Loan will provide internet, jobs to 15 states

11/15/2011

The United States Department of Agriculture recently announced its intentions to disperse $410.7 million among 15 states under its Rural Utilities Service program.

There will be at least 22 projects that will receive funding via USDA loans, such as the Fiber-To-The Home initiative being implemented by both Kansas-based S&T Telephone Cooperative Association and Minnesota's Paul Bunyan Rural Telephone Cooperative.

"Today's funding will provide residents of these rural communities with high speed internet connections to improve healthcare and educational opportunities and connect to global markets," said Agriculture Sectary Tom Vilsack. He added that the investments will increase long-term employment positions in rural areas.

Other projects include an initiative in Idaho and Utah by Albion Telephone Company, which will use more than $17 million to install 453 miles of buried fiber optic cables throughout a Fiber-To-The-Premises system. Also, Wisconsin's Union Telephone Company plans to use more than $13 million to deploy above 330 miles of fiber to provide 60 percent of subscribers with improved broadband services.

However, Fierce Telecom warns that RUS funding will be under tighter scrutiny from the House Energy and Commerce committee following broadband failures in Florida and Louisiana due to the recent bankruptcy of provider Open Range.