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  Release No. 0485.11
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  Agriculture Secretary Vilsack Announces Funding to Expand and Improve Broadband Services in Rural Areas
 

ST. LOUIS, MO, Nov. 14, 2011—Agriculture Secretary Tom Vilsack today announced funding for telephone utilities to build, expand and improve broadband in their rural service territories across 15 states. The announcement was made on the Secretary's behalf by USDA Rural Utilities Service Deputy Administrator Jessica Zufolo during an address at the annual meeting of the National Association of Regulatory Utility Commissioners in St. Louis, MO.

"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," Vilsack said. "In addition to providing much needed services to rural businesses and residents, these investments will increase jobs, not just in the near term, but through expanded opportunities in rural areas."

For example, in Minnesota, Rural Development Broadband Loan Program funds will be used to extend Paul Bunyan Rural Telephone Cooperative's existing Fiber-To-The-Home (FTTH) network to serve rural communities in North Central Minnesota. This project will offer advanced telecommunications services to over 45,710 households and businesses. Paul Bunyan has been operating since 1952 and has been a telecommunications borrower with the Rural Utilities Service since 1953.

In North Dakota, Rural Development funds will be used to expand Polar Communications Mutual Aid Corporation's Fiber-to-the-Premises (FTTP) broadband system throughout eighteen exchanges. The upgraded system will help meet current and future requirements for delivery of voice, video and high speed data to subscribers. Upon completion of this RUS-funded project, all of Polar's subscribers will be served with broadband via various technologies.

In Indiana, Perry-Spencer Rural Telephone Cooperative Inc., (PSC) provides telecommunications services to 5,711 subscribers over approximately 1,148 square miles. This loan will enable PSC to start the process of designing and building FTTP broadband services across its service area. This investment in broadband technology creates the potential for increased business growth, while providing improved telecommunications, entertainment services, educational services, healthcare, and public safety to rural communities in Indiana.

The following list of awardees will receive $410.7 million in funding, contingent upon the recipient meeting the terms of the agreement with USDA.

Colorado

  • Eastern Slope Rural Telephone Association, Inc.--$18,725,000 will be used to upgrade the existing fiber-to-the-node (FTTN) network, capable of providing modern broadband services to subscribers in 10 exchanges.

Idaho and Utah

  • Albion Telephone Company--$17,075,000 in loan funds will be used to install 453 miles of buried fiber optic cables throughout the proposed FTTP system, providing nearly 60 percent of subscribers with FTTP.

Illinois

  • McNabb Telephone Company--$3,700,000 in loan funds will be used to make system improvements, including constructing new FTTP facilities. A total of 115 miles of buried fiber optic cable will be deployed to improve service to subscribers.
  • Shawnee Telephone Company--$30,286,000 in loan funds will be used to construct FTTP facilities, allowing Shawnee to provide voice and data services at speeds of up to 100 Mbps to both residences and businesses.
  • McDonough Telephone Cooperative, Inc.--$15,728,000 in funds will be used to upgrade the rural areas with FTTH technology. Approximately 766 miles of buried fiber cable will be deployed to provide over half of the subscribers with access to improved broadband service. McDonough has been serving its rural subscribers for over 60 years.

Indiana

  • Perry-Spencer Rural Telephone Cooperative, Inc.--$29,139,000 in loan funds have been awarded to Perry-Spencer Rural Telephone Cooperative Inc., (PSC) which provides telecommunications services to nearly 6,000 subscribers over approximately 1,150 square miles in southern Indiana. This loan will enable PSC to start the process of designing and building FTTP to enhance broadband services across the service area.

Iowa

  • Mediapolis Telephone Company--$13,401,000 in loan funds will be used to make system upgrades to the transport system and the network architecture from the existing copper Digital Subscriber Lines (DSL) to FTTP broadband systems.
  • Griswold Cooperative Telephone Company--$12,747,000 in loan funds will be used to complete a system-wide FTTP network, enhancing broadband service to all subscribers.
  • La Porte City Telephone Company--$9,867,000 in loan funds will be used to make system improvements, including installation of a FTTP broadband network that will serve all of the borrower's subscribers. A total of 297 miles of buried fiber optic cable will be deployed, enabling downstream data rates of up to 20 Mbps.

