to
50 Mbps in rural Black Hawk, Butler, and Grundy counties. The new
broadband system will employ a combination of state-of-the-art
broadband wireless and FTTP technologies in an area that is 90 percent
unserved. The network will make services available to 701 households
and 259 businesses. The project will create 11 jobs.
Southwest Telephone Exchange, Inc.
Southwest Iowa Fiber-to-the-Home Broadband Deployment Project
Last Mile
$1,796,199 Loan
$4,191,131 Grant
Southwest Telephone Exchange, Inc., will provide broadband service
to the towns of Emerson, Henderson, Imogene, and their surrounding
rural areas. The network will make services available to 587
households, 55 businesses, and 9 anchor institutions in Fremont, Mills,
Montgomery, Page, and Pottawattamie counties. The project will create
six jobs.
Winnebago Cooperative Telecom Association
WCTA 2010 Broadband Initiative
Last Mile
$8,245,610 Loan
$8,245,610 Grant
Winnebago Cooperative Telecom Association (WCTA) will provide last-
mile high-speed wireline broadband FTTP to rural areas in north-central
Iowa and south-central Minnesota. The infrastructure will support
existing rural wireless tower facilities for future growth and
bandwidth expansion to 3G and 4G networks and beyond. The project will
build on a previously deployed FTTN system. The PFSA serves portions of
21 communities in 5 counties in Iowa and 2 counties in Minnesota. This
project will make services available to 2,839 premises, including 138
mainly home businesses, and will offer broadband service at combined
speeds ranging from 5 Mbps to 25 Mbps. WCTA will also offer digital
video and unlimited local voice services. The project will create or
save 40 jobs.
Kansas
H&B Communications, Inc.
FTTH--Rural Ellinwood and Claflin, Kansas
Last Mile
$1,965,455 Loan
$4,586,064 Grant
H&B Communications, Inc., will provide high-speed broadband to the
rural communities surrounding Claflin and Ellinwood. The network will
serve 751 households, 91 businesses, and 23 anchor institutions. The
project will create five jobs.
Home Communications, Inc.
Rural Canton FTTP
Last Mile
$601,464 Loan
$1,403,415 Grant
Home Communications, Inc. (HCI) will upgrade its network,
installing FTTP facilities to eliminate a last-mile bottleneck in rural
areas of Canton. HCI provides broadband service to more than 1,200
customers in Kansas. This upgrade will provide access to higher
bandwidth for its customers. HCI already offers FTTP service in the
town portion of this exchange; therefore, the town of Canton is
excluded from this PFSA. None of the premises in this PFSA has access
to 5 Mbps service (upstream and downstream combined). The project will
make services available to 253 premises (219 households, 24 businesses,
and 10 anchor institutions). HCI will implement FTTP using GPON,
International Telecommunication Union, and Full Service Access Networks
G.984 standards. This project will create or save an estimated three
jobs.
Iowa Tribe of Kansas and Nebraska
Iowa Tribe of Kansas and Nebraska Fiber-to-the-Premise
Last Mile
$764,833 Grant
The Iowa Tribe of Kansas and Nebraska will build an FTTP network on
its federally recognized reservation. The network will be the first of
its type in the area. The FTTP network will cover 100 percent of the
PFSA and make services available to 68 households, 12 businesses, and
10 anchor institutions. Although the public service entities are under
the jurisdiction of the Iowa Tribe of Kansas and Nebraska, they often
provide services to the surrounding communities. The project will
provide Internet access using a buried FTTP network for high
reliability and exceptional capacity and speed. Broadband service
speeds will be up to 20 Mbps (15 Mbps downstream and 5 Mbps upstream).
The project will use a technological agnostic distribution system to
increase the economic efficiency of its network. The project will
create three jobs, and an advanced network will generate economic
development and job opportunities in the area.
JBN Telephone Company, Inc.
JBN East Towns
Last Mile
$1,000,568 Loan
$2,323,576 Grant
JBN Telephone Company, Inc., will deploy FTTP broadband throughout
the towns of Corning, Goff, Havensville, Netawaka, Soldier, and
Wetmore. The network will serve 427 households, 29 businesses, and 21
anchor institutions. The project will create three jobs.
Madison Telephone, LLC
Madison-Lamont FTTP
Last Mile Non-remote
$3,519,750 Loan
$3,519,750 Grant
Madison Telephone, LLC will deploy FTTP technology throughout its
certified service area, including the telephone exchanges of Madison
and Lamont. The network will make services available to 601 households,
81 businesses, and 40 anchor institutions. The project will create nine
jobs.
Peoples Telecommunications, LLC
Peoples Telecommunications Rural FTTP
Last Mile
$3,891,062 Loan
$3,891,061 Grant
Peoples Telecommunications, LLC (PTL) will upgrade the LaCygne
telephone exchange to eliminate the last-mile bottleneck in the rural
area and provide access to high-speed broadband for premises with no
broadband service. The project will make services available to 760
households, 50 businesses, and 7 anchor institutions in this rural
area. PTL will offer high-speed data and voice services over FTTP
facilities at speeds of 15 Mbps downstream and 5 Mbps upstream. PTL
provides broadband service to more than 500 customers in the LaCygne
exchange and extending coverage with this project will promote rural
economic development. The project will create or save 10 jobs.
Rural Telephone Service Co., Inc.
Rural Opportunities Delivered
Last Mile Non-remote
$51,612,842 Loan
$49,588,807 Grant
Rural Telephone Service Co., will provide service in a 4,600-
square-mile area of western Kansas that is 99.5 percent unserved and
underserved. The roject will provide a rural infrastructure required
for economic stability, education, and healthcare. Rural Telephone
leads a team of seven companies with this shovel-ready project. A
portion of this project will also be implemented in Nebraska. The
network will make services available to 18,342 households, 4,372
businesses, and 335 anchor institutions. The project will create an
estimated 179 jobs.
South Central Telephone Association, Inc.
Lake City & Sun City Rural FTTH
Last Mile Remote
$871,200 Grant
South Central Telephone Association, Inc., will bring FTTH
broadband service to all unserved establishments in the exchanges of
Lake City and Sun City. The network will make services available to 79
households, 8 businesses, and 1 anchor institution. The project will
create seven jobs.
South Central Wireless, Inc.
South Central Wireless--Attica, Kansas Fiber-to-the-Premise
Last Mile
$560,000 Loan
$557,621 Grant
South Central Wireless, Inc., will construct an FTTP infrastructure
for Attica to offer voice and high-speed service ranging from 1.5 Mbps
to 20 Mbps. The network will serve 314 households, 41 businesses, and
10 anchor institutions. The project will create nine jobs.
Totah Communications, Inc.
Totah Broadband Expansion Project
Last Mile Non-remote
$2,426,053 Loan
$1,830,180 Grant
Totah Communications, Inc., will upgrade existing copper-fed DSL
nodes to fiber-fed DSL nodes. This project will also install additional
fiber-fed DSL nodes throughout the service area. The total route will
cover approximately 152 miles and will serve approximately 800 new
customers. A portion of this project will also be implemented in
Oklahoma. The network will make services available to 422 households, 9
businesses, and 8 anchor institutions. The project will create an
estimated 25 jobs.
Wave Wireless, LLC
Wave Wireless Southeast Kansas Broadband Expansion Project
Last Mile
$619,147 Loan
$1,857,441 Grant
Wave Wireless will expand its high-speed broadband access to the
rural unserved and underserved southeast Kansas PFSA. The project,
covering 849 square miles, has an overall household density of 3.6 per
square mile. The project will make services available to 2,890
households, 2,106 businesses, and 72 anchor institutions using a
combination of WiMAX and 900 MHz systems. Wave Wireless will deliver
significant upgrades using WiMAX technology and will build an
additional 6 towers on its existing network of 19 towers and will lease
1 tower location. The upgraded equipment will provide higher service
tiers at 2.5 Mbps and 768 Kbps. The project will create 12 jobs.
Kentucky
Foothills Rural Telephone Cooperative Corporation, Inc.
Foothills Broadband Initiatives Project
Last Mile
$6,291,744 Loan
$14,680,738 Grant
Foothills Rural Telephone Cooperative Corporation, Inc., will
provide FTTH to portions of Lawrence and Magoffin counties in the
Foothills service area. The PFSAs lack access to high-speed broadband
data and quality video feeds that include local content. The PFSAs in
this project will make services available to 2,247 households, 780
businesses, and 8 anchor institutions. The access network will use FTTH
technology to deliver broadband and will use GPON standards with 2.48
Gigabit rates downstream and 1.2 Gigabit rates upstream. The project
will create 326 jobs.
Highland Telephone Cooperative, Inc.
Highland Telephone Cooperative FTTH Build-Out
Last Mile
$4,820,464 Loan
$14,461,393 Grant
Highland Telephone Cooperative, Inc. (HTC) will provide state-of-
the-art communication services while enhancing broadband communication
options to the citizens of McCreary, Morgan, and Scott counties in
rural Tennessee and Kentucky. HTC will construct an FTTH wireline
fiber-optic cable network, configured in PON architecture, able to
support speeds in excess of 20 Gbps for all subscribers in its exchange
boundaries. The network will make services available to 6,278
households, 532 businesses, and 31 anchor institutions, providing
infrastructure for affordable bandwidth. The project will ensure HTC's
ability to continue to operate as a major employer, provide highspeed
broadband services critical to the economic growth of the region, and
ensure the communications services for this rural community are as
reliable and competitive as those in large cities in Tennessee and
Kentucky. The project will create 21 jobs.
Leslie County Telephone Company
Leslie County Telephone Company: Broadband Project to Serve Rural
Unserved Establishments
Last Mile
$6,169,295 Grant
Leslie County Telephone Company (Leslie County Tel) will bring
high-speed broadband service to unserved premises in its rural
franchise service territory. Leslie County Tel, a subsidiary of TDS
Telecom, is the State-certified ILEC in Kentucky. The project is
designed to serve nine PFSAs in its franchised service territory, which
is rural and includes eight communities. These PFSAs have 1,591
premises (1,517 households, 38 businesses, and 36 anchor institutions)
that currently have no access to broadband service. Leslie County Tel
has built a broadband network that currently is capable of serving the
majority of these premises in several of the core communities, but the
surrounding area, much of which is sparsely populated, lacks broadband
access due to the high cost of building such a network. In addition,
facilities-based terrestrial broadband service is unavailable to the
premises in the PFSAs. This project will bring access to high-speed
broadband service (20 Mbps upstream and downstream combined). The
network is also engineered so that it can be easily upgraded at a
reasonable cost to meet future needs. The project will create or save
162 jobs.
Mikrotec CATV, LLC
Connect Eolia, Oven Fork, and Partridge
Last Mile
$829,813 Grant
Mikrotec CATV, LLC will provide broadband Internet service to the
small rural communities of Eolia, Oven Fork, and Partridge in Letcher
County, tucked in a valley amidst rugged mountain terrain deep in the
heart of the Appalachian coalfields. The project area covers 18 square
miles and will serve 800 households, 15 businesses, and 5 anchor
institutions. The system design uses wireline technology, both fiber-
optic cable and coaxial cable. The hybrid system includes HFC, at least
750 MHz node + 6 actives to allow speeds of up to 6 Mbps downstream and
1 Mbps upstream. The project will create or save 14 jobs.
Mountain RTCC
Mountain RTCC ILEC Broadband
Last Mile Non-remote
$39,843,535 Loan
$38,281,044 Grant
Mountain RTCC will deploy a fiber cable-based broadband network in
Elliott, Menifee, Morgan, and Wolfe counties. This network will provide
broadband service speeds above 20 Mbps. Affordable broadband access in
these counties will enhance economic development and workforce
training. The network will make services available to 13,013
households, 2,335 businesses, and 65 anchor institutions. The project
will create an estimated 49 jobs.
Peoples Rural Telephone Cooperative Corp, Inc.
Broadband Infrastructure Investment in Persistent Poverty Counties:
Jackson and Owsley Counties, KY
Last Mile
$7,654,254 Loan
$17,859,928 Grant
The Peoples Rural Telephone Cooperative, Inc., will build FTTP
facilities in Cow Creek, Jackson, and Owsley counties to provide
residents, businesses, and critical community facilities with high-
speed broadband service. The project will make services available to
4,747 households, 111 businesses, and 33 anchor institutions and will
offer broadband service speeds ranging from 1.5 Mbps to 18 Mbps. The
project design is an FTTP overlay, based on the use of Occam Network's
GPON equipment and uses existing equipment cabinets and buildings to
house the OLT and OSN equipment. The project will create 46 jobs.
Salem Telephone Company
Salem Telephone Company: Broadband Project to Serve Rural Unserved
Establishments
Last Mile
$1,934,474 Grant
Salem Telephone Company (Salem Tel), a subsidiary of TDS Telecom,
will bring high-speed broadband service to unserved premises in its
rural franchise service territory. Salem Tel is the State-certified
ILEC in Kentucky. The project will serve three PFSAs that include five
communities. This project will build a broadband network that will make
services available to 551 rural unserved premises (529 households, 15
businesses, and 7 anchor institutions) that have no access to broadband
service. Salem Tel has built a broadband network that is capable of
serving the majority of these premises in several of the core
communities, but the surrounding area, much of which is sparsely
populated, lacks broadband access due to the high cost of building such
a network. In addition, facilities-based terrestrial broadband service
is unavailable to the premises in the PFSAs. This project will provide
access to high-speed broadband service (20 Mbps upstream and downstream
combined). The network is also engineered so that it can be easily
upgraded at a reasonable cost to meet future needs. The project will
create or save 51 jobs.
Thacker-Grigsby Telephone Company, Inc.
Breathitt County Broadband
Last Mile
$2,222,542 Loan
$5,185,932 Grant
Thacker-Grigsby Telephone Company, Inc., will deploy a fiber-optic
network in portions of Breathitt County. The network will serve 1,214
households, 60 businesses, and 34 anchor institutions. The project will
create 61 jobs.
West Kentucky Rural Telephone Cooperative Corporation, Inc.
West Kentucky and West Tennessee Broadband FTTH Initiative
Last Mile
$42,711,001 Loan
$42,710,999 Grant
West Kentucky Rural Telephone Cooperative Corporation, Inc. (WK&T)
will build a fiber-optic network to provide broadband infrastructure
for rural southwest Kentucky in the counties of Calloway, Carlisle,
Fulton, Graves, Hickman, and Marshall, and in the northwest Tennessee
counties of Henry, Obion, and Weakley. The project will make services
available to 11,980 households, 2,492 businesses, and 68 anchor
institutions. By installing fiber throughout the service areas,
broadband with speeds up to 20 Mbps will become more affordable. At the
conclusion of the project, WK&T expects to double its data subscribers
and have almost 90 percent of its customer base, more than 14,000
customers, on broadband, with data speeds averaging 1.5 Mbps or higher.
The project will create 110 jobs.
Windstream Corporation
Windstream Kentucky East, LLC 219
Last Mile
$27,644,292 Grant
Windstream Corporation will offer broadband service speeds at a
minimum of 6 Mbps in more than 80 rural communities by deploying DSLAMs
using standard ADSL2+. The network will make services available to
117,740 households, 10,329 businesses, and 574 anchor institutions. The
project will create or save 397 jobs.
Windstream Corporation
Windstream Kentucky East, LLC 220
Last Mile
$31,118,534 Grant
Windstream Corporation will offer broadband service speeds of up to
12 Mbps in more than 80 rural communities. The network will make
services available to 101,009 households, 8,156 businesses, and 682
anchor institutions. The project will create or save 513 jobs.
Windstream Corporation
Windstream Kentucky West, LLC
Last Mile
$951,445 Grant
Windstream Corporation will expand broadband service to unserved
customers in the rural Kentucky communities of Coxs Creek, Fort Knox,
Lebanon, Shepherdsville Northwest, and Shepherdsville Southeast. The
project will allow Windstream to extend the reach of its broadband
network to make services available to 3,490 households, 50 businesses,
and 4 anchor institutions. It will provide broadband to last-mile
wireline telephone subscribers. Windstream will provide broadband
service to community public service facilities in the PFSAs at
discounted rate packages for at least 3 years. Windstream will deploy
industry-standard DSLAM protocols to provide a minimum of 6.0 Mbps
downstream and 786 Kbps upstream data services. The DSLAMs will be
strategically deployed to reach the greatest number of unserved
customers over its existing wireline copper plant. The project will
create an estimated 53 jobs.
Louisiana
LBH, LLC
Rural Broadband Powered by Fiber
Last Mile Non-remote
$16,693,439 Loan
$16,691,939 Grant
LBH, LLC, a subsidiary of Cameron Communications, LLC, will expand
the existing FTTH system in Moss Bluff in the communities and
surrounding rural areas of Oakdale and Vinton. The project will provide
broadband, voice, and video services to unserved and underserved areas.
The network will make services available to 8,232 households, 444
businesses, and 22 anchor institutions. The project will create or save
an estimated 136 jobs.
Nexus Systems, Inc.
West Carroll Parish Infrastructure Project
Last Mile
$724,256 Grant
Nexus Systems, Inc., as part of a private-public partnership, will
implement the West Carroll Parish Infrastructure project to provide
fiber broadband service to unserved and underserved areas in
northeastern Louisiana. The technology will be a combination of
microwave and fiber connectivity. The network will tie into the middle-
mile LA Broadband Alliance-Infrastructure project by the LA Board of
Regents. The network will make services available to 4,427 households,
240 businesses, and 47 anchor institutions. The project will create or
save 11 jobs.
Northeast Louisiana Telephone Company, Inc.
Northeast Louisiana Telephone Co. FTTH & Broadband Project
Last Mile Non-remote
$8,124,600 Loan
$4,359,000 Grant
The Northeast Louisiana Telephone Company project will provide an
active Ethernet system with symmetrical broadband service speeds of 20
Mbps. The system will use buried FTTH to serve the communities of
Bonita and Collinston in Morehouse Parish. The network will make
services available to 1,627 households, 74 businesses, and 15 anchor
institutions. The project will create or save 22 jobs.
PRIDE Network, Inc.
North Shore Project
Last Mile
$18,461,417 Loan
$17,737,440 Grant
PRIDE Network, Inc., will deploy FTTP infrastructure, with a
wireless service-extension overlay, that will bring advanced broadband
service to rural communities in St. Helena, Tangipahoa, and Washington
parishes. The network will offer broadband service speeds between 20
and 100 Mbps. The network will make services available to 10,097
households, 2,978 businesses, and 172 anchor institutions. The project
will create or save an estimated 1,316 jobs.
Maine
Hartland and St. Albans Telephone Company
Hartland and St. Albans Telephone Company: Broadband Project to
Serve Rural Unserved Establishments
Last Mile
$2,009,522 Grant
The Hartland and St. Albans Telephone Company (Hartland and St.
Albans Tel), a subsidiary of TDS Telecom, will provide high-speed
broadband service to unserved premises in its rural Maine service
territory. The project will serve six 100 percent rural PFSAs that
include five communities. These PFSAs have 599 premises (568
households, 28 businesses, and 3 anchor institutions) with no access to
broadband service. Hartland and St. Albans Tel is the State-certified
ILEC in Maine. The network will deploy Ethernet-over-copper technology,
provide VDSL2 access devices packaged in an FTTN configuration, upgrade
access in the central office to support the extension of the broadband
networks to these remote areas, use PON FTTH where economically
feasible, and allow for future PON upgrades without needing to rebuild
the transport routes. The target speed is 20 Mbps (upstream and
downstream combined) or more DSL service. The project will create or
save 53 jobs.
Somerset Telephone Company, Inc.
Somerset Telephone Company: Broadband Project to Serve Rural
Unserved Establishments
Last Mile
$5,840,363 Grant
Somerset Telephone Company (Somerset Tel), a subsidiary of TDS
Telecom, will provide access to high-speed broadband service to
unserved premises in its 100 percent rural service territory in Maine.
The project will serve 20 PFSAs with 8 communities. These PFSAs have
1,468 premises (1,375 households, 73 businesses, and 20 anchor
institutions) with no access to broadband service. Somerset Tel is the
State-certified ILEC in Maine. The network will deploy Ethernet-over-
copper technology, provide VDSL2 access devices packaged in an FTTN
configuration, upgrade access in the central office to support the
extension of the broadband networks to these remote areas, use PON FTTH
where economically feasible, and allow for future PON upgrades without
needing to rebuild the transport routes. The target speed is 20 Mbps
(upstream and downstream combined) or more DSL service. The project
will create or save 153 jobs.
West Penobscot Telephone and Telegraph Company
West Penobscot Telephone and Telegraph Company: Broadband Project
to Serve Rural Unserved Establishments
Last Mile
$1,554,981 Grant
West Penobscot Telephone and Telegraph Company (West Penobscot
Tel), a subsidiary of TDS Telecom, will build a project to bring high-
speed broadband service to unserved premises in West Penobscot Tel's
rural franchise service territory. West Penobscot Tel is the State-
certified ILEC in Maine. The project will bring high-speed broadband
service to four PFSAs in its franchised service territory, which are
100 percent rural and include three communities. These PFSAs have 440
premises (428 households and 12 businesses) that have no access to
broadband service. West Penobscot Tel has built a broadband network
that is capable of serving the majority of these premises in several of
the core communities, but the surrounding area, much of which is
sparsely populated, lacks broadband access due to the high cost of
building such a network. In addition, facilities-based terrestrial
broadband service is unavailable to the premises in the PFSAs. This
project will provide access to high-speed broadband service (20 Mbps
upstream and downstream combined). The network is also engineered so
that it can be easily upgraded to meet future needs. The project will
create or save 41 jobs.
Maryland
Bloosurf, LLC
Delmarva Wireless Broadband
Last Mile
$1,600,000 Loan
$1,600,000 Grant
Bloosurf, LLC, in partnership with the University of Maryland
Eastern Shore, a historically black college, will build a wireless
last-mile network for the rural areas of Somerset, Wicomico, and
Worcester counties, as well as Smith Island. This network will connect
to the Maryland Broadband Cooperative optic fiber at four
interconnection points. The network will make services available to
50,545 households, 6,292 businesses, and 351 anchor institutions. The
project will create or save 22 jobs.
