Department of Agriculture Announces Broadband Investments To Spur Job Creation and Economic Opportunity in Rural America

The Department of Agriculture announced support for telecommunications projects in seven states to improve broadband service to rural residents and businesses. In all, USDA is announcing almost $40 million in loans for projects in Georgia, Illinois, Iowa, Kansas, North Dakota, Montana and Oklahoma.

The telephone companies and cooperatives that have been selected to receive the financing will construct more than 1,000 miles of Fiber-To-The-Premises (FTTP) systems. USDA Rural Development funded more than 16,000 miles of FTTP projects during fiscal year 2010 to upgrade, expand or replace networks and perform system maintenance. Projects selected include an $8.7 million award to the Alhambra-Grantfork Telephone Company, in Alhambra, Ill., to build an FTTP system and make system improvements to serve new and existing consumers. Woodhull Telephone Company, in Woodhull, Ill., has been selected for a $3.4 million loan to lay 111 miles of fiber optic cable. In southwest Oklahoma, the Medicine Park Telephone Company has been selected for a $4.2 million loan to lay 41 new miles of fiber and copper cable in two subdivisions and finance digital equipment for improved central office switching. The funding also will be used to purchase excavation equipment and five acres of land where a warehouse will be constructed. Funding for each project is contingent upon the recipient meeting the terms of the loan agreement.