USDA's internet project fails in Louisiana

11/2/2011

The United States Agricultural Department provided a $267 million USDA loan to now defunct wireless internet provider Open Range in 2008, the Washington Post reported. The federal loan was given to Open Range as part of a nationwide policy promoted by both the Bush and Obama administrations to provide high-speed internet service to isolated areas of the country. However, the company closed its doors that October.

A similar scenario recently took place when the Commerce Department revoked an $80.6 million grant to provide broadband internet to Louisiana residents. It was intended to create a 900-mile line of fiber optic cable that stretched across "economically distressed" portions of the state.

However, the state fell behind schedule after the project didn't meet the guidelines set forth by the National Telecommunications and Information Administration, and subsequently there wasn't enough time to put new technical and financial details into place.

"We have worked closely with the state throughout the last several months to rescue this project but have now concluded that we have to move on," said assistant secretary of commerce and head of the NTIA, Lawrence Strickling.

The failure marks the fourth unsuccessful NTIA project out of 233 awards it granted to areas in need.