USDA loans provider $257 millionWhen a company receives money, you've got to consider questions of "how much" and "who from" to figure out what sort of attention it's owed. In the case of broadband service provider Open Range Communications, the answers are "a lot" and "a branch of the U.S. government."
Open Range Communications To Provide Broadband To Rural Communities
The U.S. Department of Agriculture will loan Open Range Communications $257 million so that it can deliver broadband in 518 rural communities. In case you couldn't guess, a press release states, "The commitment by USDA and Open Range represents one of the largest public-private investments for broadband service by the federal government."
Satellite services should also come into play, and as far as money goes, another $100 million from the private sector is going along for the ride. Alabama, Arkansas, California, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Nebraska, Nevada, New Jersey, New York, Ohio, Pennsylvania, South Carolina, and Wisconsin are due to benefit in terms of both jobs and connectivity.
Otherwise, well . . . Om Malik sums up the situation. "Ironically, for a company that is getting such a huge amount of money as a loan, there is little or no information. Their web site is a place holder with a link to an email address for their PR person. Given that they secured hundreds of millions of dollars from a government department, one should expect more transparency. Even the details on how the network and service will be rolled out remain sketchy."
At the least, though, this project will hopefully act as an economic stimulus.
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Comments
Rural broadband still only for a few
I have a feeling we'd all have DSl by now, if the gummint hadn't broken up Bell Tel. The federal solution is usually worse than the original problem. Divestiture may have made things better for high population centers, but not out here in Oregon. Competition hasn't improved telephone service a bit. In my area, The phone and cable representatives literally laugh when I ask about the future of DSL or cable internet opportunites for me. Satellite solutions are way too expensive for the little increase in benefits. In my electronic black hole, my neighbors and I can't get radio, TV or cell coverage. The most frequent reason given is "too few subscribers per mile". So, we click and go get a coffee on 26kbps dialup connections.
you REALLY did NOT dig deep enough on this story.
USDA's Lending Policy Needs Work
The grants are a Joke
The U.S. Department of Agriculture grants do not go to the areas that need it. Example:
If a nerby city under the same excange as you has DSL but DSL doesn't server your area. You do not qualify.
If people near you make to much money your area doesn't qualify.
In over 100 rual areas that I know tried to get it only 3 qualified under the rules.
Myself I have no broadband in this rual area but do not qualify for grants due to DSL in the city 15 miles away..
The entire program is a Joke. What we really need is for the FCC to require the Phone companies to upgrade the existing phone lines so they can serve everyone with DSL.
I have been asking Verizon
I have been asking Verizon for several years when I will be able to get DSL. I get the standard reply "we are working to update the rural community. Please leave your email address and we will contact you when ..."
I live less than three miles from the main office in this small town and if I lived less than 2 miles closer I could get cable interent. I did finally get satelite broadband internet a few years ago but it would be nice to be a little faster.
I have asked a verizon repairman and he told me that to upgrade the station that serves my area would cost $25,000. By the way I do have fiber optic cable already installed to my house but who knows how long I'll have to wait to get real speed. $$$ talks!
I, too, have been asking Verizon
I have been asking Verizon and the national cable service about broadband in my rural area. Verizon in one of my last conversations with them quoted me that "broadband will become available in 15 years in your area". This is completely outrageous, by then it should be free. The upgrade to the local central office (CO) of Verizon would only require an upgrade of $25,000 to $30,000 to provide my area with broadband service.
The national cable service that perports to be supporting my area told me that if I would pay the $25,000 fee they would be happy to bring broadband to me.
I am now working with my local elected officials to convince both Verizon and the cable provider that we need these services for our businesses and those that work from their homes. After attending several meeting with the elected officials, I have found out that every resident and business in my area wants these services.
Knowing this information now, Verizon would have the upgrade paid for within a year (if everyone in the area doesn't sign up for service). What do we have to do to get the services we need?
rural highspeed
I just footed the bill to run cable to my home because it was the only way (besides satellite) that I could get high speed. Wonder if I can get a rebate?
:D
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