West Virginia PCS Alliance, LC
Rural Mobile Broadband Initiative--Maryland
Last Mile
$1,209,352 Grant
West Virginia PCS Alliance, LC and NTELOS Licenses Inc., both
subsidiaries of NTELOS Holdings Corporation, will expand West Virginia
PCS Alliance's existing wireless services to provide 3G mobile
broadband service in unserved rural portions of western Maryland and
south-central Pennsylvania, north of Hagerstown. The PFSAs comprise
eight communities, with more than 50 percent of the premises lacking
high-speed broadband service. The network will make services available
to 28,521 households, 3,306 businesses, and 704 anchor institutions.
The project will create or save nine jobs.
Massachusetts
Mid-Hudson Cablevision, Inc.
Last-Mile High Speed Broadband in Greene and Columbia Counties
Last Mile
$486,349 Grant
Mid-Hudson Cablevision, Inc., will provide high-speed broadband
access to unserved and underserved PFSAs in the Hudson Valley and
Catskill Mountain region between New York City and Albany. The network
will make services available to 1,170 households, 421 businesses, and
16 anchor institutions and will complete part of the region's 911
public safety system. The last-mile extensions will require
construction of 135 linear miles of FTTH on existing utility poles and
connection for a network of five fire towers. Another 341-square-mile
area will be reached by deploying 16 transmitting sites for wireless.
The PFSAs also cover four underserved communities. The company will
deploy 16 or more transmitting sites using Motorola Canopy equipment to
provide access speeds of 10 Mbps in line-of-sight areas and 4 Mbps in
dense foliage. The project will create or save 10 jobs.
Michigan
Air Advantage, LLC
Michigan Thumb Area Broadband Expansion Project II
Last Mile
$32,300,000 Loan
$31,950,000 Grant
Air Advantage, LLC will offer broadband service to last-mile
consumers in 13 counties that make up an area known as the Great Lakes
Bay Region and Thumb Area. The project will use a hybrid system of
fiber and wireless technologies to offer broadband service speeds in
excess of 3 Mbps. The network will make services available to 279,306
households, 21,302 businesses, and 4,011 anchor institutions. The
project will create or save an estimated 142 jobs.
Allband Communications Cooperative
Allband F.I.B.E.R. I: Federal Investment in Broadband for Economic
Recovery I
Last Mile
$8,622,754 Grant
Allband Communications Cooperative serves the Robbs Creek exchange,
an irregularly shaped 177-square-mile area southeast of Hillman and
north of Curran in Michigan. The project will bring high-speed
broadband and VoIP service to its members and customers in these
unserved rural areas. The project covers Alpena County and the
unincorporated communities of Lachine, Long Rapids, and Spratt, along
with the surrounding townships of Green, Long Rapids, Ossineke,
Wellington, and Wilson; a service area covering Alcona and Oscoda
counties and the unincorporated community of Curran, along with the
surrounding townships of Millen and Mitchell; and a service area
covering Montmorency County in the east-central part of Rust Township.
The network will make services available to 1,622 households, 95
businesses, and 9 anchor institutions and will offer broadband service
speeds of up to 2.5 Gbps downstream and 1.25 Gbps upstream. Allband
will deploy FTTH technology for its broadband system. The fiber-optic
cable infrastructure is designed to accomodate a GPON and Active
Ethernet network solutions. The project will create or save an
estimated 100 jobs.
Allband Communications Cooperative
Allband F.I.B.E.R. II: Federal Investment in Broadband for Economic
Recovery II
Last Mile
$1,107,903 Grant
Allband Communications Cooperative serves the Robbs Creek exchange,
an irregularly shaped 177-square-mile area southeast of Hillman and
north of Curran in Michigan. The project will bring high-speed
broadband and VoIP services to its members and customers in these
unserved rural areas. The project covers a service area that includes a
rural area in Alcona County and takes in the unincorporated communities
of Gustin and Mikado townships. The network will make services
available to 206 households, 20 businesses, and 2 anchor institutions
and will offer broadband service speeds of up to 2.5 Gbps downstream
and 1.25 Gbps upstream. Allband will deploy FTTH technology for its
broadband system. The fiber-optic cable infrastructure is designed to
accommodate a GPON and Active Ethernet network solutions. The project
will create or save 17 jobs.
Chatham Telephone Company
Last Mile Remote
$8,605,935 Grant
Chatham Telephone Company, a subsidiary of TDS Telecom, will bring
high-speed DSL service to remote, unserved households within its rural
service territory. The network is engineered to be easily upgraded to
meet future needs. The network will make services available to 878
households, 38 businesses, and 2 anchor institutions. The project will
create or save 170 jobs.
Climax Telephone Company
FTTx Broadband Service to Rural Climax, MI
Last Mile
$1,072,501 Loan
$2,144,998 Grant
Climax Telephone Company (CTC) ILEC will build facilities to offer
state-of-the-art triple-play services to the communities of Climax and
Scotts. CTC will overbuild the rural and underserved ILEC service
territory with FTTx and will build a new FTTP plant based on the GPON
standard of 2.5 Mbps downstream and 1.25 Mbps upstream. The network
will make services available to 781 households, 51 businesses, and 9
anchor institutions. This project will connect small underserved
communities with the municipal government, public safety, education,
and medical institutions. The project will create or save 47 jobs.
Communication Corporation of Michigan
Communication Corporation of Michigan: Broadband Project to Serve
Rural Unserved Establishments
Last Mile
$1,221,811 Grant
Communication Corporation of Michigan (CCM), a subsidiary of TDS
Telecom, will bring high-speed broadband service to unserved premises
in CCM's rural franchise service territory. CCM is the State-certified
ILEC in Michigan. The project is designed to serve three rural PFSAs
with two communities. These PFSAs have 288 premises (278 households and
10 businesses) that lack access to broadband service. This project will
build a broadband network to deliver access to high-speed broadband
service (20 Mbps upstream and downstream combined). The project will
deploy Ethernet-over-copper technology, provide VDSL2 access devices
that are packaged in an FTTN configuration, and upgrade access in the
central office to support the extension of the broadband networks to
these remote areas. It will use PON FTTH where economically feasible
and allow for future PON upgrades without needing to rebuild the
transport routes. The project will create or save 32 jobs.
Crystal Automation Systems, Inc.
Mid-Michigan Broadband ARRA Project
Last Mile
$7,949,227 Loan
$18,548,197 Grant
Crystal Automation Systems, Inc. (Casair) will provide broadband
access in a large area of mid-Michigan. Casair will build this project
by using 30 of its existing towers and backhauls and will install WiMAX
wireless gear to provide access to rural households. Casair will lease
18 additional towers, build 14 towers where none are available, and add
fiber-optic lines between towers to handle the extra bandwidth
required. The network will make services available to 58,848
households, 4,970 businesses, and 706 anchor institutions in Casair's
service areas 1 and 2. The project will create or save 144 jobs.
Island Telephone Company
Island Telephone Company: Broadband Project to Serve Rural Unserved
Establishments
Last Mile
$2,001,528 Grant
Island Telephone Company (Island Tel), a subsidiary of TDS Telecom,
will bring high-speed broadband service to unserved premises in Island
Tel's rural franchise service territory. Island Tel is the State-
certified incumbent ILEC in Michigan. The project is designed to serve
one PFSA, which has two communities that have no access to broadband
service. The network will make services available to 283 rural unserved
premises (245 households, 35 businesses, and 3 anchor institutions).
Island Tel has built a broadband network that is capable of serving the
majority of these premises in several of the core communities, but the
surrounding area, much of which is sparsely populated, lacks broadband
access due to the high cost of building such a network. In addition,
facilities-based terrestrial broadband service is unavailable to the
premises in the PFSAs. This project will provide access to high-speed
broadband service (20 Mbps upstream and downstream combined). The
network is also engineered so that it can be easily upgraded to meet
future needs. The project will create or save 53 jobs.
Southwest Michigan Communications
Southwest Michigan Communications--Paw Paw and Antwerp, MI FTTP
Last Mile Non-remote
$4,165,513 Loan
$4,165,512 Grant
Southwest Michigan Communications will construct an FTTP network
that will cover the rural areas of its competitive LEC and provide
advanced broadband service to the residents of the rural Paw Paw area.
The network will make services available to 1,452 households. The
project will create or save 14 jobs.
Minnesota
Arrowhead Electric Cooperative, Inc.
Arrowhead Electric Cooperative Fiber-to-the-Home Project
Last Mile
$4,841,245 Loan
$11,296,239 Grant
Arrowhead Electric Cooperative, Inc., will build a last-mile, open-
access, FTTH network to serve northeastern Cook County. Because of the
topography of the land and dense forestation, fixed wireless is not an
option. The wireline passive fiberoptic network that the company will
build will offer up to 100 Mbps symmetrical service. The network will
make services available to 4,545 households, 138 businesses, and 63
anchor institutions. The project will create or save an estimated 87
jobs.
Arvig Telephone Company
Arvig Telephone Company: Broadband Project to Serve Rural Unserved
Establishments
Last Mile
$5,048,168 Grant
Arvig Telephone Company, a subsidiary of TDS Telecom, will bring
high-speed broadband service to unserved premises in its rural
franchise service territory. The project will serve 12 rural PFSAs that
include 7 communities with 836 premises (768 households, 67 businesses,
and 1 anchor institution) with no access to broadband service. The
project will deliver broadband high-speed capabilities of 20 Mbps
(upstream and downstream combined). The network will deploy Ethernet-
over-copper technology, provide VDSL2 access devices that are packaged
in an FTTN configuration, upgrade access in the central office to
support the extension of the broadband networks to these remote areas,
use PON FTTH where economically feasible, and allow for future PON
upgrades without needing to rebuild the transport routes. The project
will create or save an estimated 133 jobs.
City of Windom
Southwest Minnesota Broadband Group
Last Mile Non-remote
$6,350,000 Loan
$6,350,250 Grant
The Southwest Minnesota Broadband Group project will deploy FTTP
infrastructure to eight rural communities throughout southwestern
Minnesota. The network will consist of a 125-mile fiber ring that will
connect the 8 communities and an FTTP infrastructure within the
communities that will support 3,649 households. The fiber network will
also be open to other providers for provision of wireless services,
dark fiber services, and competitive services. The network will make
services available to 292 businesses and 50 anchor institutions. The
project will create or save 52 jobs.
Farmers Mutual Telephone Company
Farmers Telephone-Lac qui Parle County FTTP Project
Last Mile
$4,826,478 Loan
$4,826,478 Grant
Farmers Mutual Telephone Company and Lac qui Parle County will
provide FTTP services to towns and townships in Lac qui Parle County.
The two entities are working in partnership to give many residents
their first opportunity to obtain high-speed Internet service and put
in place the infrastructure to support economic development. The
service area has two cities, Boyd and Dawson, and 15 townships over 339
square miles of unserved and underserved territory. The project will
construct an FTTP network that will make services available to every
home and business in the PFSA and utilize Calix GPON technology. The
network will make services available to 1,561 households, 165
businesses, and 12 anchor institutions. The project will create or save
110 jobs.
Federated Telephone Cooperative
Rural Appleton, MN
Last Mile
$630,289 Loan
$630,289 Grant
Federated Telephone Cooperative will build an FTTP system to deploy
voice, video, and data services to the Rural Appleton exchange. The
PFSA is primarily located in Swift County, with small portions in Big
Stone and Chippewa counties. The PFSA includes 152 households, 7
businesses, and 1 anchor institution. The project will create or save
one job.
Federated Telephone Cooperative
Rural Morris, MN
Last Mile
$1,493,637 Loan
$1,493,637 Grant
Federated Telephone Cooperative (FTC) will provide services to the
Rural Morris exchange, adjacent to its existing ILEC and CLEC service
areas. The PFSA is primarily located in Stevens County, with a small
portion in Grant County. The service area has 408 households, 20
businesses, and 2 anchor institutions. FTC will deploy voice service,
data service over FTTP, and RF video service over its existing FTTP
system. FTC will use Calix DSLAMs, which are standards based, to deploy
GPON FTTP service capable of 1 Gig. The project will create or save two
jobs.
Halstad Telephone Company
HTC Minnesota Exchanges FTTP
Last Mile Non-remote
$3,277,500 Loan
$3,277,500 Grant
Halstad Telephone Company will deploy FTTP broadband in five towns
and surrounding rural and farm areas in Norman and Polk counties. The
project will use 320 miles of fiber-optic cable and provide those
locations with broadband capability of up to 100 Mbps. Less than 5
percent of this network will also serve an area in North Dakota. The
network will make services available to 1,015 households, 41
businesses, and 15 anchor institutions. The project will create or save
42 jobs.
Lake County
Lake County Fiber Network
Last Mile
$56,413,705 Loan
$9,955,359 Grant
Lake County, in partnership with National Public Broadband, Inc.,
will implement the Lake County Fiber Network project to offer FTTP
advanced voice, video, and data services to every home and business in
Lake and eastern St. Louis counties. The network will make services
available to 14,941 households, approximately 1,060 businesses, and 98
anchor institutions. The project will create or save 510 jobs.
Minnesota Valley Television Improvement Corporation
Minnesota Wireless Expansion
Last Mile Non-remote
$562,776 Loan
$562,776 Grant
Minnesota Valley Television Improvement Corporation will continue
building out its two-way broadband Internet network to unserved and
underserved areas of west-central and south-central Minnesota. The
project will add 34 additional WiMAX access points in 34 unserved and
underserved communities adjacent to its current service area. The
network will make services available to 23,121 households, 479
businesses, and 200 anchor institutions. The project will create or
save three jobs.
Northeast Service Cooperative
Northeast Minnesota Middle Mile Project
Middle Mile
$21,749,110 Loan
$21,749,110 Grant
The Northeast Service Cooperative will implement a middle-mile
project to make dark fiber, wavelength services available to private-
sector providers in rural areas of northeast Minnesota. The network
will make services available to 105,904 households, 7,618 businesses,
and 100 anchor institutions.
Red River Rural Telephone Association, Inc.
RRT FTTP Broadband Upgrade Rural MN, ND, and SD Exchanges
Last Mile
$181,769 Loan
$181,769 Grant
Red River Rural Telephone Association, Inc., will offer FTTP
broadband service speeds of up to 100 Mbps. The project will install
690 miles of fiberoptic cable to serve rural exchanges in Ransom,
Richland, and Sargent counties in North Dakota, as well as Wilkin
County in Minnesota, and Marshall and Roberts counties in South Dakota.
The network will make services available to 42 households and 9
businesses. The project will create or save four jobs.
Sjoberg's, Inc.
Northwest Minnesota Fiber Project
Last Mile
$216,516 Loan
$649,544 Grant
Sjoberg's, Inc., will offer FTTH broadband service in Roseau, Thief
River Falls, and the hamlet of Fox. This project will benefit many
small farms located in the ``grain belt.'' Additional video, Internet,
and telephone services will be delivered via RFoG technology, while
current broadband service will be upgraded to deliver download speeds
of 40 Mbps using DOCSIS 3.0. The network will make services available
to 227 households, 15 businesses, and 3 anchor institutions. The
project will create or save 11 jobs.
Wikstrom Telephone Company, Inc.
Wikstrom NW MN Broadband
Last Mile
$2,219,581 Loan
$5,179,019 Grant
Wikstrom Telephone Company, Inc., will implement two distinct types
of projects in rural, unserved, and underserved areas in northwest
Minnesota. The first project will upgrade the backbone and distribution
fiber-optic data networks for broadband in 16 of the rural telephone
exchanges that Wikstrom serves. The network will make services
available to an unserved area of 182 square miles with 150 households
and 573 businesses. The FTTN ADSL2+ network, provisioned for 2,755
customers, will provide speeds of up to 48 Mbps. Key components of the
upgrade include installation of 74 miles of fiber-optic cables with
GigE service to remote DSLAM cabinets; installation of an upgraded 6
GHz, 150 megabits radio to serve Angle Inlet; and upgrade of microwave
service to the northwest Angle/Angle Inlet community and the fiberoptic
network to serve the islands in the northernmost part of the contiguous
United States, of which most of the land mass is Red Lake Nation
Reservation. Also included is an extension of fiber-optic cable to
serve the Agassiz National Wildlife Refuge, in cooperation with
American Recovery and Reinvestment Act funding for upgrades to its
facilities. The second project is to install a GPON 2.4 Gbps FTTH
system, with the installation of 414 miles of fiber-optic cable with
GigE to 1,163 homes and businesses, in the exchanges of Greenbush and
Karlstad, and the small cities of Kennedy, Lake Bronson, Lancaster, and
Stephen. The network will make services available to 5,115 households,
1,499 businesses, and 83 anchor institutions. The project will create
or save 26 jobs.
Winnebago Cooperative Telecom Association
WCTA 2010 Broadband Initiative
Last Mile
$1,570,592 Loan
$1,570,592 Grant
Winnebago Cooperative Telecom Association (WCTA) will provide last-
mile, high-speed wireline broadband FTTP to rural areas in north-
central Iowa and south-central Minnesota. The infrastructure will
support existing rural wireless tower facilities for future growth and
bandwidth expansion to 3G and 4G networks and beyond. The project will
build on a previously deployed FTTN system. The PFSA serves portions of
21 communities in 5 counties in Iowa and 2 counties in Minnesota. The
network will make services available to 541 premises, which include
households plus 138 home businesses, and will offer broadband service
at combined speeds ranging from 5 Mbps to 25 Mbps. WCTA will also offer
digital video and unlimited local voice service. The project will
create or save eight jobs.
Woodstock Telephone Company, Inc.
WTC 2010 Broadband Initiative
Last Mile
$4,555,328 Loan
$10,629,096 Grant
Woodstock Telephone Company, Inc. (WTC) will provide high-speed
broadband service to rural areas in southwest Minnesota. WTC has the
opportunity to incorporate and share some existing facilities to help
provide feasible service in adjoining underserved areas. WTC will also
serve farming areas near small towns. The PFSA covers parts of Lyon,
Pipestone, and Rock counties. The PFSA has 15 communities with 3,677
establishments consisting of 3,447 households, 183 businesses, and 47
anchor institutions. WTC will offer a reduced service rate to anchor
institutions and small disadvantaged businesses. The project will
provide service speeds of 10 Mbps upstream and downstream as basic
service and higher speed service at 30 Mbps and 80 Mbps. WTC will
deploy a GPON-based FTTP system using a combination of nodes to cost-
effectively build the system. An initial deployment of 16-way optical
splitters will support an average bandwidth per subscriber of 150 Mbps.
Each establishment will be served by a dedicated fiber from the central
office or the remote huts housing local active electronic nodes. The
project will create or save 41 jobs.
Mississippi
Calhoun City Telephone Company, Inc.
Calhoun City Telephone Company, Inc.: Broadband Project to Serve
Rural Unserved Establishments
Last Mile
$2,962,169 Grant
Calhoun City Telephone Company, Inc. (Calhoun City Tel), a
subsidiary of TDS Telecom, will provide high-speed broadband service to
unserved premises in Calhoun City Tel's rural Mississippi service
territory. The project will serve five rural PFSAs with six
communities. These PFSAs have 586 premises (553 households, 25
businesses, and 8 anchor institutions) with no access to broadband
service. Calhoun City Tel is the State-certified ILEC in Mississippi.
As engineered, the network will deploy Ethernet-over-copper technology
to its fullest potential, provide VDSL2 access devices packaged in an
FTTN configuration, upgrade access in the central office to support
extension of the broadband networks to these remote areas, use PON FTTH
where economically feasible, and allow for future PON upgrades without
needing to rebuild the transport routes. The target speed on the
network is 20 Mbps (upstream and downstream combined) or more DSL
service. The project will create or save 78 jobs.
DigitalBridge Communications Corporation
Round 2: MS-Panola Last Mile
Last Mile
$657,833 Loan
$1,973,499 Grant
DigitalBridge Communications Corporation will offer 4G broadband
service to Panola County. This project will deploy fixed and mobile
WiMAX technologies to offer broadband service speeds of up to 5 Mbps.
The network will make services available to 7,311 households, 1,379
businesses, and 87 anchor institutions. The project will create or save
six jobs.
Smithville Telephone Company, Inc.
Smithville Telephone Broadband Program
Last Mile
$7,110,886 Grant
Smithville Telephone Company, Inc., the certified ILEC serving
rural portions of Itawamba and Monroe counties in northeastern
Mississippi, will bring high-speed fiber-optic broadband service to the
area. The company's licensed telephone service area includes the town
of Smithville, with a population of about 900, and almost 1,300
premises. The PFSA has 298 unserved households in the more remote parts
of the rural area. As engineered, the project will build a combination
of FTTH and advanced xDSL service. The project will provide GPON
technology FTTP broadband service to all 298 unserved rural households
and upgrade the existing network in the remaining part of the PFSA to
the same capabilities available to all 738 premises in the PFSA. The
project will replace the existing voice switch with a softswitch and
build a network capable of 100 Mbps broadband speeds that later can be
reconfigured to active Ethernet for much higher speeds. The project
will create or save 30 jobs.
Southeast Mississippi Telephone Company, Inc.
Southeast Mississippi Telephone Company, Inc.: Broadband Project to
Serve Rural Unserved Establishments
Last Mile
$1,875,204 Grant
Southeast Mississippi Telephone Company, Inc. (Southeast MS Tel), a
subsidiary of TDS Telecom, will bring high-speed broadband service to
unserved premises in its rural franchise service territory. Southeast
MS Tel is the State-certified ILEC in Mississippi. The project is
designed to serve 10 PFSAs in its franchised service territory, which
is 100 percent rural and includes 4 communities. These PFSAs have 612
premises (595 households, 12 businesses, and 5 anchor institutions)
that have no access to broadband service. Southeast MS Tel has built a
broadband network that is capable of serving the majority of these
premises in several of the core communities, but the surrounding area,
much of which is sparsely populated, lacks broadband access due to the
high cost of building such a network. In addition, facilities-based
terrestrial broadband service is unavailable to the premises in the
PFSAs. This project will provide access to high-speed broadband service
(20 Mbps upstream and downstream combined). The network is also
engineered so that it can be easily upgraded at a reasonable cost to
meet future needs. The project will create or save 49 jobs.
Windstream Corporation
Windstream Mississippi, LLC
Last Mile
$1,005,566 Grant
Windstream Corporation will provide last-mile broadband service to
unserved premises in the Prentiss and Rankin rural communities.
