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U.S. Department of Agriculture Announces $103 Million in Broadband Grants/Loans

Phillip Dampier August 29, 2011 Broadband Speed, Public Policy & Gov't, Rural Broadband, Wireless Broadband No Comments

The U.S. Department of Agriculture has announced more than $103 million in federal grants and loans to 16 states to help expand broadband, or high-speed, Internet access to unserved and underserved areas of rural America:

Community Connect Grantee Community State Award Amount
R&S Communications LLC Vina Town Alabama $570,800
Crystal Broadband Networks, Inc. Birdsong Town Arkansas $570,800
Cable Partner.Net Inc. Whelen Springs Town Arkansas $570,800
Karuk Tribe Orleans California $1,141,870
Crystal Broadband Networks, Inc. Heidelberg Kentucky $576,400
Crystal Broadband Networks, Inc. Yellow Rock Kentucky $583,400
Inter Mountain Cable Inc. Endicott Kentucky $993,339
Nexus Systems Inc. Manifest Louisiana $1,116,505
Nexus Systems Inc. Larto Louisiana $1,116,505
Plateau Wireless LLC Olean Town Missouri $570,800
Plateau Wireless LLC Brumley Town Missouri $570,800
Arizona Nevada Tower Corporation Gabbs City Nevada $1,046,798
Crystal Broadband Networks, Inc. Stafford Village Ohio $570,800
Wichita Online Inc. Cornish Town Oklahoma $494,000
Wichita Online Inc. Tushka Town Oklahoma $480,000
Wichita Online Inc. Leon Town Oklahoma $481,000
Scott County Telephone Cooperative Flat Top Virginia $1,500,000
Crystal Broadband Networks, Inc. Panther West Virginia $571,900
Infrastructure Loan Awards
Wabash Telephone Exchange Illinois $21,867,000
The Hemingford Cooperative Telephone Co. Nebraska $10,280,000
Coleman County Telephone Cooperative Inc. Texas $22,540,000
Vernon Telephone Cooperative Wisconsin $24,143,000
Dubois Telephone Exchange Wyoming $11,391,000

The providers involved offer a mix of technology, ranging from traditional cable companies like Inter Mountain Cable and Crystal Broadband Networks — to Wireless ISPs like Wichita Online, serving southwestern Oklahoma, to rural telephone company DSL provided by companies like Hemingford Cooperative Telephone and the Coleman County Telephone Cooperative.

What most rural providers have in common are much-higher prices for slower speed service over what urban customers pay, and a regular need for resources to update capacity and the number of potential customers served.  Most of these grants and loans are expected to cover some of those costs.

Ouch. Rural Americans pay substantially higher prices for broadband service than city-dwellers do. This is current pricing from Inter Mountain Cable, which serves parts of rural Kentucky.

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