Windstream will deploy industry-standard DSLAMs using ADSL2+ protocols
to provide a minimum of 6 Mbps downstream and 786 Kbps upstream data
services. DSLAMs will be strategically deployed to reach the greatest
number of unserved customers over the existing wireline copper plant.
The network will make services available to 1,153 households, 24
businesses, and 5 anchor institutions. The project will create or save
an estimated 28 jobs.
Missouri
Big River Broadband, LLC
Big River Broadband Project
Last Mile
$12,191,271 Loan
$12,190,784 Grant
Big River Broadband, LLC will provide high-speed Internet access to
an unserved area in southeast Missouri. The network, which covers 3,409
square miles in 7 counties, will make services available to 44,967
households, 7,511 businesses, and 311 anchor institutions. The project
will provide high-speed Internet access (both fixed and mobile) at
download speeds of up to 14.4 Mbps and upload speeds of 5.8 Mbps and
will deploy a wireless broadband network using Advanced Wireless
Services licensed spectrum and high-speed packet access technology. The
project will create or save 1,370 jobs.
Cass County
Cass County, MO, Broadband Initiatives Fiber-to-the-Home Project
Last Mile
$7,802,391 Loan
$18,205,578 Grant
Cass County will construct a last-mile FTTH network that will
extend approximately 1,286 miles to enable broadband service speeds of
up to 100 Mbps. The network will make services available to 10,360
households, 710 businesses, and 118 anchor institutions. The project
will create or save an estimated 138 jobs.
Finally Broadband, LLC
Southwest Missouri Rural Broadband Initiative
Last Mile
$499,000 Loan
$499,000 Grant
Finally Broadband, LLC will provide terrestrial fixed wireless
technology to four rural counties in southwest Missouri, two of which
are designated as persistent poverty counties. The network will make
services available to 45,782 households, 7,484 businesses, and 404
anchor institutions in a 4,563-square-mile area. The project will
deploy a Motorola Canopy platform to provide Internet bandwidth over
three interconnection points for redundancy. The project will create or
save seven jobs.
Grand River Mutual Telephone Corporation
Grand River Mutual Fiber-to-the-Home Broadband Deployment Project--
Service Area 1
Last Mile
$3,418,682 Loan
$7,976,924 Grant
The Grand River Mutual Telephone Corporation Service Area 1 project
will provide broadband service to the town of Lathrop and the
surrounding rural areas via an FTTH network. The network will make
services available to 1,221 households, 47 businesses, and 12 anchor
institutions in the Lathrop area. The project will create or save 21
jobs.
Grand River Mutual Telephone Corporation
Grand River Mutual Fiber-to-the-Home Broadband Deployment Project--
Service Area 2
Last Mile
$12,363,759 Grant
The Grand River Mutual Telephone Corporation Service Area 2 project
will provide broadband service to customers in the towns of Browning,
Linneus, Meadville, and Purdin and the surrounding rural areas. The
network will make services available to 1,185 households, 773
businesses, and 22 anchor institutions. The project will provide high-
speed Internet access over an FTTH system to customers in the PFSAs
that include Linn and Sullivan counties. The expanded network will
upgrade 459 residential customers and 80 business customers to higher
speed service. The project will create or save an estimated 28 jobs.
Grand River Mutual Telephone Corporation
Grand River Mutual Fiber-to-the-Home Broadband Deployment Project--
Service Area 3
Last Mile
$8,970,781 Grant
The Grand River Mutual Telephone Corporation Service Area 3 project
will provide high-speed Internet access over an FTTH system to
customers in the PFSAs that include the towns of Denver, Gentry, and
New Hampton, and their surrounding rural areas. The network will make
services available to 641 households, 371 businesses, and 8 anchor
institutions. Active Ethernet or GPON are planned as the access
delivery technology and are deployed in other locations in Grand River
Mutual's ILEC service area. The company will use connections to the
Missouri Network Alliance to provide high-bandwidth Internet
connectivity. The project will create or save an estimated 20 jobs.
Grand River Mutual Telephone Corporation
Grand River Mutual Fiber-to-the-Home Broadband Deployment Project--
Service Area 5
Last Mile
$973,001 Loan
$2,270,336 Grant
The Grand River Mutual Telephone Corporation Service Area 5 project
will provide broadband service to the towns of Allerton, Corydon,
Lineville, and Millerton, Iowa, and Powersville, Missouri, and their
surrounding rural areas. The network will make services available to
320 households, 54 businesses, and 6 anchor institutions along the
Iowa-Missouri border. The project will create or save six jobs.
Northeast Missouri Rural Telephone Company
Green City, MO, Fiber-to-the-Premises
Last Mile
$3,595,810 Loan
$3,595,810 Grant
Northeast Missouri Rural Telephone Company will construct an FTTP
network. This FTTP overbuild will provide greater than 20 Mbps
broadband access to households, businesses, and anchor institutions in
the Green City telephone exchange. The network will make services
available to 972 households, 49 businesses, and 20 anchor institutions.
The project will create or save 78 jobs.
Northeast Missouri Rural Telephone Company
Unionville, MO, FTTP Project
Last Mile Non-remote
$5,140,458 Loan
$5,140,458 Grant
Northeast Missouri Rural Telephone Company will deploy FTTP
infrastructure to provide needed broadband service to households,
businesses, and anchor institutions that are underserved in the
Unionville Exchange. The network will make services available to 1,437
households, 157 businesses, and 8 anchor institutions. The project will
create or save 37 jobs.
Orchard Farm Telephone Company
Orchard Farm Telephone Company: Broadband Project to Serve Rural
Unserved Establishments
Last Mile
$604,794 Grant
Orchard Farm Telephone Company (Orchard Farm Tel), a subsidiary of
TDS Telecom, will bring high-speed broadband service to unserved
premises in its rural franchise service territory. Orchard Farm Tel is
the State-certified ILEC in Missouri. The project will serve one PFSA
in its franchised service territory, which is rural and includes three
communities. This PFSA has 142 premises (92 households, 47 businesses,
and 3 anchor institutions) that have no access to broadband service.
Orchard Farm Tel has already built a broadband network that is capable
of serving the majority of the premises in several of the core
communities, but the surrounding area, much of which is sparsely
populated, lacks broadband access. In addition, facilities-based
terrestrial broadband service is unavailable to the premises in the
PFSAs. The project will deliver high-speed broadband capabilities of 20
Mbps (upstream and downstream combined). The project will create or
save 16 jobs.
Ralls County Electric Cooperative
Ralls County Electric Fiber-to-the-Home Project
Last Mile Non-remote
$9,548,909 Loan
$9,548,908 Grant
Ralls County Electric Cooperative will provide a fiber-optic
network to residential and commercial members and the underserved
anchor institutions in the service area. This is a State of Missouri
demonstration project. The network will make services available to
4,594 households, 311 businesses, and 58 anchor institutions. The
project will create or save 35 jobs.
Socket Telecom, LLC
Rural Mid-Missouri Fiber-to-the-Premise Project
Last Mile
$7,120,345 Loan
$16,614,137 Grant
Socket Telecom, LLC will provide high-speed broadband access to
rural mid-Missouri over a fiber-optic network. The PFSA consists of 117
square miles in parts of Fulton City and Callaway County. The network
will make services available to 2,728 households, 269 businesses, and
36 anchor institutions. The project is designed as an FTTH broadband
infrastructure to provide subscribers with access to telephone, video,
and broadband Internet. Broadband service speeds will include 6.0 Mbps
and 20 Mbps options. The broadband-over-fiber network will deploy a
GPON-based system that will use passive splitters to deliver concurrent
signals to multiple users within 20 kilometers of cable footage. The
project will create or save 525 jobs.
United Electric Cooperative, Inc.
United Electric Fiber Initiative
Last Mile
$6,363,933 Loan
$14,849,173 Grant
United Electric Cooperative will build an advanced last-mile FTTH
network capable of delivering high-speed broadband at 100 Mbps to 21
rural communities in northwest Missouri. The cooperative will also add
fiber strands to create a dedicated 1G education network to provide
rural schools and libraries with increased broadband access. This
education intranet, the Cooperative Network for Rural Education
Advancement, will open the door to advanced education options through
the use of video and shared resources. The network will be an open
network model with competing Internet, video, and voice providers
offering advanced broadband applications to 4,224 households, 58
businesses, and 150 anchor institutions. The network spans 1,370 miles.
Through its partner, Pulse Broadband, United Electric Cooperative will
build a passive optical FTTH network on the existing electric
distribution right-of-way. Service providers will enter the United
Electric Cooperative fiber network through a central SIP controlled by
the cooperative. The project will create or save an estimated 113 jobs.
Utopian Wireless Corporation
Utopian Benton WiMAX Project
Last Mile
$62,433 Loan
$187,298 Grant
The Utopian Benton WiMAX project will make available advanced 4G
wireless broadband service to underserved communities around the Benton
area. The PFSA covers approximately 1,105 households, 56 businesses,
and 30 anchor institutions. Using licensed 2.5 GHz spectrum, Utopian
Wireless Corporation will deploy a broadband wireless system that
features Motorola Mobile WiMAX technology. The average minimum downlink
speeds for wireless Utopian subscribers will be at least 1.8 Mbps. The
project will create or save 11 jobs.
Windstream Corporation
Windstream Missouri, Inc.
Last Mile
$10,328,319 Grant
Windstream Corporation will provide last-mile broadband service to
numerous unserved rural areas of Missouri. Windstream will deploy
industry-standard DSLAMs using ADSL2+ protocols to provide a minimum of
6 Mbps downstream and 786 Kbps upstream data services. DSLAMs will be
strategically deployed to reach the greatest number of unserved
customers over the existing wireline copper plant. The network will
make services available to 4,350 households, 201 businesses, and 39
anchor institutions. The project will create or save an estimated 229
jobs.
Montana
Montana Opticom, LLC
Gallatin Gateway Broadband Project
Last Mile
$32,127,322 Loan
$32,000,000 Grant
Montana Opticom, LLC will build a gateway broadband project to
expand high-speed broadband to the rural communities of Belgrade,
Bozeman, Gallatin Gateway, Manhattan, and a portion of West
Yellowstone. The project is an FTTP infrastructure overbuild that will
deploy fiber to a rural area with a population of 18,844, where it has
been cost prohibitive to deploy FTTP. The PFSA has 7,746 households,
4,118 businesses, and 58 anchor institutions. The project will offer
voice, video, and data services at speeds of up to 100 Mbps. The
project will create or save 697 jobs.
Nemont Telephone Cooperative, Inc.
Ft. Peck Reservation FTTP
Last Mile
$2,599,390 Loan
$23,394,510 Grant
Nemont Telephone Cooperative, Inc., will deploy an FTTP network to
the exchanges of Brockton, Frazer, Froid Rural, North Poplar, North
Wolf Point, and Poplar in northeast Montana. The PFSA, entirely in the
Ft. Peck Indian Reservation, includes the communities of Brockton,
Frazer, Fort Kipp, Homestead, Lustre, Oswego, Poplar, and Volt. This
service area is a remote, rural, underserved, and severely economically
challenged area. The network will make services available to 3,279
premises. It will also connect 42 anchor institutions, of which 19 are
tribal entities, 6 medical and healthcare centers, 7 educational
institutions, 4 emergency services, 2 libraries, 11 government
facilities, and 12 community support organizations. The project will
provide up to 100 Mbps service to all locations and the future
capability of up to 1 Gbps service at cost-effective pricing. The
project will provide a 100 percent fiber-optic network using Calix GPON
equipment. The project will create or save an estimated 283 jobs.
Project Telephone Company
Crow Agency/Lodge Grass FTTP
Last Mile
$3,887,370 Loan
$11,662,109 Grant
Project Telephone Company will provide FTTP to all locations within
the Crow Reservation exchanges of Crow Agency and Lodge Grass, where
more than 50 percent of the locations do not have access to 5 Mbps
(upstream and downstream combined). This project will also bring FTTP
to all anchor institutions, including the headquarters of the Crow
Tribe in Crow Agency. The service will be accessible by each location
and delivered by GPON and/or active Ethernet topologies. The network
will make services available to 1,495 households, 191 businesses, and
26 anchor institutions. The project will create or save an estimated
169 jobs.
Project Telephone Company
Scott St. Pryor Middle Mile
Middle Mile
$962,672 Loan
$2,888,015 Grant
Project Telephone Company will create a fiber-optic transport
network that connects the Crow Indian Reservation communities of Fort
Smith, Pryor, and Saint Xavier to existing fiber-transport networks in
Lockwood, near Billings. This project will also bring FTTP-type
services to 26 anchor institutions, ncluding tribal, State, and Federal
entities. The infrastructure will allow Project Telephone to link to
other backbone providers. This project will promote rural economic
development and provide interconnection points to underserved areas. It
will also stimulate broadband growth by providing interoffice
transport, backhaul, Internet connectivity, and/or special access using
fiber. This redundant network is vital in the event of a network
outage, such as a fiber cut, in order to keep critical services like
public safety operational. The network will make services available to
1,765 households and 493 businesses. The project will create or save 42
jobs.
Reservation Telephone Cooperative
Last Mile Broadband to Rural ND and MT
Last Mile Non-remote
$2,190,000 Loan
$2,190,000 Grant
Reservation Telephone Cooperative will deploy FTTH technology to
bring affordable and reliable broadband access and video service to
underserved rural areas in western North Dakota and eastern Montana
communities in and around the Fort Berthold Indian Reservation. These
areas include the remote Squaw Gap service area and the partially
remote Mandaree, New Town, Parshall, and Roseglen service areas. The
network will make services available to 281 households, 8 businesses,
and 4 anchor institutions. The project will create or save eight jobs.
Nebraska
Peetz Cooperative Telephone Co.
Peetz Last Mile
Last Mile Remote
$756,925 Grant
Peetz Cooperative Telephone Co., will deploy broadband
infrastructure in and around the Peetz community using a combination of
technologies. Anchor institutions within the community will have the
connectivity necessary for distance learning and public safety
applications. The network will make services available to 254
households, 15 businesses, and 6 anchor institutions. The project will
create or save five jobs.
Southeast Nebraska Communications, Inc.
Southeast Nebraska Communications Rural FTTH
Last Mile
$3,396,895 Loan
$7,888,472 Grant
Southeast Nebraska Communications, Inc. (SNC) will upgrade its
network to alleviate a last-mile bottleneck in its service area in
Nebraska and Kansas. The current technology limits average customer
throughput and is distance sensitive, which results in the most rural
subscribers having less bandwidth access than those closer to town. The
PFSA for this project is SNC's entire certificated telephone company
service territory. The network will make services available to 1,215
households, 51 businesses, and 22 anchor institutions. The project will
upgrade these areas from copper-based facilities and technologies to
FTTH and will offer broadband service speeds of a minimum of 3 Mbps
downstream and a minimum of 1 Mbps upstream. The FTTH equipment will be
standards-based active Ethernet. The project will create or save nine
jobs.
Nevada
Arizona Nevada Tower Corporation
Central Nevada Community Anchor Wireless Backhaul Solution
Middle Mile
$2,276,650 Loan
$5,312,182 Grant
Arizona Nevada Tower Corporation will provide middle-mile broadband
to enhance existing but limited fiber-optic cable and provide transport
where fiber-optic cable is unavailable by using LTE/WiMAX-ready
technology. This project will provide microwave radio backbone and a
middle-mile system to provide significant bandwidth in 15 areas of
Nevada and California. The network will make services available to
12,933 households, 3,422 businesses, and 186 anchor institutions. The
project will create or save eight jobs.
KeyOn Communications, Inc.
KeyOn WiMAX Nevada
Last Mile
$3,054,989 Loan
$7,106,233 Grant
KeyOn Communications, Inc., will offer 4G last-mile wireless
broadband and VoIP in 39 of the most rural communities in Nevada. Using
KeyOn's nationwide 3.65 GHz license and the standards-based WiMAX
protocol, the network will offer broadband service speeds of up to 8
Mbps. The network will make services available to 37,569 households,
5,522 businesses, and 849 anchor institutions. The project will create
or save 30 jobs.
Reno-Sparks Indian Colony, Inc.
Hungry Valley Broadband Initiative
Last Mile
$400,000 Grant
Reno-Sparks Indian Colony, Inc., will offer wireless broadband
service speeds at a minimum of 5 Mbps to communities in a rural
reservation in Hungry Valley. The network will make services available
to 162 households, 1 business, and 4 anchor institutions. The project
will create or save one job.
Rural Telephone Company
North Fork, Tuscarora, and Jarbidge Service Area Broadband Service
Implementation
Last Mile
$728,700 Loan
$1,700,300 Grant
Rural Telephone Company will extend ADSL2+ high-speed broadband
service to existing and new customers in the Jarbidge, North Fork, and
Tuscarora service areas. The network will make services available to
272 households, 104 businesses, and 10 anchor institutions. The project
will create or save two jobs.
New Hampshire
Bretton Woods Telephone Company, Inc.
Last Mile Remote Area--Bretton Woods, NH
Last Mile Remote
$985,000 Grant
The Bretton Woods area lacks broadband service sufficient for the
community's needs and commercial applications. Bretton Woods FTTP will
provide nearly 40 times faster service than is currently available.
Tourism is the primary industry supporting jobs and economic
development in the region and broadband access will help keep this
industry strong. The network will make services available to 386
households, 19 businesses, and 6 anchor institutions. The project will
create or save 11 jobs.
Kearsarge Telephone Company
Kearsarge Telephone Company: Broadband Project to Serve Rural
Unserved Establishments
Last Mile
$372,532 Grant
Kearsarge Telephone Company (Kearsarge Tel), a subsidiary of TDS
Telecom, will provide high-speed broadband service to unserved premises
in its rural New Hampshire service territory. The project will serve
three rural PFSAs. These PFSAs have 116 premises (107 households and 9
businesses) with no access to broadband service. Kearsarge Tel is the
State-certified ILEC in New Hampshire. The network will deploy
Ethernet-over-copper technology, provide VDSL2 access devices packaged
in an FTTN configuration, upgrade access in the central office to
support the extension of the broadband networks to these remote areas,
use PON FTTH where economically feasible, and allow for future PON
upgrades without needing to rebuild the transport routes. The target
speed is 20 Mbps (upstream and downstream combined) or more DSL
service. The project will create or save 10 jobs.
Merrimack County Telephone Company
Merrimack County Telephone Company: Broadband Project to Serve
Rural Unserved Establishments
Last Mile
$2,021,197 Grant
Merrimack County Telephone Company (Merrimack County Tel), a
subsidiary of TDS Telecom, will provide high-speed broadband service to
unserved premises in its rural New Hampshire service territory. The
project will serve eight rural PFSAs with five communities. These PFSAs
have 832 premises (770 households and 62 businesses) with no access to
broadband service. Merrimack County Tel is the State-certified ILEC in
New Hampshire. The network will deploy Ethernet-over-copper technology,
provide VDSL2 access devices packaged in an FTTN configuration, upgrade
access in the central office to support the extension of the broadband
networks to these remote areas, use PON FTTH where economically
feasible, and allow for future PON upgrades without needing to rebuild
the transport routes. The target speed is 20 Mbps (upstream and
downstream combined) or more DSL service. The project will create or
save 53 jobs.
New Mexico
Baca Valley Telephone Company, Inc.
Baca Valley Telephone Last Mile DSL Project
Last Mile Non-remote
$1,651,000 Loan
$1,586,000 Grant
Baca Valley Telephone Company, Inc., will deploy a fiber-optic
last-mile access system to provide ADSL2+ broadband service to
households and businesses in two separate PFSAs located in northeast
New Mexico. This project will serve subscribers located in Union and
Colfax counties, and consists of two service areas: Des Moines and
Maxwell. The network will make services available to 373 households, 71
businesses and rural establishments (including farms and ranches), and
20 anchor institutions. The project will create or save 10 jobs.
Dell Telephone Cooperative, Inc.
Dell Telephone Last-Mile DSL project
Last Mile
$435,500 Grant
Dell Telephone Cooperative, Inc., will provide high-speed broadband
access to subscribers in Bug Scuffle. This rural PFSA is a residential
community in southeast New Mexico. The network expansion will use
copper-based ADSL2+ technology to provide broadband data and voice
service to the 44 households in the PFSA. The project will replace
existing legacy Tellabs DLC equipment with next-generation, fiber-fed
Occam BLC equipment that is capable of providing service speeds of 4.5
Mbps downstream and 768 Kbps upstream. The project will create or save
18 jobs.
Kit Carson Electric Education Foundation, Inc.
Kit Carson Electric Cooperative Fiber-to-the-Home Project
Last Mile
$19,130,601 Loan
$44,638,070 Grant
Kit Carson Electric Cooperative (KCEC) will build an open-access
FTTH fiber-optic network in the unserved and underserved counties of
Colfax, Rio Arriba, and Taos in northern New Mexico. Two of the
counties are among New Mexico's 12 designated persistent poverty
counties. The PFSAs include 29 communities comprising an estimated
20,458 households, 3,647 businesses, 183 anchor institutions, and 2
Native American pueblos in a 2,951-square-mile rural underserved area.
The network spans 2,400 miles. KCEC will build and operate an FTTH
network capable of at least 100 Mbps for residential service and 1 Gbps
broadband service for anchor institutions. KCEC will use this project
to build an FTTH network along the existing electric distribution
right-of-way to enable smart grid/green grid technologies. The smart-
grid functionality can handle intermittent power from renewable energy
sources and help customers track and manage their real-time energy
consumption. The fiber network will provide the backbone for deploying
smart meters at residential and commercial sites so consumers can use
broadband to set up home area networks capable of supporting smart
appliances and time-shifting peak-demand strategies. The investment in
the fiber network will be leveraged to tie together regional power
substations and the operations center. KCEC is also working with the
Taos Pueblo tribal government to build fiber into that community to
provide affordable broadband access for tribal anchors and members. The
project will create or save an estimated 333 jobs.
La Jicarita Rural Telephone Cooperative
Broadband Services to Mora County, NM
Last Mile
$3,557,050 Loan
$8,299,782 Grant
La Jicarita Rural Telephone Cooperative will offer full fiber
capabilities to rural establishments with broadband service speeds of
up to 18 Mbps. This lastmile project, along with a middle-mile
component, will allow the company to provide affordable higher speed
last-mile service to a majority of its subscriber base who otherwise
would go underserved. The network will make services available to 1,384
households, 41 businesses, and 8 anchor institutions. The project will
create or save 48 jobs.
Penasco Valley Telephone Cooperative, Inc.
PVT ILEC
Last Mile Non-remote
$4,818,607 Loan
$4,770,660 Grant
Penasco Valley Telephone Cooperative, Inc., will deliver high-speed
broadband service to unserved areas in its ILEC territory. The project
will deploy fiber and electronics to allow for broadband service
offerings to customers who are unable to access DSL, include wireless
capabilities for difficult-to-reach areas, and provide for additional
fiber capacity. The network will make services available to 1,871
households and 6 businesses.
Pueblo de San Ildefonso
TewaCom Broadband Initiative (TBI), Phase 1--Upper Rio Grande
Valley
Last Mile Non-remote
$632,225 Loan
$632,225 Grant
San Ildefonso Pueblo is a partner in the Northern New Mexico
Regional Economic Development Initiative, which will deploy a regional
open network. The network will support the multiple purposes of
economic development, education, healthcare, and sustainable energy
development, and will make services available to 2,405 households, 35
businesses, and 23 anchor institutions. The project will create or save
10 jobs.
Windstream Corporation
Valor Telecommunications of Texas 310
Last Mile
$2,273,847 Grant
Windstream Corporation will extend its broadband network to provide
service to unserved homes and businesses in the areas of Chimayo,
Dixon, Penasco, Rio Chama, Ruidoso, South Rio Arriba, Tierra Amarilla,
Truth or Consequences, and Vallecitas. The project will use industry-
standard ADSL2+ protocols that will offer broadband service speeds of
up to 12 Mbps. The network will make services available to 3,999
households, 56 businesses, and 2 anchor institutions. The project will
create or save an estimated 29 jobs.
New York
Castle Cable TV, Inc.
Castle Cable TV Broadband Project
Last Mile
$3,584,280 Loan
$3,584,279 Grant
Castle Cable TV, Inc., will extend broadband and other advanced
telecommunications services through several communities in Jefferson
and St. Lawrence counties, making services available to 2,321
households, 217 businesses, and 12 anchor institutions. The project
will deploy FTTH wireline technology, update access in the head-end
necessary to support the extension of the broadband network to these
areas, and utilize a configuration that will allow for future PON
upgrades without having to rebuild the transport routes. In addition,
through its subsidiary Citizens Cablevision, Castle Cable TV will
provide the same service to Morristown and the community of Brier Hill
in rural Morristown Township along the St. Lawrence River. The project
will create or save 11 jobs.
Deposit Telephone Company, Inc.
Deposit Telephone Company, Inc.: Broadband Project to Serve Rural
Unserved Establishments
Last Mile
$3,018,085 Grant
Deposit Telephone Company, Inc. (Deposit Tel), a subsidiary of TDS
Telecom, will bring high-speed broadband service to unserved premises
in Deposit Tel's rural franchise service territory. Deposit Tel is the
State-certified ILEC in New York. The project will serve six PFSAs in
its franchised service territory, which is 100 percent rural and
includes six communities. These PFSAs have 1,140 premises (1,069
households and 71 businesses) that have no access to broadband service.
Deposit Tel has built a broadband network that is capable of serving
the majority of these premises in several of the core communities, but
the surrounding area, much of which is sparsely populated, lacks
broadband access due to the high cost of building such a network. In
addition, facilities-based terrestrial broadband service is unavailable
to the premises in the PFSAs. This project will bring access to high-
speed broadband service (20 Mbps upstream and downstream combined). The
network is also engineered so that it can be easily upgraded at a
reasonable cost to meet future needs. The project will create or save
80 jobs.
Mid-Hudson Cablevision, Inc.
Last-Mile High Speed Broadband in Greene and Columbia Counties
Last Mile
$2,987,570 Grant
Mid-Hudson Cablevision, Inc., will provide high-speed broadband
access to seven unserved and underserved PFSAs in the Hudson Valley and
Catskill Mountain region between New York City and Albany. The network
will make services available to 7,186 households, 2,586 businesses, and
97 anchor institutions and will complete part of the region's 911
public safety infrastructure. The last-mile extensions will require
construction of 135 linear miles of FTTH on existing utility poles and
connection for a network of five fire towers. Another 341-square-mile
area will be reached by deploying 16 transmitting sites for wireless.
The PFSAs also cover four underserved communities, including Greene
County. Mid-Hudson will deploy more than 16 transmitting sites using
Motorola Canopy equipment to provide access speeds of 10 Mbps in line-
of-sight areas and 4 Mbps in dense foliage. The project will create or
save 59 jobs.
Port Byron Telephone Company, Inc.
Port Byron Telephone Company: Broadband Project to Serve Rural
Unserved Establishments
Last Mile
$639,218 Grant
Port Byron Telephone Company, Inc. (Port Byron Tel), a subsidiary
of TDS Telecom, will bring highspeed broadband service to unserved
premises in Port Byron Tel's rural franchise service territory. Port
Byron Tel is the State-certified ILEC in New York. The project is
designed to serve three PFSAs in its franchised service territory,
which is 100 percent rural and includes two communities. These PFSAs
have 166 premises (160 households and 6 businesses) that have no access
to broadband service. Port Byron Tel has built a broadband network that
is capable of serving the majority of these premises in several of the
core communities, but the surrounding area, which is sparsely
populated, lacks broadband access due to the high cost of building such
a network. In addition, facilities-based terrestrial broadband service
is unavailable to the premises in the PFSAs. This project will provide
access to high-speed broadband service (20 Mbps upstream and downstream
combined). The network is also engineered so that it can be easily
upgraded at a reasonable cost to meet future needs. The project will
create or save 17 jobs.
St. Regis Mohawk Tribe
St. Regis Mohawk Tribe Connect (Economic Development for the 21st
Century)
Last Mile
$528,125 Loan
$10,034,392 Grant
The St. Regis Mohawk Tribe will bring a last-mile fiber-optic
network to its tribal lands in north-central New York. This project
will link 68 miles of fiber network to the Open Access
Telecommunications Network of the Development Authority of North
Country, to ION Incorporated Network, and to Nicholville's network. The
network will make services available to 1,500 households, 200
businesses, and 42 anchor institutions. The project will create or save
an estimated 784 jobs.
Slic Network Solutions, Inc.
Franklin County, NY, Broadband Initiative
Last Mile Remote
$1,066,000 Loan
$4,262,642 Grant
Slic Network Solutions, Inc., will construct 136 miles of fiber-
optic cable to deliver advanced broadband service in western Franklin
County. The network will provide voice and IPTV services over the same
facilities. The network will make services available to 6,508
households, 29 businesses, and 10 anchor institutions. The project will
create or save 10 jobs.
Slic Network Solutions, Inc.
St. Lawrence Broadband Initiative
Last Mile
$6,958,193 Loan
$20,874,574 Grant
Slic Network Solutions, Inc., will construct 660 miles of fiber-
optic cable in 10 PFSAs to make services available to 5,856 households,
112 businesses, and 30 anchor institutions in St. Lawrence County. The
PFSAs can be separated into two groups: the northern and southern
serving areas. The northern group consists of Flackville, Knapps
Station, Pierrepont, Slab City-Crary Mills, Southville, and St.
Lawrence North. These service areas in the northern part of the county
cover 414 square miles of primarily agricultural areas. The southern
group includes communities along the New York State Route 3 corridor,
including Star Lake, Wanakena, Cranberry Lake, and Piercefield, which
are in the towns of Fine, Clifton, and Piercefield. All have been
chronically unserved because of their isolated location in the
foothills of the Adirondacks. Broadband service is currently
unavailable to the residents of these communities. Slic Network
Solutions will deploy a 100 percent fiber-optic network using Occam
GPON equipment. The company will use infrastructure obtained through
its round one BIP award. The project will create or save 67 jobs.
Windstream Corporation
Windstream New York, Inc. 26
Last Mile
$855,901 Grant
Windstream Corporation will offer broadband service speeds of up to
12 Mbps in Clymer, Columbus, Ellery, French Creek, Mina, and Sherman by
deploying industry-standard DSLAMs with ADSL2+. The network will make
services available to 571 households, 8 businesses, and 8 anchor
institutions. The project will create or save 53 jobs.
North Carolina
Atlantic Telephone Membership Corporation
Columbus County ACCESS (Advanced Connectivity for Communities,
Education, Safety and Support)
Last Mile
$4,801,025 Loan
$11,202,393 Grant
Atlantic Telephone Membership Corporation (ATMC) will implement the
Columbus County ACCESS project to deploy FTTH to all premises in the
PFSA. The project will serve a rural, 185-square-mile area near the
eastern boundary of Columbus and Brunswick counties in the southeastern
part of the State. The network will make services available to 3,641
households, 274 small businesses, and 35 anchor institutions to provide
them with access to high-speed broadband service with speeds from 1.5
Mbps to 5.0 Mbps. The project will leverage ATMC's existing 10 GigE
core backbone, backhaul, and IP connections through interconnection to
a GigE fiber ring to be deployed in the PFSA. The FTTP network will use
GPON network gear. The project will create or save 87 jobs.
Country Cablevision, Inc.
Yancey Mitchell Rural Broadband
Last Mile
$6,324,250 Loan
$18,972,750 Grant
Country Cablevision, Inc., will deliver digital TV, data, and VoIP
to all customers in Mitchell and Yancey counties. The PFSAs lie in the
Appalachian Mountains of western North Carolina, bordering the
Tennessee line. The project will install an FTTN broadband system
delivering RFoG. The project will update and expand the company's
operating system to enable high-speed broadband access at speeds of up
to 20 Mbps to make services available to 14,029 households, 1,963
businesses, and 123 anchor institutions. The project will create or
save 22 jobs.
French Broad Electric Membership Corporation
French Broad Electric BPL Project
Last Mile
$621,492 Loan
$1,154,200 Grant
French Broad Electric Membership Corporation (FBEMC) will provide
broadband Internet access to Beech Glenn, Laurel, and Spring Creek, and
the areas of Marshall and Mars Hill. The technology used in this
project includes fiber-optic communications as the middle-mile backhaul
link and BPL as the last-mile medium to provide service to subscribers.
FBEMC chose this technological combination because it can use existing
infrastructure to deploy the system and minimize project cost. The
network will make services available to 1,016 households, 699
businesses, and 6 anchor institutions. The project will create or save
33 jobs.
Lumbee River Electric Membership Corporation
Lumbee River EMC Broadband Economic Development Initiative
Last Mile
$4,986,935 Loan
$14,960,804 Grant
Lumbee River Electric Membership Corporation will provide high-
speed broadband access in southern North Carolina. The project will
offer voice, video, and data services on an active GPON network using
fiber-optic cable and passive and active components. The FTTH last-mile
project will provide broadband service speeds of 100 Mbps or higher and
will make services available to 11,384 households, 1,634 businesses,
and 95 anchor institutions. The company will own and operate the fiber
network while partnering with Innovative Communications, Inc., to
provide all customer service functions. The project will create or save
51 jobs.
Skyline Telephone Membership Corporation
High Country Fiber
Last Mile
$7,739,073 Loan
$18,057,838 Grant
Skyline Telephone Membership Corporation will substantially expand
the provision of advanced FTTH services via a fiber-optic network with
combined speeds exceeding 20 Mbps to 6,019 households, 521 businesses,
and 84 anchor institutions in Alleghany and Ashe counties in rural
northwestern North Carolina. The project will create or save 85 jobs.
Tri-County Telephone Membership Corporation
TriCounty Telecom FTTP Project
Last Mile
$3,536,805 Loan
$10,610,410 Grant
Tri-County Telephone Membership Corporation will offer broadband
service using FTTP technology in northeast Beaufort County and parts of
Hyde and Washington counties. This project will deploy a GPON network
with the inherent capability to deliver broadband service speeds of 80
Mbps. The network will make services available to 4,312 households, 889
businesses, and 32 anchor institutions. The project will create or save
77 jobs.
Utopian Wireless Corporation
Utopian Riegelwood WiMAX Project
Last Mile
$115,249 Loan
$345,744 Grant
The Utopian Riegelwood WiMAX project will make available advanced
4G wireless broadband service to underserved communities in and around
Riegelwood. The rural PFSA includes part of Columbus County, and covers
an estimated 1,255 households, 452 businesses, and 32 anchor
institutions. Using 2.5 GHz spectrum, Utopian will deploy a broadband
wireless system that features Motorola Mobile WiMAX technology. The
project will create or save 10 jobs.
Wilkes Telecommunications, Inc.
Wilkes Stimulus Project
Last Mile
$6,483,300 Loan
$15,127,700 Grant
Wilkes Telephone Membership Corporation, Inc., will provide last-
mile, high-speed broadband to rural portions of Wilkes County in 10
underserved PFSAs. The PFSAs comprise 630 square miles. The fiber-optic
upgrade will provide higher speed broadband service to many households,
businesses, and anchor institutions, plus voice and video services. The
network will make services available to 3,680 households, 3,358
businesses, and 45 anchor institutions. The project will create or save
160 jobs.
Yadkin Valley Telephone Membership Corporation
Yadkin Valley Rural FTTH
Last Mile
$10,834,116 Loan
$10,834,116 Grant
Yadkin Valley Telephone Membership Corporation will deploy 496
miles of high-capacity, last-mile FTTH service in rural North Carolina.
The seven PFSAs comprise small, sparsely populated communities with no
high-speed access that are in critical need of sustained economic
development and support for anchor institutions. The network will make
services available to 5,121 households, 606 businesses, and 56 anchor
institutions. The project will deploy GPON FTTH to provide 65 Mbps of
bandwidth per premise, with up to 1 Gbps of Ethernet service. The area
has the potential to become a medical records processing hub. The
project will create or save 57 jobs.
North Dakota
BEK Communications Cooperative
Rural Burleigh County, ND, FTTP
Last Mile Non-remote
$2,016,571 Loan
$1,986,473 Grant
BEK Communications Cooperative will deploy lastmile technology to
provide FTTP broadband service to underserved homes and anchor
institutions in rural Burleigh County. This will aid business growth
and support public safety facilities in rural areas. The network will
make services available to 542 households and 2 anchor institutions.
The project will create or save nine jobs.
Consolidated Enterprises, Inc.
CEI Broadband Infrastructure Project
Last Mile
$5,782,361 Loan
$5,782,361 Grant
Consolidated Enterprises, Inc. (CEI) will serve two PFSAs in rural
Belfield and Dickinson, western North Dakota. The project is an FTTH
expansion to CEI's existing fixed-wireless data system in those areas.
CEI will build fiber to the least populated areas of those communities
where it has been cost-prohibitive to deploy FTTH and DSL. CEI will
build out its facilities to make services available to 1,421 households
in the PFSAs and 231 businesses and will provide voice and video, as
well as data services at speeds of up to 100 Mbps. The project will
create or save 25 jobs.
Dakota Central Telecom l--Streeter and Gackle
Dakota Central Telecom l--Streeter and Gackle
Last Mile Remote
$2,252,250 Grant
Dakota Central Telecom I will provide FTTP broadband service to
households, businesses, and anchor institutions in portions of the
Streeter and Gackle exchanges that are remote, rural, and unserved. The
network will make services available to 221 households, 5 businesses,
and 4 anchor institutions. The project will create or save nine jobs.
Griggs County Telephone Co.
Griggs County/Moore & Liberty Broadband Development
Last Mile
$5,524,010 Loan
$16,572,031 Grant
Griggs County Telephone Co. will provide last-mile FTTH technology
for broadband access and voice, video, and data services to underserved
rural areas in eastern North Dakota. The area is a designated Griggs-
Steele Empowerment Zone because of the out-migration, poverty, and
unemployment rates. This project will build facilities to extend video
and data services at speeds of up to 100 Mbps. The two Griggs County
PFSAs encompass four communities and portions of five rural counties.
Griggs County will also provide service to the rural portions of two
exchanges in other counties. The Moore & Liberty PFSA includes two
communities and portions of three counties. The network will make
services available to 1,787 households, 406 businesses, and 17 anchor
institutions. The project will create or save 248 jobs.
Halstad Telephone Company
HTC Hillsboro ND Rural FTTP
Last Mile Non-remote
$2,027,600 Loan
$2,027,600 Grant
The Halstad Telephone Company will deploy FTTP broadband Internet
and video service to 410 locations in rural Hillsboro, North Dakota,
utilizing 283 miles of fiber-optic cable and providing those locations
with a broadband capability of 100 Mbps. The network will make services
available to 399 households, 10 businesses, and 1 anchor institution.
The project will create or save one job.
Halstad Telephone Company
HTC Hillsboro ND Town Broadband
Last Mile Non-remote
$246,500 Loan
$246,500 Grant
The Halstad Telephone Company project will install electronic
enhancements to existing DSL service to increase broadband capability
to 100 Mbps for Internet and video service in the town of Hillsboro,
North Dakota. The network will make services available to 736
households, 75 businesses, and 25 anchor institutions. The project will
create or save three jobs.
Inter-Community Telephone Company, Inc.
ICTC FTTH Upgrade
Last Mile
$713,289 Loan
$1,625,362 Grant
Inter-Community Telephone Company, a local exchange carrier based
in Nome, will implement a last-mile fiber project to make broadband
available in three small, underserved rural communities--Hope, Sanborn,
and Tower City--in the counties of Barnes, Cass, and Steele,
respectively, in east-central North Dakota. The network will make
services available to an estimated 412 premises. This project includes
improvement and connectivity for businesses and anchor institutions.
The project will implement broadband through FTTH with speeds of up to
100 Mbps. The project will create or save 32 jobs.
Red River Rural Telephone Association, Inc.
RRT FTTP Broadband Upgrade Rural MN, ND, and SD Exchanges
Last Mile
$4,362,450 Loan
$4,362,450 Grant
Red River Rural Telephone Association, Inc., will offer FTTP
broadband service speeds of up to 100 Mbps. The project will install
690 miles of fiber-optic cable to serve six rural exchanges in Ransom,
Richland, and Sargent counties in North Dakota, as well as Wilkin
County in Minnesota, and Marshall and Roberts counties in South Dakota.
The network will make services available to 996 households, 219
businesses, and 6 anchor institutions. The project will create or save
106 jobs.
Reservation Telephone Cooperative
Last Mile Broadband to Rural ND and MT
Last Mile Non-remote
$8,760,000 Loan
$8,760,000 Grant
Reservation Telephone Cooperative will deploy FTTH technology to
bring affordable and reliable broadband access and video service to
underserved rural areas in western North Dakota and eastern Montana,
including the Fort Berthold Indian Reservation. These areas include the
Squaw Gap service area and the Mandaree, New Town, Parshall, and
Roseglen service areas. The network will make services available to
1,124 households, 31 businesses, and 18 anchor institutions. The
project will create or save 33 jobs.
SRT Communications, Inc.
FTTP for the Rural North Dakota Community of Metigoshe
Last Mile
$2,214,758 Loan
$2,214,758 Grant
SRT Communications, Inc., will provide broadband to subscribers
served by the Metigoshe exchange. The project will provide broadband
service to towns and rural subscribers within the PFSA. Utilizing
fiber-optic cable, the project will allow SRT to provide more than 20
Mbps broadband access to 445 households, 2 businesses, and 218 anchor
institutions. The project will create or save 72 jobs.
Ohio
Benton Ridge Telephone Company
Benton Ridge Telephone Company Broadband Expansion Project--Benton
Ridge
Last Mile Non-remote
$1,611,124 Loan
$1,547,942 Grant
The Benton Ridge Telephone Company will deploy an FTTH system in
the Benton Ridge exchange of south central Ohio. The system will
provide a dedicated fiber-optic connection for each customer. The
network will make services available to 510 households, 19 businesses,
and 1 anchor institution. The project is expected to create or save 34
jobs.
Consolidated Electric Cooperative, Inc.
North Central Ohio Rural Fiber Optic Network
Middle Mile
$1,399,499 Loan
$1,034,413 Grant
Consolidated Electric Cooperative, Inc., will construct an open-
connectivity fiber-optic backbone network. This middle-mile project is
integral to a smart grid initiative and broadband service that will
bring urban connectivity to rural Ohio. The network will make services
available to 35,708 households, 2,002 businesses, and 49 anchor
institutions.
Hometown Cable Company, LLC
Unincorporated Areas of Darke/Preble County Network
Last Mile
$2,359,926 Loan
$2,267,380 Grant
Hometown Cable Company, LLC will deploy a wireless wide area
network with fixed and mobile broadband service throughout Darke and
Preble counties. The network will make services available to 19,664
households, 522 businesses, and 206 anchor institutions. The project
will create or save 31 jobs.
Intelliwave, LLC
The Athens, Fairfield, and Pickaway County, Ohio, Rural Broadband
Initiative
Last Mile Non-remote
$1,162,599 Loan
$1,116,997 Grant
Intelliwave, LLC will leverage Recovery Act funds to deliver
wireless broadband and VoIP phone service to underserved rural
communities in Athens, Fairfield, and Pickaway counties. The network
will make services available to 11,428 households, 431 businesses, and
73 anchor institutions. The project will create or save seven jobs.
Nelsonville TV Cable, Inc.
Nelsonville TV Cable HFC Broadband Addition
Last Mile
$1,391,452 Loan
$3,246,721 Grant
Nelsonville TV Cable, Inc., will expand its HFC broadband to reach
approximately 1,500 unserved rural homes in a persistent poverty area
of southeastern Ohio. The project will expand the company's network
into 14 unserved, noncontiguous, and isolated communities. The PFSAs
range from less than 1 square mile up to 12 square miles each. The
PFSAs include parts of 10 communities in 3 counties. The network will
pass 1,461 households, 3,295 businesses, and 44 anchor institutions.
The project will add a digital HFC network that provides high-speed
Internet access speeds of 5.5 Mbps downstream and 650 Kbps upstream.
The project will expand the network from its headend to area nodes,
requiring new equipment in addition to 120 new miles of fiber and 80
miles of coax cable. The new cable will be 100 percent aerial, using
existing rights-of-way and utility poles. The project will create or
save 20 jobs.
New Era Broadband, LLC
Meigs County Broadband Infrastructure Project for
Advancement of Rural Economic Development
Last Mile
$738,733 Loan
$2,216,196 Grant
New Era Broadband, LLC will provide last-mile infrastructure to
provide fixed P2MP wireless broadband service in Meigs County in
Appalachia. Forty-four percent of the households in the State that are
unserved by broadband are in Appalachian Ohio, which is a contributing
factor in the ranking of Meigs County as one of the five poorest
counties in the State. The project will provide broadband Internet
service to a PFSA of approximately 266 square miles, comprising 3,386
unserved households, 165 unserved businesses, and 6 unserved anchor
institutions. New Era will offer wireless broadband and VoIP, with
minimum network speeds of 768 Kbps downstream and 200 Kbps upstream, as
well as 3 Mbps combined speeds in qualified areas. The project will
create or save 200 jobs.
Southern Ohio Communication Services, Inc.
Southern Ohio Underserved Rural Broadband Build
Last Mile
$738,705 Loan
$709,736 Grant
Southern Ohio Communication Services, Inc., will build a project in
Appalachia. It will make broadband Internet and VoIP services available
to 6,126 premises, the majority of which have no broadband service
available. Adams and Pike counties will be served. In addition, the
project will offer 3 Mbps upstream and 2 Mbps downstream service to the
entire population in the company's service areas. The company will
offer voice services through a wireless signal along with broadband
data service to residential, business, and anchor institution
customers. The company will add tower locations to the current network
and upgrade some backhaul links to higher capacity service. The project
will create or save 400 jobs.
Sycamore Telephone Company, Inc.
Sycamore FTTH
Last Mile
$1,452,310 Loan
$2,697,145 Grant
Sycamore Telephone Company, Inc., will build a fiber network in a
rural PFSA to provide high-speed Internet service in the community of
Sycamore Village and the villages of McCutchenville and Melmore. The
technology will be over dark fiber to households and splitters will be
in the central and two remote offices to implement GPON technology. The
remaining remote locations will be upgraded with fiber feeds to allow
bandwidth upgrade to GigE. This will provide DSL speeds from 8 to 20
Mbps. The project will serve 1,769 households, 450 businesses, and 14
anchor institutions. In the areas outside the villages, fiber will be
placed to the existing DSL terminals, allowing the company to provide
broadband speeds of over 5 Mbps to the subscribers throughout its
exchange. The project will create or save 24 jobs.
Utopian Wireless Corporation
Utopian Kinsman WiMAX Project
Last Mile
$348,926 Loan
$1,046,778 Grant
The Utopian Kinsman WiMAX project will make available advanced 4G
wireless broadband service to underserved communities in and around the
Kinsman area. The rural PFSA covers approximately 2,909 households, 543
businesses, and 27 anchor institutions. Using licensed 2.5 GHz
spectrum, Utopian will deploy a broadband wireless system that features
Motorola Mobile WiMAX technology. The system solution includes WiMAX
access points, wireless and wired backhaul, ASN-GW, CSN, and an IP core
that supports authentication and routing of traffic to application
servers and the Internet. The project will create or save 12 jobs.
Wabash Mutual Telephone Company
Wabash Mutual Telephone Company, Fort Recovery Area FTTH Project
Last Mile Non-remote
$2,201,042 Loan
$2,174,787 Grant
The Wabash Mutual Telephone Company will install an optical fiber
network in its service area and will provide an advanced technology,
allowing digital television, high-speed Internet at speeds in excess of
3 Mbps, and telephone services. The network will make services
available to 938 households, 103 businesses, and 7 anchor institutions.
The project will create or save six jobs.
Oklahoma
Atlink
Last Mile Broadband Infrastructure for Unserved, Rural Oklahoma
Communities
Last Mile
$2,649,681 Loan
$5,897,676 Grant
Atlink will connect 14 Oklahoma towns that are chronically unserved
and suffering from persistent poverty and unemployment. The project
will deliver advanced tornado warnings and provide options for Federal
and State assistance. The project includes infrastructure for high-
speed access up to 10 Mbps to 1,660 households, 1,404 businesses, and 6
anchor institutions. The project will deploy a wireless architecture
using equipment in multiple frequencies to reach the maximum number of
unserved households. The project is expected to create or save 53 jobs.
Cimarron Telephone Company
Operation Slingshot Cimarron Telephone Company
Last Mile
$21,189,659 Loan
$21,189,658 Grant
Cimarron Telephone Company will implement an FTTH project to bring
wireless broadband service to underserved rural portions of Creek,
Osage, and Pawnee counties to serve 15 Oklahoma communities and
surrounding rural areas. Portions of the project will serve Native
American tribal lands, including the Creek, Osage, and Seminole
Nations, and Pawnee Tribe of Oklahoma. The project will make services
available to 8,966 households, 933 businesses, and 35 anchor
institutions. The broadband system will include a portion of the
network for FTTH based on the ITU-T G.984 Gigabit PON standard. The
project will create or save 65 jobs.
Cross Telephone Co.
OBI-2 (Oklahoma Broadband Initiative--Area 2)
Last Mile
$8,796,980 Loan
$8,796,980 Grant
Cross Telephone Co., will offer FTTH and wireless broadband service
speeds of up to 11 Mbps to underserved areas of 6 counties in Oklahoma.
The network will serve portions of 3 Native American tribal lands, as
well as 20,771 households, 4,183 businesses, and 111 anchor
institutions. The project will create or save an estimated 63 jobs.
Medicine Park Telephone Company
Fiber-to-the-Home Project in the Rural Area of Meers in Comanche
County, Oklahoma
Last Mile
$101,218 Loan
$303,488 Grant
Medicine Park Telephone Company will offer broadband service using
a GPON FTTH network in the Meers community in rural and remote areas of
Comanche County. This project will provide broadband service speeds of
2.4 Gbps downstream and 1.2 Gbps upstream. The network will make
services available to 114 households, 3 businesses, and 6 anchor
institutions. The project will create or save seven jobs.
Medicine Park Telephone Company
Sterling Oklahoma to Scotland Texas Rural Fiber Optic Route
Middle Mile
$1,198,587 Loan
$1,193,802 Grant
Medicine Park Telephone Company will offer broadband service using
an FTTP network between Sterling, Oklahoma, and Scotland, Texas, with
service speeds between 155 Mbps and 10 Gbps. The network will make
services available to 1,524 households and 22 anchor institutions. The
project will create or save 30 jobs.
Mid-America Telephone, Inc.
Mid-America Telephone, Inc.: Broadband Project to Serve Rural
Unserved Establishments
Last Mile
$1,143,784 Grant
Mid-America Telephone Company, Inc. (Mid-America Tel), a subsidiary
of TDS Telecom, will deliver high-speed broadband service to unserved
premises in its rural Oklahoma service territory. Mid-America Tel is
the State-certified ILEC in Oklahoma. The project will reach 4 PFSAs
that include 2 communities with 310 premises (286 households and 24
businesses) with no access to broadband service. The network will
deploy Ethernet-over-copper technology, provide VDSL2 access devices
packaged in an FTTN configuration, upgrade access in the central office
to support the extension of the broadband networks to these remote
areas, use PON FTTH where economically feasible, and allow future PON
upgrades without needing to rebuild the transport routes. The network
will provide 20 Mbps (upstream and downstream combined) or more DSL
service. This project will create or save 30 jobs.
Oklahoma Communication Systems, Inc.
Oklahoma Communication Systems, Inc.: Broadband Project to Serve
Rural Unserved Establishments
Last Mile
$3,570,745 Grant
Oklahoma Communication Systems, Inc. (OCSI), a subsidiary of TDS
Telecom, will provide high-speed broadband service to 11 PFSAs that
include 8 communities. These PFSAs have 912 premises (877 households,
34 businesses, and 1 anchor institution) with no access to broadband
service. OCSI is the State-certified ILEC in Oklahoma. The project will
provide DSL broadband capability to unserved rural premises and deliver
broadband high-speed capabilities of 20 Mbps (upstream and downstream
combined). The network will deploy Ethernet-over-copper technology,
provide VDSL2 access devices that are packaged in an FTTN
configuration, upgrade access in the central office to support the
extension of the broadband networks to these remote areas, use PON FTTH
where economically feasible, and allow for future PON upgrades without
having to rebuild the transport routes. The project will create or save
94 jobs.
Panhandle Telephone Cooperative, Inc.
Western OK BB Infrastructure Development
Last Mile Non-remote
$3,366,188 Loan
$10,098,562 Grant
Panhandle Telephone Cooperative, Inc., will build out broadband
infrastructure for rural areas within the western Oklahoma panhandle. A
portion of this project will also be implemented in Texas. The network
will make services available to 1,289 households, 76 businesses, and 16
anchor institutions. The project is expected to create or save 55 jobs.
Pine Telephone Company, Inc.
Broadband Grant for Isolated Southeastern Oklahoma/Choctaw Nation--
Rural/Remote Areas
Last Mile Remote
$9,482,316 Grant
Pine Telephone Company, Inc., will use innovative wireless
technology to deliver broadband service to rural, remote, and
economically disadvantaged areas of southeastern Oklahoma--within the
Choctaw Nation--to create economic growth and jobs, enhance education
and healthcare, and improve public safety. The network will make
broadband services available to 4,996 households, 84 businesses, and 31
anchor institutions. The project will create or save 159 jobs.
Pine Telephone Company, Inc.
Last Mile Broadband for Isolated Rural Southeastern Oklahoma/
Choctaw Nation--Area 2
Last Mile
$2,926,329 Loan
$6,828,101 Grant
Pine Telephone Company, Inc., will offer 3G universal mobile
broadband service in Coal, Latimer, Le Flore, and Pittsburg counties,
within the Choctaw Nation, in southeast Oklahoma. The network will make
broadband services available to 2,968 households, 107 businesses, and
26 anchor institutions. The project will create or save 20 jobs.
Pine Telephone Company, Inc.
Last-Mile ILEC Fiber-to-the-Home for Isolated Rural Southeastern
Oklahoma/Choctaw Nation
Last Mile
$15,081,959 Loan
$15,081,958 Grant
Pine Telephone Company, Inc., will provide rural Oklahoma
subscribers with services typically available in only the most urban
areas of the country. In addition to enabling data rates of up to 40
Mbps, the network will enable video delivery via affiliate head-end
facilities. Wireless microwave backhaul will be used in some extremely
rugged portions of the network. A soft switch will enable the company
to convert subscribers to VoIP, further enhancing network utilization.
In addition, the network will provide backhaul for the wireless network
of Easygrants 1257 awarded in round one. The network will make services
available to 5,414 households, 544 businesses, and 80 anchor
institutions. The project will create or save 83 jobs.
Pioneer Long Distance, Inc.
WOW Western Oklahoma Wireless
Last Mile Non-remote
$1,819,349 Loan
$1,783,322 Grant
Pioneer Long Distance, Inc., will provide wireless broadband
service to unserved and underserved rural areas of western Oklahoma.
The network will make services available to 21,472 households, 2,063
businesses, and 291 anchor institutions. The project will create or
save 14 jobs.
Pioneer Telephone Cooperative, Inc.
Pioneer Tel FTTH Rural Broadband Initiative
Last Mile
$10,958,906 Loan
$24,971,934 Grant
Pioneer Telephone Cooperative, Inc., will offer FTTH broadband
service speeds of up to 20 Mbps to remote areas within 76 western
Oklahoma telephone exchange boundaries. The network will make services
available to 3,952 households, 160 businesses, and 5 anchor
institutions. The project will create or save 204 jobs.
Totah Communications, Inc.
Totah Broadband Expansion Project
Last Mile Non-remote
$2,426,053 Loan
$1,830,180 Grant
Totah Communications, Inc., will upgrade existing copper-fed DSL
nodes to fiber-fed DSL nodes. This project will also install additional
fiber-fed DSL nodes throughout the service area. The route will cover
152 miles and will serve approximately 800 new customers. The network
will make services available to 422 households, 9 businesses, and 8
anchor institutions. The project is expected to create or save 25 jobs.
Utopian Wireless Corporation
Utopian Prague WiMAX Project
Last Mile
$66,139 Loan
$198,418 Grant
Utopian Wireless Corporation will provide wireless broadband
service to the rural, underserved communities near Prague, Oklahoma.
The rural PFSA includes an area in Lincoln County and covers
approximately 1,547 households, 106 businesses, and 33 anchor
institutions. Utopian will deploy a broadband wireless system that
features Motorola Mobile WiMAX technology. The system includes WiMAX
access points, wireless and wired backhaul, ASN-GW, CSN, and an IP core
that supports authentication and routing of traffic to application
servers and the Internet. The project will create or save 10 jobs.
Windstream Corporation
Oklahoma Windstream, LLC
Last Mile
$2,279,598 Grant
Windstream Corporation will expand broadband service to unserved
customers in the PFSA comprising the communities of East Cherokee,
Stilwell East, and Stilwell West. The project will allow Windstream
Corporation to extend the reach of its broadband network to make
services available to 1,667 households and 7 businesses, and provide
broadband to last-mile wireline telephone subscribers. The project also
will provide broadband service to 14 anchor institutions. Windstream
Corporation will deploy industry standard DSLAMs using industry
standard ADSL2+ protocols to provide a minimum of 6 Mbps downstream and
786 Kbps upstream data service. The project will create or save an
estimated 41 jobs.
Wyandotte Telephone Company
Wyandotte Telephone Company: Broadband Project to Serve Rural
Unserved Establishments
Last Mile
$702,933 Grant
Wyandotte Telephone Company (Wyandotte Tel), a subsidiary of TDS
Telecom, will provide high-speed broadband service to unserved premises
in two rural Oklahoma PFSAs that include three communities. The project
will make services available to 226 premises (192 households and 34
businesses) that have no access to broadband service. Wyandotte Tel is
the State-certified ILEC in Oklahoma. The network will deploy Ethernet-
over-copper technology to its fullest potential, provide VDSL2 access
devices in an FTTN configuration, upgrade access in the central office
to support the extension of the broadband networks to these remote
areas, use PON FTTH where economically feasible, and allow for future
upgrades without needing to rebuild the transport routes. Target speed
of the expanded network will be at 20 Mbps (upstream and downstream
combined) or more DSL service. This project will create or save 18
jobs.
Oregon
Cascade Networks, Inc.
Rural Clatskanie Broadband Initiative
Last Mile
$578,316 Loan
$578,316 Grant
Cascade Networks, Inc., in cooperation with Clatskanie People's
Utility District in Columbia County, will build a last-mile project in
rural Clatskanie to provide broadband service to 410 households, 72
businesses, and 2 anchor institutions. The key business area to be
served is the Port Westward light industrial development, an industrial
park on the Columbia River. The infrastructure buildout includes
extending fiber to the Clatskanie People's Utility District substations
to allow more efficient management of the power grid. The project will
provide broadband to support data, voice, and IPTV services over a
hybrid system of fiber-optic and wireless equipment. The system will be
primarily FTTH, with wireless micronodes at points on the edge of the
service area where fiber is not a practical option. The project will
create or save two jobs.
Cascade Utilities, Inc.
Cascade Utilities Broadband Project
Last Mile
$1,299,433 Loan
$3,898,299 Grant
Cascade Utilities, Inc., will lay 127 miles of fiber-optic cable
and install or replace 21 DSLAMs in rural areas in Oregon that do not
have high-speed broadband access. The network will make services
available to 5,814 households, 1,104 businesses, and 19 anchor
institutions. The project will create or save 12 jobs.
City of Sandy
Sandy Broadband Infrastructure Project
Last Mile Non-remote
$374,548 Loan
$374,537 Grant
The Sandy Broadband Infrastructure Project will improve and expand
wireless Internet service provided by SandyNet, a municipal Internet
service provider operated by the City of Sandy, Oregon. The project
will add new antenna towers to upgrade equipment to 8 Mbps capacity and
provide fiber backhaul. The network will make services available to
3,908 households, 150 businesses, and 20 anchor institutions. The
project will create or save 10 jobs.
Gervais Telephone Company
Marion County Broadband Buildout
Last Mile Non-remote
$314,430 Loan
$314,430 Grant
Gervais Telephone Company will expand an existing fiber network.
The project will provide broadband connectivity to 121 households, 24
businesses, and 4 anchor institutions in rural Marion County. The
project will create or save nine jobs.
Monroe Telephone Company
Monroe Telephone Cheshire & Greenberry Buildout Project
Last Mile
$1,413,684 Loan
$4,241,050 Grant
Monroe Telephone Company will extend broadband services using FTTP
to three remote, sparsely populated, mostly agricultural areas. The
PFSAs are unserved. The project will construct a small middle-mile
fiber-optic connection to an interconnection point in Junction City.
The network will make services available to 959 households, 29
businesses, and 7 anchor institutions. The project's backhaul will also
make fiber connectivity available to six anchor institutions in the
Junction City area. The broadband system is GPON standard FTTP
architecture with fiber-fed remote cabinets in the field to
interconnect the end users with the Internet. This last-mile network
will provide the residents, businesses, and anchor institutions with
access to broadband service at minimum speeds up to 20 Mbps at
affordable rates, with broadband speeds up to 100 Mbps. Discounts will
be offered for service to critical community institutions and socially
and economically disadvantaged small business concerns. The project
will create or save four jobs.
Trans-Cascades Telephone Company
Trans-Cascades Broadband Project
Last Mile
$590,099 Loan
$1,770,294 Grant
Trans-Cascades Telephone Company will offer broadband service at a
minimum speed of 10 Mbps in remote eastern Oregon, in Jefferson, Wasco,
and Wheeler counties. The network will make services available to 136
households, 46 businesses, and 3 anchor institutions. The project will
create or save 10 jobs.
Warm Springs Telecommunications Company
The Confederated Tribes of Warm Springs Reservation Broadband
Network
Last Mile
$2,722,960 Loan
$2,722,960 Grant
Warm Springs Telecommunications Company, representing the Tribal
Council of the Confederated Tribes of Warm Springs in central Oregon,
will implement phase I of a long-range plan to provide advanced
telecommunications service to all homes, businesses, and critical
facilities on this 1,000-square-mile reservation. The PFSA has three
main communities. The project will make services available to 755
households, 22 businesses, and 233 anchor institutions. The company
will construct a hybrid broadband network with fiber backbone and a mix
of fiber and wireless links. The network will connect all government
agencies, businesses, critical and emergency facilities, and most homes
on the reservation with either fiber or wireless to provide broadband
Internet access with speeds of up to 5 Mbps and basic telephone
service. The project will create or save 33 jobs.
Pennsylvania
Deposit Telephone Company, Inc.
Deposit Telephone Company, Inc.: Broadband Project to Serve Rural
Unserved Establishments
Last Mile
$125,754 Grant
Deposit Telephone Company, Inc. (Deposit Tel), a subsidiary of TDS
Telecom, will bring high-speed broadband service to unserved premises.
Deposit Tel is the State-certified ILEC in New York. The project will
serve six PFSAs that include six communities. These PFSAs have 48
premises that have no access to broadband service. This project will
bring access to high-speed broadband service (20 Mbps upstream and
downstream combined). The network is engineered so that it can be
easily upgraded to meet future needs. The project will create or save
three jobs.
Keystone Wireless, LLC
Keystone Wireless Broadband Initiative
Last Mile
$11,096,780 Loan
$25,286,105 Grant
Keystone Wireless, LLC will offer 3G broadband service in Berks,
Centre, Clinton, Lycoming, Mountour, Northumberland, Schuylkill,
Snyder, and Union counties in central Pennsylvania. Keystone will
upgrade its core network infrastructure and 162 base stations with 3G
wireless broadband technology to bring high-speed Internet service
throughout the PFSAs. The network will make services available to
368,028 households, 26,882 businesses, and 9,035 anchor institutions.
The project will create or save 56 jobs.
West Virginia PCS Alliance, LC
Rural Mobile Broadband Initiative--Maryland
Last Mile
$1,503,518 Grant
West Virginia PCS Alliance LC and NTELOS Licenses Inc., both
subsidiaries of NTELOS Holdings Corp., will expand West Virginia PCS
Alliance's wireless services to provide 3G mobile broadband service in
unserved rural portions of western Maryland and south-central
Pennsylvania north of Hagerstown. The PFSAs comprise 8 communities with
more than 50 percent of the premises lacking high-speed broadband
service. The project will make services available to 35,459 households,
4,110 businesses, and 876 anchor institutions. The project will create
or save 11 jobs.
Windstream Corporation
Windstream Pennsylvania, LLC
Last Mile
$20,497,604 Grant
Windstream Corporation will offer broadband service to a large
number of communities in Pennsylvania. The project will use industry
standard ADSL2+ protocols that will offer broadband speeds of up to 12
Mbps. The network will make services available to 31,684 households,
1,793 businesses, and 105 anchor institutions. The project will create
or save more than 345 jobs.
South Carolina
Home Telephone Company, Inc.
Low Country Broadband Last-Mile Project
Last Mile
$1,000,000 Loan
$2,979,868 Grant
Home Telephone Company, Inc., will provide broadband service to
unserved or underserved rural areas in portions of Berkeley,
Dorchester, and Orangeburg counties and the Cross and Harleyville
areas. The project will deliver voice services, high-speed Internet
access (up to 20 Mbps), and RF video service to customers through an
ITU GPON standards-based Calix C7 GPON system. The company will install
single-mode fiber-optic cable for voice and data. The network will make
services available to 1,143 households, 1 business, and 7 anchor
institutions. The project will create or save 14 jobs.
Orangeburg County
Southeastern Orangeburg County FTTP
Last Mile
$4,662,501 Loan
$13,987,499 Grant
Orangeburg County will offer FTTP technology to residents in the
communities of Bethel Forest, Canaan, Cattle Creek, Homestead,
Lambrick, McAlhany, Pea Ridge, Rowesville, and Sixty Six. The network
will cover 278 square miles and will make services available to 3,631
households, 90 businesses, and 12 anchor institutions. The project will
create or save an estimated 70 jobs.
Windstream Corporation
Windstream South Carolina, LLC
Last Mile
$3,050,160 Grant
Windstream Corporation will offer broadband service to the
communities of Cameron, Fort Motte-Lone Star, Highland, Kershaw,
Landrun, Lexington, Mount Pisgah, North, Orangeburg, Sandy Run-Staley,
St. Matthews, and Westville. The project will use industry standard
ADSL2+ protocols that will offer broadband service speeds of up to 12
Mbps. The network will make services available to 3,543 households, 286
businesses, and 40 anchor institutions. The project will create or save
40 jobs.
South Dakota
Midstate Communications, Inc.
Chamberlain/Oacoma Fiber-to-the-Home
Last Mile
$2,728,118 Loan
$6,365,610 Grant
Midstate Communications, Inc., will offer FTTH access in the
Chamberlain/Oacoma exchange with broadband service speeds of up to 1
Gbps. The network will make services available to 1,486 households, 176
businesses, and 28 anchor institutions. The project will create or save
99 jobs.
TrioTel Communications, Inc.
TrioTel Fiber-to-the-Home Broadband Deployment Project
Last Mile
$3,704,212 Loan
$8,643,163 Grant
TrioTel Communications, Inc., will provide high-speed Internet
service in the communities of Alexandria, Canova, Emery, Farmer, Salem,
and Spencer and the surrounding rural areas via an FTTH network. The
network will provide service to 1,654 households, 986 businesses, and
127 anchor institutions. The project will create or save 15 jobs.
Venture Communications Cooperative
Cresbard, Orient, and Faulkton Exchanges
Last Mile
$2,614,957 Loan
$2,614,956 Grant
Venture Communications Cooperative will provide broadband service
to households, businesses, and key community organizations that are
underserved in the Cresbard, Faulkton, and Orient exchanges. The
network will make services available to 749 households, 108 businesses,
and 15 anchor institutions. The project will create or save 76 jobs.
Tennessee
Bledsoe Telephone Cooperative Corporation
Nine Mile and College Station Broadband Upgrade
Last Mile
$1,527,352 Loan
$3,563,821 Grant
Bledsoe Telephone Cooperative Corporation (BTC) will extend high-
speed broadband service to two PFSAs in eastern middle Tennessee. The
project will upgrade facilities in two telephone exchanges, College
Station and Nine Mile. BTC will establish 36 new aggregation points
connected to the main exchange offices by fiber-optic cable. Existing
copper cable facilities will be reconfigured between the new
aggregation points and subscriber locations. BTC will provide ADSL
service speeds of up to 10 Mbps downstream and 1 Mbps upstream. The
premises remaining beyond the reconfiguration will be designed
customer-by-customer to provide them with a minimum of 19 Mbps
downstream and 1 Mbps upstream. The network will make services
available to 2,675 households, 148 businesses, and 9 anchor
institutions. The project will create or save 40 jobs.
Highland Telephone Cooperative, Inc.
Highland Telephone Cooperative FTTH Build-Out
Last Mile
$11,801,827 Loan
$35,405,478 Grant
Highland Telephone Cooperative (HTC) will enhance broadband
communication options for the residents of McCreary, Morgan, and Scott
counties in rural Tennessee and Kentucky. HTC will construct an FTTH
wireline fiber-optic cable network, configured in PON architecture,
able to support speeds in excess of 20 Gbps for all subscribers in its
exchange boundaries. The network will make services available to 15,371
households, 1,301 businesses, and 75 anchor institutions. The project
will create or save 52 jobs.
Millington Telephone Company, Inc.
Mason/Stanton Broadband Expansion
Last Mile
$1,141,987 Loan
$2,664,635 Grant
Millington Telephone Company, Inc., will expand access to high-
speed broadband service to customers, businesses, and anchor
institutions in areas where 75 percent of the premises lack high-speed
access and 20 percent of the households are unserved by basic
broadband. The PFSA comprises 166 square miles in rural western
Tennessee in portions of Fayette, Haywood, and Tipton counties.
Communities in the PFSA are Asbury, Braden, Danceyville, Fredonia,
Keeling, Longtown, and Stanton. The project will make services
available to 1,603 households, 53 businesses, and 16 anchor
institutions. The company will offer community and public safety
facilities a discount on broadband services. The project will use an
FTTN system and broadband loop carrier equipment as the standard for
the ADSL2+ aggregation design. The fiber-optic cable design is laid out
using three 1 GigE rings to backhaul the broadband data from the major
aggregation points to the main data collection and switching center.
The major aggregation points are the existing central offices in the
five current telephone exchanges in Millington's network. Broadband
speeds of up to 10 Mbps downstream and 2.0 Mbps upstream for
residential subscribers and up to 15 Mbps downstream and 2.0 Mbps
upstream for businesses will be provided. The project will create or
save 84 jobs.
North Central Telephone Cooperative, Inc.
Broadband Infrastructure Investment Program
Last Mile Non-remote
$24,964,000 Loan
$24,715,709 Grant
North Central Telephone Cooperative will provide the infrastructure
to offer advanced voice, video, and data services exceeding 20 Mbps to
remote and rural communities in the service area of northern Tennessee.
The network will make services available to 14,824 households, 951
businesses, and 48 anchor institutions. The project is expected to
create or save 150 jobs.
Scott County Telephone Cooperative
FTTP South Scott County
Last Mile
$447,300 Loan
$1,043,700 Grant
Scott County Telephone Cooperative will deploy FTTP technology in
south Scott County and a small portion of Russell County. The network
will be an active Ethernet system and will provide broadband service
speeds of up to 10 Gbps. The network will make services available to
292 households, 5 businesses, and 1 anchor institution. The project
will create or save nine jobs.
Skyline Telephone Membership Corporation
High Country Fiber
Last Mile
$956,515 Loan
$2,231,868 Grant
Skyline Telephone Membership Corporation will substantially expand
advanced FTTH service via a fiber-optic network with combined speeds
exceeding 20 Mbps to 744 households, 64 businesses, and 10 anchor
institutions in Alleghany and Ashe counties in rural, northwestern
North Carolina. The project will create or save 10 jobs.
Sunset Digital Communications, Inc.
TRANSFORM Tennessee
Last Mile
$2,452,939 Loan
$22,076,454 Grant
Sunset Digital Communications, Inc., will offer broadband service
speeds of up to 1 Gbps. The network will use DWDM to also provide
bandwidths up to 1.6 Tbps. The PFSA is located in the Appalachians of
northeast Tennessee and includes two persistent poverty counties.
Sunset Digital Communications plans to partner with three funded
middle-mile projects and has synergistic operations planned with two
other last-mile applications. The network will make services available
to 11,021 households, 471 businesses, and 65 anchor institutions. The
project will create or save 73 jobs.
Tennessee Telephone Company, Inc.
Tennessee Telephone Company: Broadband Project to Serve Rural
Unserved Establishments
Last Mile
$5,150,691 Grant
Tennessee Telephone Company (Tennessee Tel), a subsidiary of TDS
Telecom, will bring high-speed broadband service to unserved premises
in its rural franchise service territory. Tennessee Tel is the State-
certified ILEC in Tennessee. The project will serve 11 rural PFSAs that
include 9 communities. Within the PFSAs, there are 1,576 premises
(1,499 households, 46 businesses, and 31 anchor institutions) with no
access to broadband service. The network will deploy Ethernet-over-
copper technology, provide VDSL2 access devices that are packaged in an
FTTN configuration, upgrade access in the central office to support the
extension of the broadband networks to these remote areas, use PON FTTH
where economically feasible, and allow for future PON upgrades without
needing to rebuild the transport routes. The target speed to unserved
customers is at 20 Mbps (upstream and downstream combined). The project
will create or save 135 jobs.
Twin Lakes Telephone Cooperative Corporation
Twin Lakes Telephone Cooperative Corp.: Fiber-to-the-Home Broadband
Project
Last Mile
$16,076,833 Loan
$16,076,834 Grant
Twin Lakes Telephone Cooperative Corporation will provide broadband
service to the rural exchanges of Byrdstown, Celina, Clarkrange, and
Moss. The network will make services available to 3,956 households,
1,328 businesses, and 84 anchor institutions. The project will promote
economic development in rural areas that have consistently higher than
average unemployment rates and areas that are in persistent poverty
counties. The project will create or save an estimated 349 jobs.
West Kentucky Rural Telephone Cooperative Corporation, Inc.
West Kentucky and West Tennessee Broadband FTTH Initiative
Last Mile
$19,189,000 Loan
$19,189,000 Grant
West Kentucky Rural Telephone Cooperative Corporation, Inc. (WK&T)
will build a fiber-optic construction project to provide broadband
infrastructure to rural southwest Kentucky in the counties of Calloway,
Carlisle, Fulton, Graves, Hickman, and Marshall, and in the northwest
Tennessee counties of Henry, Obion, and Weakley. The network will make
services available to 5,382 households, 1,119 businesses, and 31 anchor
institutions. At the conclusion of the project, WK&T expects to double
its data subscribers and have almost 90 percent of its customer base,
more than 14,000 customers, on broadband, with data speeds averaging
1.5 Mbps or higher. In addition, fiber broadband will be available to
99 public facilities. The project will create or save 50 jobs.
Texas
ATSI Communications, Inc.
South Texas Broadband Technology Progreso TX
Last Mile
$416,588 Loan
$416,588 Grant
ATSI Communications, Inc., will build a wireline broadband network
infrastructure to provide last-mile service speeds of up to 6 Mbps in
Progreso. The company will install a point-to-point microwave
transponder solution with a capacity of 250 Mbps connecting its
Internet POP to its cable network head-end in Progreso. The network
will make services available to 1,010 households, 852 businesses, and
14 anchor institutions. The project will create or save 24 jobs.
Blossom Telephone Company
Red River Broadband Expansion Project
Middle Mile
$833,303 Loan
$1,944,373 Grant
Blossom Telephone Company (BTC) will provide middle-mile fiber and
transmission facilities that will make available broadband service to
unserved and underserved customers in rural areas in northeast Texas.
The project will provide FTTH in the Blossom exchange. The 26.5-mile
route of middle-mile fiber facilities will enable the FTTH facilities
to deliver significantly greater bandwidth. By leveraging the middle-
mile fiber with wireless last-mile facilities, the project will enable
BTC to provide broadband service to customers. Broadband service speeds
will exceed 5 Mbps to all Blossom wireline customers upon completion.
Wireless customers will be offered packages up to 3 Mbps along the
middle-mile route that is unserved. The network will make services
available to 1,887 households, 91 businesses, and 11 anchor
institutions. The project will create or save 72 jobs.
Electronic Corporate Pages, Inc.
Central Texas Rural Wireless Expansion Project
Last Mile
$586,922 Loan
$1,306,376 Grant
Electronic Corporate Pages, Inc. (ECPI) will provide wireless
broadband coverage to a 1,226-square-mile area of rural central Texas.
This wireless expansion project will offer over 3 Mbps combined
broadband service speeds (upstream and downstream) using Motorola's
Canopy technology. Over the four counties covered in this project, the
network will make services available to 12,677 households, 6,083
businesses, and 11 anchor institutions. ECPI serves 1,850 customers on
18 towers, which will be expanded to 24 towers under this project.
Using backhaul technology and proven network management systems, ECPI
will upgrade its core equipment and deploy a WiMAX system. The network
is supported by ECPI's two network operations centers, each of which
can be upgraded to full gigabit capacity. The project will create or
save nine jobs.
Five Area Telephone Cooperative, Inc.
West Texas Broadband Infrastructure Development to Support Internet
Adoption
Last Mile
$2,454,223 Grant
Five Area Telephone Cooperative will implement the West Texas
Broadband Infrastructure Development to Support Internet Adoption
project. The company will offer high-speed broadband service to the
towns of Bledsoe, Bula, Clays Corner, Lazbuddie, Maple, and Needmore in
rural west Texas via an FTTP network. The network will make services
available to 199 households, 235 businesses, and 1 anchor institution.
The project will create or save 16 jobs.
Hill Country Telephone Cooperative, Inc.
Project Rural Connect
Last Mile
$3,670,265 Loan
$8,563,952 Grant
Hill Country Telephone Cooperative, Inc., will offer broadband
service speeds of up to 20 Mbps (copper) and up to 100 Mbps (fiber).
The project will deploy 560 miles of fiber-optic cable, 280 digital
loop carriers, and soft switches throughout a substantial portion of
its service area. The network will make services available to 1,685
households. The project will create or save 448 jobs.
Medicine Park Telephone Company
Sterling Oklahoma to Scotland Texas Rural Fiber Optic Route
Middle Mile
$133,176 Loan
$132,645 Grant
Medicine Park Telephone Company will offer broadband service using
an FTTP network between Sterling, Oklahoma, and Scotland, Texas, with
service speeds between 155 Mbps and 10 Gbps. The network will make
services available to 169 households and 2 anchor institutions. The
project will create or save three jobs.
Mid-Plains Rural Telephone Cooperative, Inc.
Rural Texas Panhandle Mid-Plains
Last Mile
$1,421,000 Loan
$1,388,000 Grant
Mid-Plains Rural Telephone Cooperative will extend a current
project in the rural Texas Panhandle to provide high-speed broadband
service to six underserved PFSAs. Through a USDA Telecommunications
Loan, Mid-Plains is installing fiber-optic cable to electronic
equipment, FTTH, and fiber between central offices. This project will
extend FTTH facilities to additional areas. Equipment is being updated
in congested areas to improve service and reliability. The 6 newly
served PFSAs cover 227 square miles and the project will make services
available to 295 premises, of which 145 are without high-speed access.
This project will serve 281 rural establishments, including farms and
ranches, and an additional 14 businesses. This project will create or
save 39 jobs.
PRIDE Network
Burkburnett & Iowa Park, TX
Last Mile Non-remote
$12,811,071 Loan
$6,309,931 Grant
PRIDE Network will construct an FTTP telecommunications
infrastructure with a WiMAX service-extension overlay that will bring
advanced broadband service to the rural communities of Burkburnett and
Iowa Park. In addition, less than 5 percent of this network will serve
an area in Oklahoma. The network will make services available to 7,804
households, 501 businesses, and 31 anchor institutions. This project
will create or save 400 jobs.
PRIDE Network, Inc.
PRIDE Network
Last Mile Non-remote
$22,720,551 Loan
$21,829,549 Grant
PRIDE Network will construct an FTTP telecommunications
infrastructure with a WiMAX service-extension overlay that will bring
advanced broadband service to rural communities in the Texas South
Plains region. The network will make services available to 19,777
households, 2,201 businesses, and 139 anchor institutions. This project
will create or save 890 jobs.
Telecom Cable, LLC
Last Mile Remote/Rural Telecom Cable
Last Mile
$634,050 Grant
Telecom Cable, LLC will offer high-speed broadband access via two-
way HFC wireline transmission in the rural areas of Corrigan, Fulshear,
and Weston Lakes. This project will provide broadband service speeds of
at least 5 Mbps. The network will make services available to 1,854
households, 59 businesses, and 22 anchor institutions. The project will
create or save 20 jobs.
Valley Telephone Cooperative, Inc.
Southern Texas Broadband Infrastructure Development and Adoption
Project
Last Mile Non-remote
$40,093,153 Loan
$38,520,868 Grant
Valley Telephone Cooperative, Inc., will develop broadband
infrastructure in 11 unserved and underserved rural areas of the South
Texas Plains. The network will make services available to 19,494
households, 778 businesses, and 196 anchor institutions. The project
will create or save 160 jobs.
Wes-Tex Telephone Cooperative, Inc.
Western Texas Broadband Infrastructure Development
Last Mile Non-remote
$16,891,875 Loan
$16,891,875 Grant
Wes-Tex Telephone Cooperative, Inc., will develop broadband
infrastructure to increase Internet availability and access speeds in
rural areas of western Texas. The network will make services available
to 3,298 households, 132 businesses, and 35 anchor institutions.
Windstream Corporation
Windstream Sugar Land, Inc.
Last Mile
$1,613,509 Grant
Windstream Corporation will provide last-mile broadband service to
unserved premises in four communities in rural Texas. Windstream will
deploy industry standard DSLAMs using ADSL2+ protocols to provide a
minimum of 6 Mbps downstream and 786 Kbps upstream data service. DSLAMs
will be strategically deployed to reach the greatest number of unserved
customers over the existing wireline copper plant. The project will
make services available to 1,255 households, 139 businesses, and 4
anchor institutions. This project will create or save an estimated 31
jobs.
XIT Rural Telephone Cooperative, Inc.
XIT Rural Telephone Cooperative--wFTTP & VDSL2 Combination
Application
Last Mile Non-remote
$3,065,440 Grant
XIT Rural Telephone Cooperative, Inc., will deploy a combination of
FTTP and FTTN VDSL2 technology within two separate service areas in and
around the communities of Dalhart and Stratford. The network will make
services available to 4,195 households, 396 businesses, and 36 anchor
institutions. The project will create or save 10 jobs.
XIT Rural Telephone Cooperative, Inc.
XIT Rural Telephone Cooperative, Inc.--Round 2 Rural FTTP
Application
Last Mile
$2,112,950 Grant
XIT Rural Telephone Cooperative will replace a copper telephone
plant with fiber to serve three rural PFSAs. Using standards-based GPON
technology, XIT will provide 100 Mbps to subscribers in the three PFSAs
of Coldwater, Kerrick, and Middlewater. The project will make services
available to 227 households and 56 businesses. The project will create
or save 82 jobs.
Utah
Central Utah Telephone, Inc.
Basin Broadband Project
Last Mile
$620,724 Loan
$1,862,070 Grant
Central Utah Telephone, Inc., will install 71.1 miles of middle-
mile underground fiber-optic cable in Juab and Millard Counties and 60
miles of HFC last-mile cable and electronics and operating systems in
the communities of Delta, Fillmore, Hinckley, Holden, and Lynndyl. The
network will make services available to 2,107 households, 217
businesses, and 137 anchor institutions. The project will create or
save seven jobs.
South Central Utah Telephone Association, Inc.
Grand Staircase High-Speed Access Broadband Initiative
Last Mile
$9,187,244 Grant
South Central Utah Telephone Association, Inc. (SCUTA) will bring
high-speed broadband service to State parks, national parks, and
national monuments in the PFSA. The PFSA is a 1,416-square-mile area in
south central Utah that includes Bryce Canyon National Park, Capital
Reef National Park, Kodachrome State Park, Anasazi State Park, and
Grand Staircase-Escalante National Monument, plus their attendant
operation centers or headquarters. The area includes 18 communities in
Garfield, Kane, and Wayne counties. The Grand Staircase PFSA includes
3,020 households, 212 businesses, and 47 anchor institutions. SCUTA
will offer broadband data service at speeds ranging from 1.0 Mbps to 15
Mbps. The project will include both FTTH and highspeed copper networks
connected through a fiber backbone to deliver service to residences,
businesses, community organizations, and government facilities. The
project will create or save an estimated 25 jobs.
Vermont
VTel Wireless, Inc.
Wireless Open World (WOW) by VTel Wireless, Inc.
Last Mile
$35,166,081 Loan
$81,664,754 Grant
VTel Wireless, Inc., will provide Tri-Band 4G LTE wireless
broadband to virtually every unserved anchor institution, unserved
home, and unserved business throughout Vermont and parts of New York
State and New Hampshire. VTel Wireless will reach 57,008 households,
3,775 businesses, and 714 anchor institutions. These include all the
33,165 unserved households and anchor institutions in Vermont. The area
to be served includes 14 towns and villages in the most rural region of
Vermont. Part of the project will upgrade every home served by Vermont
Telephone Company to include GigE over active fiber. In another part of
the project, VTel will work with Central Vermont Public Service, Green
Mountain Power, and the affiliate of Vermont's electric companies,
VELCO, on a smart grid initiative. The companies will use VTel's WiMAX
wireless licenses for one of the Nation's first two tests of GE's WiMAX
Smart Meters. The project will create or save 1,870 jobs.
Waitsfield-Fayston Telephone Co., Inc.
Rural Vermont Broadband Advancement Project
Last Mile
$1,667,993 Loan
$3,891,982 Grant
Waitsfield-Fayston Telephone Co., will offer FTTH broadband service
in the counties of Addison, Chittenden, and Washington. The network
will make services available to 682 households, 56 businesses, and 2
anchor institutions. The project will create or save 16 jobs.
Virginia
Lenowisco Planning District Commission
ADVANCE Virginia
Last Mile
$6,067,863 Loan
$14,158,344 Grant
Lenowisco Planning District Commission will offer high-speed fiber-
optic broadband service in the Appalachians of southwest Virginia, a
PFSA that is underserved and includes one persistent poverty county.
The project will provide broadband service speeds of 1 Gbps. The
network will make services available to 26,768 households, 1,553
businesses, and 109 anchor institutions The project will create or save
73 jobs.
New Castle Telephone Company
New Castle Telephone Company: Broadband Project to Serve Rural
Unserved Establishments
Last Mile
$1,066,321 Grant
New Castle Telephone Company (New Castle Tel), a subsidiary of TDS
Telecom, will bring high-speed broadband service to unserved premises
in its service territory. New Castle Tel is the State-certified ILEC in
Virginia. The project is designed to serve two PFSAs. These PFSAs have
300 premises (295 households, 4 businesses, and 1 anchor institution)
that have no access to broadband service. New Castle Tel has built a
broadband network that is capable of serving the majority of these
premises in several of the core communities, but the surrounding area
lacks broadband access. This project will provide access to high-speed
broadband service (20 Mbps upstream and downstream combined). The
network is engineered so that it can be easily upgraded. The project
will create or save 28 jobs.
NTELOS Telephone, Inc.
Alleghany Broadband Now Initiative
Last Mile Non-remote
$8,062,088 Grant
NTELOS Telephone, Inc., will provide broadband infrastructure to
unserved and underserved homes, businesses, and anchor institutions in
rural Alleghany County. The network will make services available to
4,216 households, 233 businesses, and 36 anchor institutions. The
project will create or save an estimated 40 jobs.
Scott County Telephone Cooperative
FTTP South Scott County
Last Mile
$7,007,700 Loan
$16,351,300 Grant
Scott County Telephone Cooperative will deploy FTTP technology in
south Scott County and a small portion of Russell County. The network
will be an active Ethernet system and will provide broadband service
speeds of up to 10 Gbps. The network will make services available to
4,581 households, 79 businesses, and 15 anchor institutions. The
project will create or save 141 jobs.
Utopian Wireless Corporation
Utopian Mineral WiMAX Project
Last Mile
$117,034 Loan
$351,099 Grant
Utopian Wireless Corporation will make available advanced 4G
wireless broadband service to underserved communities in and around the
Mineral area. The service area includes an estimated 1,864 households,
411 businesses, and 50 anchor institutions. Using licensed 2.5 GHz
spectrum, Utopian will deploy a broadband wireless system. The project
will create or save 11 jobs.
Washington
Cascade Networks, Inc.
Rural Clatskanie Broadband Initiative
Last Mile
$1,287,219 Loan
$1,287,218 Grant
Cascade Networks, Inc., in cooperation with Clatskanie People's
Utility District in Columbia County, will undertake a last-mile project
in rural Clatskanie, Oregon, to provide broadband service to 912
households, 159 businesses, and 4 anchor institutions. The project will
provide broadband to support data, voice, and IPTV services over a
hybrid system of fiber-optic and wireless equipment. The system will be
primarily FTTH, with wireless micronodes at points on the edges of the
service area where fiber is not a practical option. The project will
create or save four jobs.
EcliptixNet Broadband, Inc.
Northeast Washington Rural Broadband Access Network (NWRBAN)
Last Mile
$6,137,496 Loan
$14,320,824 Grant
EcliptixNet Broadband, Inc., will offer 4G highspeed broadband
service through fixed and mobile wireless connections to more than 90
percent of the rural premises across the counties of Ferry, Spokane,
and Stevens. The network will make services available to 27,363
households, 3,627 businesses, and 303 anchor institutions. The project
will create or save an estimated 236 jobs.
Hood Canal Telephone Co., Inc.
Mason County Connect
Last Mile
$904,000 Loan
$2,712,000 Grant
Hood Canal Telephone Co., Inc., will expand broadband service
throughout rural Mason County in western Washington. The area includes
two tribal reservations, the Skokomish and Squaxin tribes. The company
has partnered with the Squaxin Reservation to extend service to
residents living on tribal lands. In addition, the Catfish Lake, Dayton
Trails, and Pioneer areas of Mason County will receive funding for
broadband services. The project will establish a redundant
telecommunications route for Mason County's Emergency Management
headquarters and extend broadband, phone, and cable TV service to an
additional 51.8 miles in the county. The project will deliver broadband
through cable modems over an HFC system. This project will make
services available to 700 permanent residents and 37 businesses, 132
seasonal residents, and 6 anchor institutions. The project will create
or save 26 jobs.
McDaniel Telephone Company
McDaniel Telephone Company: Broadband Project to Serve Rural
Unserved Establishments
Last Mile
$1,192,951 Grant
McDaniel Telephone Company (McDaniel Tel), a subsidiary of TDS
Telecom, will build a project to bring high-speed broadband service to
unserved premises in its rural franchise service territory. McDaniel
Tel is the State-certified ILEC in Washington. The project will serve
six PFSAs that include two communities. These PFSAs have 596 premises
(574 households and 22 businesses) that have no access to broadband
service. The project will build a broadband network to provide access
to high-speed broadband service (20 Mbps upstream and downstream
combined). The network is engineered so that it can be easily upgraded.
The project will create or save 31 jobs.
Public Utility District No. 1 of Chelan County
Public Utility District No. 1 of Chelan County FTTX Rural Expansion
Last Mile
$24,963,089 Grant
Public Utility District No. 1 of Chelan County will complete the
fiber-based, high-speed broadband system it operates in Washington
State. The expanded network will make services available to 6,811
predominantly rural residential customers in 13 PFSAs. Operating in a
public-private partnership, Public Utility District provides open-
access wholesale telecommunication service to 12 local retail service
providers over an FTTH standards-based fiber-optic PON. The network
will offer speeds up to 100 Mbps to homes and small businesses, and up
to 10 Gbps to education, healthcare, large businesses, and government
institutions. This project will create or save 79 construction and 7
network jobs.
Public Utility District No. 1 of Okanogan County
Okanogan County PUD Last-Mile Project
Last Mile
$3,667,855 Loan
$5,501,782 Grant
Public Utility District No. 1 of Okanogan County will expand its
high-speed broadband service to an additional 6,543 premises in
Okanogan County. The county is home to the largest Indian reservation
in Washington, the Confederated Tribes of the Colville Reservation,
which is concurrently undertaking a broadband infrastructure project.
The Public Utility District's network focuses on the premises along the
existing fiber route where high-speed broadband service is unavailable.
The project will make services available to 5,401 households, 1,107
businesses, and 35 anchor institutions. The project will support high-
speed broadband service to 35 anchor institutions. The core backbone
will initially provide a single-threaded connection to the Internet and
function as an aggregation and transport medium throughout the county.
The optical system will be upgraded to account for the expected
increase in consumption using Ethernet transport and core IP switching
technologies. The network design calls for placement of 170 access
nodes along the existing fiber backbone route and extending the fiber
backbone 179 miles to provide necessary redundancy to the last-mile
network. The project will create or save 28 jobs.
West Virginia
Gateway Telecom, LLC
Gateway Telecom LLC West Virginia Last Mile Project
Last Mile Non-remote
$1,475,459 Loan
$1,417,597 Grant
Gateway Telecom, LLC will deploy wireless last-mile broadband
infrastructure to serve residences and anchor institutions in unserved
rural areas of West Virginia. The network will make services available
to 1,095 households. The project will create or save four jobs.
Hardy Telecommunications, Inc.
Hardy OneNet Fiber to the Home Project
Last Mile
$9,494,483 Loan
$22,153,791 Grant
Hardy Telecommunications, Inc., will serve residents in
underserved, rural, mountain communities in Hardy County. The company
will deploy an FTTH network to provide reliable ultra-high-speed
Internet access, VoIP, and video service to underserved areas. The
network will make services available to 5,595 households, 200
businesses, and 106 anchor institutions. The project will create or
save 120 jobs.
Spruce Knob Seneca Rocks Telephone, Inc.
SKSRT Rural Broadband Project
Last Mile
$8,529,310 Grant
Spruce Knob Seneca Rocks Telephone, Inc., will offer FTTP fiber-
optic capacity, with associated wireless capability, to provide last-
mile broadband service in Pendleton and Pocahontas counties. Fiber-
optic cables will be placed on existing power and telephone pole
structures along the main arteries and on existing laterals to reach
customers with broadband service speeds of up to 1 Gbps. The network
will make services available to 2,551 households, 207 businesses, and
23 anchor institutions. The project will create or save 125 jobs.
West Virginia PCS Alliance, LC
Rural Mobile Broadband Initiative--Maryland
Last Mile
$555,648 Grant
West Virginia PCS Alliance LC and NTELOS Licenses Inc., both
subsidiaries of NTELOS Holdings Corp., will expand West Virginia PCS
Alliance's existing wireless service to provide 3G mobile broadband
service in unserved rural portions of western Maryland and south-
central Pennsylvania north of Hagerstown. The PFSAs comprise 8
communities with more than 50 percent of the premises lacking high-
speed broadband service. The project will make services available to
13,104 households, 1,519 businesses, and 324 anchor institutions. The
project will create or save four jobs.
Wisconsin
Badger Telecom, LLC
Badger Telecom, LLC: Broadband Project to Serve Rural Unserved
Establishments
Last Mile
$4,080,773 Grant
Badger Telecom, LLC (Badger Tel), a subsidiary of TDS Telecom, will
provide high-speed broadband service to unserved premises in its
service territory. Badger Tel is the State-certified ILEC in Wisconsin.
The project will serve five rural PFSAs that include six communities.
These PFSAs have 867 premises (816 households, 35 businesses, and 16
anchor institutions) with no access to broadband service. The network
will deploy Ethernet-over-copper technology, provide VDSL2 access
devices that are packaged in an FTTN configuration, upgrade access in
the central office to support extension of the broadband networks to
these remote areas, use PON FTTH where economically feasible, and allow
for future PON upgrades without the need to rebuild the transport
routes. The project will create or save 107 jobs.
Baldwin Telecom, Inc.
Town of Troy FTTP Network--BTI
Last Mile
$4,533,949 Loan
$4,533,949 Grant
Baldwin Telecom, Inc. (BTI) will provide FTTP service to the Town
of Troy, on the Wisconsin-Minnesota border. BTI is working in
partnership with the town to bring high-speed data, voice, and video
service to this underserved and unserved market in western Wisconsin.
The project will make services available to 1,538 households, 30
businesses, and 2 anchor institutions. The network will provide many
residents with their first opportunity to obtain high-speed Internet
service and put in place the infrastructure to support planned business
development along the Highway 35 corridor. The project will deploy an
FTTP network to make services available to every home and business in
the PFSA and will utilize Calix GPON technology. The project will
create or save 99 jobs.
Central State Telephone Company, LLC
Central State Telephone Company, LLC: Broadband Project to Serve
Rural Unserved Establishments
Last Mile
$3,855,976 Grant
Central State Telephone Company, Inc. (Central State Tel), a
subsidiary of TDS Telecom, will deliver high-speed broadband service to
9 rural PFSAs that include 10 communities in Wisconsin. These PFSAs
have 1,384 premises (1,295 households, 76 businesses, and 13 anchor
institutions) with no access to broadband service. Central State Tel is
the State-certified ILEC in Wisconsin. The network will deploy
Ethernet-over-copper technology, provide VDSL2 access devices packaged
in an FTTN configuration, upgrade access in the central office to
support the extension of the broadband networks to these remote areas,
use PON FTTH where economically feasible, and allow for future PON
upgrades without needing to rebuild the transport routes. The network
target speed is 20 Mbps (upstream and downstream combined) or more DSL
service. The project will create or save 101 jobs.
Chequamegon Communications Cooperative, Inc.
Chequamegon Fiber-to-the-Home
Last Mile
$15,549,091 Loan
$15,549,093 Grant
Chequamegon Communications Cooperative, Inc. (CCC) will update its
facilities to offer FTTH in 3 PFSAs with 31 rural communities in
northern Wisconsin. CCC's network will make services available to 5,332
premises, providing high-speed Internet access to 3,226 new customers,
including several anchor institutions. As part of CCC's effort to bring
high-speed broadband service to this area, the company partnered with
the State of Wisconsin Office of Administration on a funded round one
project to bring high-speed Internet to schools and libraries in its
area. The project will create or save 66 jobs.
EastCoast Telecom of Wisconsin, LLC
EastCoast Telecom of Wisconsin, LLC: Broadband Project to Serve
Rural Unserved Establishments
Last Mile
$1,669,255 Grant
EastCoast Telecom of Wisconsin, LLC (EastCoast Tel), a subsidiary
of TDS Telecom, will bring high-speed broadband service to unserved
premises. EastCoast Tel is the State-certified ILEC in Wisconsin. The
project will serve four rural PFSAs in its franchise service territory.
These PFSAs have 511 premises (478 households, 27 businesses, and 6
anchor institutions) in 5 communities with no access to broadband
service. The network will deploy Ethernet-over-copper technology,
provide VDSL2 access devices that are packaged in an FTTN
configuration, upgrade access in the central office to support
extension of the broadband networks to these remote areas, use PON FTTH
where economically feasible, and allow for future PON upgrades without
the need to rebuild the transport routes. This project will build a
broadband network that will allow access to high-speed broadband
service (20 Mbps upstream and downstream combined). The project will
create or save 44 jobs.
Farmers Telephone Company, LLC
The Farmers Telephone Company, LLC: Broadband Project to Serve
Rural Unserved Establishments
Last Mile
$1,440,570 Grant
Farmers Telephone Company, LLC (Farmers Tel), a subsidiary of TDS
Telecom, will bring high-speed broadband service to unserved premises.
Farmers Tel is the State-certified ILEC in Wisconsin. The project will
serve four rural PFSAs. These PFSAs include 6 communities and have 489
premises (456 households, 30 businesses, and 3 anchor institutions)
that have no access to broadband service. This project will provide
access to high-speed broadband service (20 Mbps upstream and downstream
combined). The network is also engineered so that it can be easily
upgraded at a reasonable cost to meet future needs. The project will
create or save 38 jobs.
Grantland Telecom, LLC
Grantland Telecom, LLC: Broadband Project to Serve Rural Unserved
Establishments
Last Mile
$1,655,504 Grant
Grantland Telecom, LLC (Grantland Tel), a subsidiary of TDS
Telecom, will bring high-speed broadband service to unserved premises.
Grantland Tel is the State-certified ILEC in Wisconsin. The project
will serve six rural PFSAs that include seven communities in the
franchise service territory. These PFSAs have 346 premises (332
households, 12 businesses, and 2 anchor institutions) with no access to
broadband service. The project will deploy Ethernet-over-copper
technology, provide VDSL2 access devices that are packaged in an FTTN
configuration, upgrade access in the central office to support the
extension of the broadband networks to these remote areas, use PON FTTH
where economically feasible, and allow for future PON upgrades without
the need to rebuild the transport routes. The project will provide
access to high-speed broadband service (20 Mbps upstream and downstream
combined). The project will create or save 44 jobs.
Marquette-Adams Telephone Cooperative, Inc.
Broadband Edge Out Marquette-Adams Telephone Cooperative
Last Mile
$6,202,326 Loan
$13,805,175 Grant
Marquette-Adams Telephone Cooperative, Inc., will extend fiber-
optic service from the existing telephone cooperative service area to
surrounding unserved rural areas in central Wisconsin. The network will
make services available to 4,488 households, 144 businesses, and 12
anchor institutions. The project will create or save three jobs.
Midway Telephone Company
Midway Telephone Company: Broadband Project to Serve Rural Unserved
Establishments
Last Mile
$4,680,738 Grant
Midway Telephone Company (Midway Tel), a subsidiary of TDS Telecom,
will bring high-speed broadband service to unserved premises. Midway
Tel is the State-certified ILEC in Wisconsin. The project will serve
seven PFSAs that include seven communities. These PFSAs have 1,201
premises (1,129 households, 52 businesses, and 20 anchor institutions)
that have no access to broadband service. This project will provide
access to high-speed broadband service (20 Mbps upstream and downstream
combined). The network is engineered so that it can be easily upgraded.
The project will create or save 123 jobs.
Reedsburg Utility Commission, Inc.
Reedsburg Utility Commission Fiber Network Expansion
Last Mile
$5,239,168 Grant
Reedsburg Utility Commission, Inc., will extend an existing
municipal FTTP network, operated by the City of Reedsburg acting
through the Reedsburg Utility Commission, to the surrounding rural area
to provide affordable advanced broadband service to residents and
businesses that receive dial-up service, wireless, and satellite
services. This rural area of southwestern Wisconsin has been well
documented as deficient in broadband service due to the hilly terrain
and numerous valleys that severely limit wireless and satellite service
coverage. The network will make services available to 2,438 households,
145 businesses, and 12 anchor institutions. The project will create or
save 45 jobs.
Riverside Telecom, LLC
Riverside Telecom, LLC: Broadband Project to Serve Rural Unserved
Establishments
Last Mile
$818,687 Grant
Riverside Telecom, LLC (Riverside Tel), a subsidiary of TDS
Telecom, will bring high-speed broadband service to unserved premises.
Riverside Tel is the State-certified ILEC in Wisconsin. The project
will serve three rural PFSAs. These PFSAs have 2 communities with 219
premises (208 households, 6 businesses, and 5 anchor institutions) with
no access to broadband service. The project will build a broadband
network to offer speeds of up to 20 Mbps upstream and downstream
combined or DSL service. The project will deploy Ethernet-over-copper
technology, provide VDSL2 access devices that are packaged in an FTTN
configuration, upgrade access in the central office to support the
extension of broadband networks to these remote areas, use PON FTTH
where economically feasible, and allow for future PON upgrades without
needing to rebuild the transport routes. The project will create or
save 22 jobs.
Scandinavia Telephone Company, LLC
Scandinavia Telephone Company, LLC: Broadband Project to Serve
Rural Unserved Establishments
Last Mile
$1,238,809 Grant
Scandinavia Telephone Company, LLC (Scandinavia Tel), a subsidiary
of TDS Telecom, will bring highspeed broadband service to unserved
premises in its rural franchise territory. Scandinavia Tel is the
State-certified ILEC in Wisconsin. The project will serve two rural
PFSAs that include four communities. Within the PFSAs, there are 462
premises (446 households, 11 businesses, and 5 anchor institutions)
that have no broadband service. The project will deploy Ethernet-over-
copper technology, provide VDSL2 access devices that are packaged in an
FTTN configuration, upgrade access in the central office to support the
extension of the broadband networks to these remote areas, use PON FTTH
where economically feasible, and allow for future PON upgrades without
having to rebuild the transport routes. The target speed is 20 Mbps
(upstream and downstream combined). The project will create or save 33
jobs.
Southeast Telephone Co. of Wisconsin, LLC
Southeast Telephone Co. of Wisconsin, LLC: Broadband Project to
Serve Rural Unserved Establishments
Last Mile
$947,555 Grant
Southeast Telephone Co., of Wisconsin, LLC (Southeast Tel), a
subsidiary of TDS Telecom, will provide high-speed broadband service to
unserved premises. Southeast Tel is the State-certified ILEC in
Wisconsin. The project will serve three PFSAs with three communities in
Southeast Tel's service territory. These PFSAs have 554 premises (534
households, 19 businesses, and 1 anchor institution) with no access to
broadband service. The network will deploy Ethernet-over-copper
technology to its fullest potential, provide VDSL2 access devices
packaged in an FTTN configuration, upgrade access in the central office
to support the extension of the broadband networks to these remote
areas, use PON FTTH where economically feasible, and allow for future
PON upgrades without needing to rebuild the transport routes. The
target speed is 20 Mbps (upstream and downstream combined) or more DSL
service. The project will create or save 25 jobs.
Stockbridge & Sherwood Telephone Company, LLC
Stockbridge & Sherwood Telephone Company: Broadband Project to
Serve Rural Unserved Establishments
Last Mile
$1,837,421 Grant
Stockbridge & Sherwood Telephone Company, LLC (Stockbridge &
Sherwood Tel), a subsidiary of TDS Telecom, will provide high-speed
broadband service to unserved premises. Stockbridge & Sherwood Tel is
the State-certified ILEC in Wisconsin. The project will serve four
PFSAs that include six communities. These PFSAs have 629 premises (592
households, 32 businesses, and 5 anchor institutions) with no access to
broadband service. The network will deploy Ethernet-over-copper
technology to its fullest potential, provide VDSL2 access devices
packaged in an FTTN configuration, upgrade access in the central office
to support the extension of the broadband networks to these remote
areas, use PON FTTH where economically feasible, and allow for future
PON upgrades without needing to rebuild the transport routes. The
target speed is 20 Mbps (upstream and downstream combined) or more DSL
service. This project will create or save 48 jobs.
UTELCO, LLC
UTELCO, LLC: Broadband Project to Serve Rural Unserved
Establishments
Last Mile
$2,823,526 Grant
UTELCO, LLC, a subsidiary of TDS Telecom, will provide high-speed
broadband service to unserved premises in its rural service territory.
The project will serve eight PFSAs that include six communities. These
PFSAs have 844 premises (786 households, 50 businesses, and 8 anchor
institutions) with no access to broadband service. UTELCO is the State-
certified ILEC in Wisconsin. The network will deploy Ethernet-over-
copper technology to its fullest potential, provide VDSL2 access
devices packaged in an FTTN configuration, upgrade access in the
central office to support the extension of the broadband networks to
these remote areas, use PON FTTH where economically feasible, and allow
for future PON upgrades without needing to rebuild the transport
routes. The target speed is 20 Mbps (upstream and downstream combined)
or more DSL service. This project will create or save 74 jobs.
The U.S. Department of Agriculture (USDA) prohibits discrimination
in all of its programs and activities on the basis of race, color,
national origin, age, disability, and where applicable, sex, marital
status, familial status, parental status, religion, sexual orientation,
political beliefs, genetic information, reprisal, or because all or
part of an individual's income is derived from any public assistance
program. (Not all prohibited bases apply to all programs.) Persons with
disabilities who require alternative means for communication of program
information (Braille, large print, audiotape, etc.) should contact
USDA's TARGET Center at (202) 720-2600 (voice and TDD).
To file a complaint of discrimination, write to USDA, Assistant
Secretary for Civil Rights, Office of the Assistant Secretary for Civil
Rights, 1400 Independence Avenue, S.W., Stop 9410, Washington, DC
20250-9410, or call toll-free at (866) 632-9992 (English) or (800) 877-
8339 (TDD) or (866) 377-8642 (English Federal-relay) or (800) 845-6136
(Spanish Federal-relay). USDA is an equal opportunity provider and
employer.
Attachment 2
Status of 255 Active BIP Awards as of July 27, 2014
------------------------------------------------------------------------
Total
Project Awardee Name Total Award Project Project
Designation Budget Status
------------------------------------------------------------------------
IA1112-A40 LaMotte $375,630 $375,630 Partially
Telephone Operational
Company, Stage
Inc.
IA1114-A40 Farmers' $18,735,853 $18,735,853 Partially
Telephone Operational
Company of Stage
Riceville,
Iowa, The
IA1115-A40 Ellsworth $5,268,696 $5,268,696 Operational
Cooperative Stage
Telephone
Association
IA1116-A40 Breda $2,611,909 $2,611,909 Partially
Telephone Operational
Corp. Stage
IA1117-A40 Clear Lake $7,910,462 $7,910,462 Operational
Independent Stage
Telephone
Co. Inc.
IA1119-A40 Hospers $8,325,402 $8,325,402 Operational
Telephone Stage
Exchange,
Inc.
IA1120-A40 Winnebago $19,632,404 $19,632,404 Partially
Cooperative Operational
Telecom Stage
Association
IA1121-B39 Windstream $5,163,935 $7,604,746 Partially
Corporation Operational
Stage
IA1121-C39 Windstream $12,236,836 $17,227,795 Partially
Corporation Operational
Stage
IA1122-A40 Southwest $5,987,330 $5,987,330 Partially
Telephone Operational
Exchange, Stage
Inc.
IA1123-A39 Municipal $873,433 $1,746,866 Partially
Electric Operational
Utility of Stage
the City of
Cedar
Falls, Iowa
ID1103-A40 Coeur $12,285,758 $12,285,758 Partially
d'Alene Operational
Tribe Stage
ID1104-A40 Rural $2,429,000 $2,429,000 Partially
Telephone Operational
Company Stage
ID1107-A40 Midvale $1,116,412 $1,116,412 Partially
Telephone Operational
Company Stage
ID1107-B40 Midvale $1,269,171 $1,269,171 Partially
Telephone Operational
Company Stage
ID1107-C40 Midvale $2,146,814 $2,146,814 Partially
Telephone Operational
Company Stage
IL1103-A40 Shawnee $7,352,929 $8,442,933 Operational
Telephone Stage
Company
IL1104-A40 Convergence $11,250,000 $11,265,250 Partially
Technologie Operational
s, Inc. Stage
IN1104-A40 Sunman $11,389,222 $11,389,222 Partially
Telecommuni Operational
cations Stage
Corporation
KS1103-A40 Rural $101,201,649 $101,229,742 Partially
Telephone Operational
Service Stage
Company,
Inc.
KS1104-B40 J.B.N. $3,324,144 $3,324,144 Partially
Telephone Operational
Company, Stage
Inc.
KS1105-A40 Madison $7,039,500 $7,039,500 Partially
Telephone, Operational
LLC Stage
KS1106-A39 South $871,200 $903,789 Partially
Central Operational
Telephone Stage
Association
, Inc.
KS1107-A40 H&B $6,551,519 $6,558,616 Partially
Communicati Operational
ons, Stage
Incorporate
d
KS1108-A40 South $1,117,621 $1,209,418 Partially
Central Operational
Wireless, Stage
Inc.
KS1109-A39 Iowa Tribe $764,833 $764,833 Partially
of Kansas Operational
and Stage
Nebraska
KS1110-A40 Peoples $7,782,123 $8,033,003 Partially
Telecommuni Operational
cations LLC Stage
KS1111-A40 Home $2,004,879 $2,004,879 Partially
Communicati Operational
ons, Inc. Stage
KS1112-A40 Wave $2,476,588 $2,599,955 Partially
Wireless, Operational
L.L.C. Stage
KY1104-A40 Mountain $78,124,579 $78,124,579 Partially
Rural Operational
Telephone Stage
Cooperative
Corporation
, Inc.
KY1105-B40 Thacker- $7,408,474 $7,408,474 Partially
Grigsby Operational
Telephone Stage
Company,
Incorporate
d
KY1106-B39 Leslie $6,169,295 $8,225,727 Partially
County Operational
Telephone Stage
Company
KY1107-B40 West $123,800,000 $123,800,000 Partially
Kentucky Operational
Rural Stage
Telephone
Cooperative
Corporation
, Inc.
KY1108-A40 Foothills $20,972,482 $20,972,482 Partially
Rural Operational
Telephone Stage
Cooperative
Corporation
, Inc.
KY1109-A39 Mikrotec $829,813 $1,115,400 Partially
CATV, LLC Operational
Stage
KY1110-A40 Peoples $25,514,182 $25,514,182 Partially
Rural Operational
Telephone Stage
Cooperative
Corporation
, Inc.
LA1101-E40 LBH, LLC $33,385,378 $33,385,378 Partially
Operational
Stage
LA1104-A40 Northeast $12,483,600 $12,483,600 Partially
Louisiana Operational
Telephone Stage
Company,
Inc.
LA1106-A39 Nexus $724,256 $865,675 Partially
Systems, Operational
Inc. Stage
ME1102-B39 West $1,554,981 $2,073,308 Partially
Penobscot Operational
Telephone Stage
And
Telegraph
Company,
The
ME1103-B39 Somerset $5,840,363 $7,787,151 Partially
Telephone Operational
Company Stage
Inc.
MI1102-E40 Air $64,250,000 $74,515,368 Partially
Advantage, Operational
LLC Stage
MI1105-B40 Southwest $8,331,025 $8,501,305 Operational
Michigan Stage
Communicati
ons, Inc.
MI1106-A39 Chatham $8,605,935 $9,826,434 Partially
Telephone Operational
Company Stage
MI1107-B39 Island $2,001,528 $2,668,704 Construction
Telephone Stage
Company
MI1108-A40 Climax $3,217,499 $4,290,000 Operational
Telephone Stage
Company
MI1109-B40 Crystal $26,497,424 $26,497,424 Partially
Automation Operational
Systems, Stage
Inc.
MI1110-A39 Allband $8,622,754 $9,037,754 Partially
Communicati Operational
ons Stage
Cooperative
MI1110-B39 Allband $1,107,903 $1,255,403 Partially
Communicati Operational
ons Stage
Cooperative
MN1108-A40 Halstad $4,055,200 $4,141,831 Operational
Telephone Stage
Company
MN1108-B40 Halstad $493,000 $501,911 Operational
Telephone Stage
Company
MN1108-D40 Halstad $6,555,000 $7,257,864 Operational
Telephone Stage
Company
MN1109-A40 Southwest $12,700,250 $13,067,297 Operational
Minnesota Stage
Broadband
Services
MN1110-A40 Minnesota $1,125,552 $1,125,552 Operational
Valley Stage
Television
Improvement
Corporation
MN1111-A40 Northeast $43,498,220 $43,532,647 Partially
Service Operational
Cooperative Stage
MN1112-A40 Federated $1,260,578 $1,260,578 Partially
Telephone Operational
Cooperative Stage
MN1112-B40 Federated $2,987,274 $2,987,274 Partially
Telephone Operational
Cooperative Stage
MN1113-A40 Wikstrom $7,398,600 $7,398,600 Partially
Telephone Operational
Company, Stage
Incorporate
d
MN1115-A40 Farmers $9,652,956 $9,652,956 Partially
Mutual Operational
Telephone Stage
Company
MN1116-B39 Arvig $5,048,168 $6,730,890 Partially
Telephone Operational
Company Stage
MN1117-A40 Sjoberg's $866,060 $866,060 Partially
Inc. Operational
Stage
MN1118-B40 Lake, County $66,369,064 $71,727,729 Partially
of Operational
Stage
MN1119-A40 Arrowhead $16,137,484 $20,737,484 Partially
Electric Operational
Cooperative Stage
Inc.
MO1104-A40 Ralls County $19,097,817 $19,097,817 Partially
Electric Operational
Cooperative Stage
MO1105-A40 Northeast $10,280,916 $11,496,386 Operational
Missouri Stage
Rural
Telephone
Company
MO1105-B40 Northeast $7,191,620 $7,191,620 Operational
Missouri Stage
Rural
Telephone
Company
MO1106-A40 Grand River $11,395,606 $11,395,606 Partially
Mutual Operational
Telephone Stage
Corporation
MO1106-B39 Grand River $12,363,759 $13,304,759 Partially
Mutual Operational
Telephone Stage
Corporation
MO1106-C39 Grand River $8,970,781 $9,365,281 Partially
Mutual Operational
Telephone Stage
Corporation
MO1106-D40 Grand River $9,294,309 $12,637,309 Partially
Mutual Operational
Telephone Stage
Corporation
MO1106-E40 Grand River $20,270,861 $20,270,861 Partially
Mutual Operational
Telephone Stage
Corporation
MO1107-B40 Socket $23,734,482 $23,984,482 Partially
Telecom, Operational
LLC Stage
MO1108-A40 Big River $24,382,055 $28,707,655 Partially
Broadband, Operational
LLC Stage
MO1110-A40 United $21,213,106 $23,457,849 Operational
Electric Stage
Cooperative
, Inc.
MS1104-A40 National $1,588,417 $1,588,417 Operational
Telephone Stage
of Alabama,
Inc.
MS1105-A39 Smithville $7,110,886 $7,247,796 Partially
Telephone Operational
Company, Stage
Incorporate
d
MT1102-A40 Project $15,549,479 $15,549,479 Partially
Telephone Operational
Company Stage
MT1102-B40 Project $3,850,687 $3,850,687 Partially
Telephone Operational
Company Stage
MT1104-B40 Montana $64,127,322 $64,127,322 Construction
Opticom, Stage
LLC
NC1103-A40 French Broad $1,775,692 $2,008,307 Partially
Electric Operational
Membership Stage
Corporation
NC1104-A40 Skyline $28,985,294 $28,985,294 Operational
Telephone Stage
Membership
Corporation
NC1105-A40 Atlantic $16,003,418 $16,003,418 Operational
Telephone Stage
Membership
Corporation
NC1106-A40 Country $25,297,000 $25,308,745 Partially
Cablevision Operational
Inc. Stage
NC1107-B40 Lumbee River $19,947,739 $19,947,739 Construction
Electric Stage
Membership
Corp.
NC1108-A40 Wilkes $21,611,000 $21,611,000 Partially
Telephone Operational
Membership Stage
Corporation
NC1109-A40 The Yadkin $21,668,232 $21,668,232 Partially
Valley Operational
Telephone Stage
Membership
Corporation
NC1110-A40 Tri-County $14,147,215 $16,215,440 Partially
Telephone Operational
Membership Stage
Corporation
ND1103-A40 BEK $4,003,044 $8,249,967 Operational
Communicati Stage
ons
Cooperative
ND1104-A39 Dakota $2,252,250 $3,079,172 Operational
Central Stage
Telecom I,
Inc.
ND1105-A40 Reservation $21,900,000 $23,400,000 Partially
Telephone Operational
Cooperative Stage
ND1106-B40 Consolidated $11,564,722 $20,968,040 Partially
Enterprises Operational
, Inc. Stage
ND1107-A40 SRT $4,429,516 $6,629,516 Operational
Communicati Stage
ons Inc.
ND1108-A40 Inter- $2,338,651 $2,731,836 Construction
Community Stage
Telephone
Company
Inc.
ND1109-A40 Griggs $22,096,041 $22,814,197 Partially
County Operational
Telephone Stage
Co.
ND1110-A40 Red River $9,088,438 $9,737,041 Partially
Rural Operational
Telephone Stage
Assn.
(Inc.)
NE1103-A40 Southeast $11,285,367 $14,209,941 Operational
Nebraska Stage
Communicati
ons, Inc.
NH1101-A39 Bretton $985,000 $985,000 Partially
Woods Operational
Telephone Stage
Company,
Inc.
NM1104-A40 Baca Valley $3,237,000 $3,237,000 Operational
Telephone Stage
Company,
Inc.
NM1105-A40 Penasco $9,589,267 $9,589,267 Partially
Valley Operational
Telephone Stage
Cooperative
, Inc.
NM1107-A40 Kit Carson $63,768,671 $63,779,376 Partially
Electric Operational
Cooperative Stage
, Inc.
NM1108-B40 La Jicarita $11,856,832 $11,856,832 Partially
Rural Operational
Telephone Stage
Cooperative
NV1103-A39 Reno-Sparks $400,000 $400,000 Contracting
Indian Stage
Colony
NV1105-A40 Arizona $7,588,832 $7,736,832 Partially
Nevada Operational
Tower Stage
Corporation
NY1103-A40 SLIC Network $5,328,642 $5,328,642 Partially
Solutions, Operational
Inc. Stage
NY1103-B40 SLIC Network $27,832,767 $27,832,767 Partially
Solutions, Operational
Inc. Stage
NY1104-A40 Castle Cable $7,168,559 $7,168,559 Partially
TV Operational
Stage
NY1105-A40 Saint Regis $10,562,517 $10,562,517 Partially
Mohawk Operational
Tribe Stage
OH1104-C40 Hometown $4,627,306 $4,627,306 Partially
Cable, LLC Operational
Stage
OH1106-A40 Consolidated $2,433,912 $3,658,512 Operational
Electric Stage
Cooperative
, Inc.
OH1107-A40 The Benton $3,159,066 $3,159,066 Operational
Ridge Stage
Telephone
Co.
OH1108-A40 INTELLIWAVE, $2,279,596 $2,329,596 Partially
LLC Operational
Stage
OH1109-A40 Wabash $4,375,829 $5,913,283 Partially
Mutual Operational
Telephone Stage
Company
OH1110-B40 Southern $1,448,441 $1,599,972 Partially
Ohio Operational
Communicati Stage
on
Services,
Inc.
OH1111-A40 Sycamore $4,149,455 $4,149,455 Partially
Telephone Operational
Company Stage
(Inc.)
OH1113-A40 New Era $2,954,929 $2,954,929 Partially
Broadband Operational
Stage
OK1110-A39 The Pine $9,482,316 $9,482,316 Partially
Telephone Operational
Company Stage
OK1110-D40 The Pine $30,163,917 $30,163,917 Partially
Telephone Operational
Company Stage
OK1110-F40 The Pine $9,754,430 $9,754,430 Partially
Telephone Operational
Company Stage
OK1111-A40 Totah $8,512,465 $8,512,465 Operational
Communicati Stage
ons, Inc.
OK1113-A40 Pioneer Long $3,602,671 $3,602,671 Operational
Distance, Stage
Inc.
OK1115-A40 @Link $8,547,357 $8,547,357 Partially
Services, Operational
LLC Stage
OK1118-B40 Medicine $404,706 $404,706 Operational
Park Stage
Telephone
Company
OK1118-F40 Medicine $2,658,210 $2,658,210 Construction
Park Stage
Telephone
Company
OR1102-B40 Monroe $5,654,734 $5,654,734 Partially
Telephone Operational
Company, Stage
Inc.
OR1104-A40 Gervais $628,860 $628,860 Operational
Telephone Stage
Company
OR1105-A40 City of $749,085 $1,172,595 Operational
Sandy, Stage
Oregon
OR1107-A40 Warm Springs $5,445,920 $5,445,920 Partially
Telecommuni Operational
cations Stage
Company
OR1108-A40 Cascade $5,197,732 $5,197,732 Partially
Utilities, Operational
Inc. Stage
OR1109-A40 Trans- $2,360,393 $2,360,393 Partially
Cascades Operational
Telephone Stage
Company
SC1104-A40 Orangeburg $13,987,499 $18,950,000 Partially
County Operational
Stage
SD1101-B40 Midstate $9,093,728 $9,093,728 Partially
Communicati Operational
ons, Inc. Stage
SD1107-A40 Triotel $12,347,375 $12,347,375 Partially
Communicati Operational
ons, Inc. Stage
SD1108-A40 Venture $5,229,913 $5,229,913 Operational
Communicati Stage
ons
Cooperative
TN1102-A40 North $49,679,709 $50,886,489 Partially
Central Operational
Telephone Stage
Cooperative
Corporation
TN1103-A40 Twin Lakes $32,153,667 $32,161,819 Partially
Telephone Operational
Cooperative Stage
Corporation
TN1104-B40 Highland $66,489,162 $66,539,268 Partially
Telephone Operational
Cooperative Stage
, Inc.
TN1105-A40 Millington $3,806,622 $4,029,521 Partially
Telephone Operational
Company, Stage
Inc.
TN1106-A40 Bledsoe $5,091,173 $6,937,461 Partially
Telephone Operational
Cooperative Stage
Corporation
TX1113-A40 Valley $78,614,021 $78,614,021 Partially
Telephone Operational
Cooperative Stage
, Inc.
TX1114-A40 PRIDE $44,550,100 $44,550,100 Partially
Network, Operational
Inc. Stage
TX1114-B40 PRIDE $19,121,002 $19,121,002 Partially
Network, Operational
Inc. Stage
TX1114-C40 PRIDE $36,198,857 $36,198,857 Partially
Network, Operational
Inc. Stage
TX1115-B39 XIT Rural $3,065,440 $6,256,000 Operational
Telephone Stage
Cooperative
, Inc.
TX1115-C39 XIT Rural $2,112,950 $6,037,000 Operational
Telephone Stage
Cooperative
, Inc.
TX1116-A40 Wes-Tex $33,783,750 $33,783,750 Partially
Telephone Operational
Cooperative Stage
, Inc.
TX1117-A40 Blossom $2,777,676 $2,777,676 Partially
Telephone Operational
Company, Stage
Inc.
TX1119-A40 Mid-Plains $2,809,000 $2,809,000 Operational
Rural Stage
Telephone
Cooperative
, Inc.
TX1120-A40 Electronic $1,893,298 $1,893,298 Partially
Corporate Operational
Pages, Inc. Stage
TX1122-A40 Hill Country $12,234,217 $12,234,217 Partially
Telephone Operational
Cooperative Stage
, Inc.
UT1103-A40 Central Utah $1,862,070 $2,099,070 Partially
Telephone, Operational
Inc. Stage
VA1108-A39 LUMOS $8,062,088 $12,093,143 Partially
Telephone Operational
Inc. Stage
VA1109-A39 West $3,104,486 $7,143,574 Operational
Virginia Stage
PCS
Alliance,
L.C.
VA1110-A40 Sunset $24,529,393 $24,529,393 Partially
Digital Operational
Communicati Stage
ons, Inc.
VA1112-A40 Scott County $24,850,000 $24,850,000 Partially
Telephone Operational
Co- Stage
operative
VT1103-A40 VTEL $116,830,835 $116,830,835 Partially
Wireless, Operational
Inc. Stage
VT1104-A40 Waitsfield- $5,559,975 $5,559,975 Partially
Fayston Operational
Telephone Stage
Co., Inc.
WA1102-B40 Hood Canal $3,616,000 $3,616,000 Partially
Telephone Operational
Co., Inc. Stage
WA1106-A40 Public $9,169,637 $9,169,637 Partially
Utility Operational
District 1 Stage
Of Okanogan
County
WA1108-A40 Cascade $3,731,069 $4,979,272 Partially
Networks, Operational
Inc. Stage
WA1109-A40 Ecliptixnet $20,458,320 $20,458,320 Partially
Broadband, Operational
Inc. Stage
WI1102-B40 Baldwin $9,067,898 $9,381,279 Operational
Telecom, Stage
Inc.
WI1106-B40 Marquette- $20,007,501 $20,099,590 Operational
Adams Stage
Telephone
Cooperative
, Inc.
WI1107-A39 Reedsburg $5,239,168 $9,414,941 Operational
Utility Stage
Commission
WI1108-A39 Farmers $1,440,570 $1,920,760 Partially
Telephone Operational
Company, Stage
LLC, The
WI1109-A39 McDaniel $1,192,951 $1,590,602 Partially
Telephone Operational
Company Stage
WI1110-A39 Orchard Farm $604,794 $806,392 Partially
Telephone Operational
Co. Stage
WI1111-A39 Salem $1,934,474 $2,579,299 Partially
Telephone Operational
Company Stage
WI1112-A39 Midway $4,680,738 $6,240,984 Partially
Telephone Operational
Company Stage
WI1113-A39 Deposit $3,143,839 $4,191,786 Partially
Telephone Operational
Company, Stage
Inc.
WI1114-A39 Southeast $1,875,204 $2,500,272 Partially
Mississippi Operational
Telephone Stage
Company,
Inc.
WI1115-A39 Peoples $4,163,589 $5,551,452 Partially
Telephone Operational
Company, Stage
Inc.
WI1116-A39 Port Byron $639,218 $852,290 Partially
Telephone Operational
Co. Inc. Stage
WI1117-A39 New Castle $1,066,321 $1,421,762 Partially
Telephone Operational
Company Stage
WI1118-A39 Camden $1,089,955 $1,453,273 Partially
Telephone Operational
Company Stage
Inc.
WI1119-A39 Communicatio $1,221,811 $1,629,082 Partially
n Operational
Corporation Stage
of Michigan
WI1120-A39 Eastcoast $1,669,255 $2,225,673 Partially
Telecom of Operational
Wisconsin, Stage
LLC
WI1121-A39 Grantland $1,655,504 $2,207,339 Partially
Telecom, Operational
LLC Stage
WI1122-A39 Riverside $818,687 $1,091,583 Partially
Telecom, Operational
LLC Stage
WI1123-A39 Scandinavia $1,238,809 $1,651,746 Partially
Telphone Operational
Company, Stage
LLC
WI1124-A39 Tri-County $593,273 $791,030 Partially
Telephone Operational
Company Stage
Inc.
WI1125-A39 Home $416,743 $555,658 Partially
Telephone Operational
Company Stage
Inc.
WI1126-A39 Tennessee $5,150,691 $6,867,588 Partially
Telephone Operational
Company Stage
WI1127-A40 Chequamegon $31,098,184 $31,186,621 Partially
Communicati Operational
ons Stage
Cooperative
Inc.
WI1128-A39 Tipton $1,011,971 $1,349,295 Partially
Telephone Operational
Company Stage
Inc.
WI1129-A39 Mid-America $1,143,784 $1,525,045 Partially
Telephone, Operational
Inc. Stage
WI1130-A39 Wyandotte $702,933 $937,244 Partially
Telephone Operational
Company Stage
WI1131-A39 Hartland and $2,009,522 $2,679,362 Partially
St. Albans Operational
Telephone Stage
Company
WI1132-A39 Badger $4,080,773 $5,441,031 Partially
Telecom, Operational
LLC Stage
WI1133-A39 Central $3,855,976 $5,141,302 Partially
State Operational
Telephone Stage
Company,
LLC
WI1134-A39 Kearsarge $372,532 $496,709 Partially
Telephone Operational
Company Stage
WI1135-A39 Merrimack $2,021,197 $2,694,930 Partially
County Operational
Telephone Stage
Company
WI1136-A39 UTELCO, LLC $2,823,526 $3,764,702 Partially
Operational
Stage
WI1137-A39 Potlatch $2,013,722 $2,684,963 Partially
Telephone Operational
Company Stage
WI1138-A39 Stockbridge $1,837,421 $2,449,895 Partially
& Sherwood Operational
Telephone Stage
Company,
LLC
WI1139-A39 Blue Ridge $853,768 $1,138,358 Partially
Telephone Operational
Company Stage
WI1140-A39 Calhoun City $2,962,169 $3,949,559 Partially
Telephone Operational
Company, Stage
Inc.
WI1141-A39 Southeast $947,555 $1,263,407 Partially
Telephone Operational
Co. of Stage
Wisconsin,
LLC
WI1142-A39 Oklahoma $3,570,745 $4,760,993 Partially
Communicati Operational
on Systems, Stage
Inc.
WI1143-A39 Quincy $1,363,547 $1,818,062 Partially
Telephone Operational
Company Stage
WV1103-A40 Hardy $31,648,274 $31,648,274 Partially
Telecommuni Operational
cations, Stage
Inc.
WV1104-A39 Spruce Knob $8,529,310 $8,529,310 Partially
Seneca Operational
Rocks Stage
Telephone,
Inc.
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[all]