Kansas

  • The S & T Telephone Cooperative Association--$29,814,000 will be used to implement a full FTTH design to allow the migration to 10-20 Mbps broadband speeds to all subscribers and to provide IPTV in the near future.

Minnesota

  • Paul Bunyan Rural Telephone Cooperative--$19,749,000 in Rural Development Broadband Loan Program funds will be used to extend Paul Bunyan's existing FTTH network to serve the exchanges of Park Rapids Rural and Trout Lake in North Central Minnesota. With this extension of their network, Paul Bunyan will be able to provide advanced telecommunications services to over 45,710 establishments (households and businesses) across all service areas. Paul Bunyan has been operating since 1952 and has been a telecommunications borrower with the Rural Utilities Service since 1953.

New Mexico

  • Roosevelt County Telephone Cooperative, Inc.--$12,358,000 will be used to deploy new equipment and install FTTP equipment to enhance the broadband network.

North Dakota

  • BEK Communications Cooperative--$26,746,000 in loan funds will be used to expand a FTTH broadband system. Upon completion of this RUS-funded project, 100 percent of BEK's subscribers will be served by fiber.
  • SRT Communications, Inc.--$24,832,000 in loan funds will be used to install 2,143 miles of buried fiber optic cable and related equipment throughout the proposed FTTP system. The FTTP system will be constructed in areas outside of towns in twelve of the borrower's twenty-six exchanges. The service areas in the towns will continue to be offered DSL at speeds of at least 55 Mbps with its relatively new copper plant.
  • Polar Communications Mutual Aid Corporation--$32,939,000 in loan funds will be used to expand the Borrower's FTTP broadband system throughout the borrower's eighteen exchanges. The upgraded system will help meet current and future requirements for delivery of voice, video and high speed data to subscribers. Upon completion of this RUS-funded project, 100 percent of Polar's subscribers will be served with broadband via various technologies.

Oklahoma

  • Terral Telephone Company--$4,855,000 in loan funds will be used to convert the existing copper network to a FTTH system, and connect new subscribers. The proposed FTTH deployment includes construction of over 62 miles of fiber plant in and around Terral, and the replacement of the existing softswitch and power plant. This FTTH deployment will create nine jobs and save seven jobs.

South Carolina

  • Sandhill Telephone Cooperative, Inc.--$5,930,000 will be used to provide for system improvements, including purchase of a new switch.

Tennessee

  • North Central Telephone Cooperative Corporation--$27,069,000 will be used to upgrade portions of North Central's outside plant and network infrastructure by deploying a FTTP network.

Washington

  • Inland Telephone Company--$24,823,000 in loan funds will be used to expand Inland's FTTP broadband system and connect new subscribers.
  • The Toledo Telephone Co., Inc.--$18,091,000 in loan funds will be used to install 292 miles of buried fiber optic cables and related equipment throughout the proposed FTTP system, offering enhanced service to all Toledo subscribers.

Wisconsin

  • Union Telephone Company--$13,308,000 in loan funds will enable Union to deploy approximately 336 miles of fiber, which will provide approximately 60 percent of Union's subscribers with access to improved broadband services.
  • Marquette-Adams Telephone Cooperative, Inc.--$19,781,000 Marquette-Adams will use loan funds to complete a system-wide FTTP network, including over 370 miles of new or modified buried fiber, providing enhanced broadband service to all subscribers.

Since taking office, President Obama's Administration has taken historic steps to improve the lives of rural Americans, put people back to work and build thriving economies in rural communities. From proposing the American Jobs Act to establishing the first-ever White House Rural Council – chaired by Agriculture Secretary Tom Vilsack – the President wants the federal government to be the best possible partner for rural businesses and entrepreneurs creating job opportunities and for people who want to live, work, and raise their families in rural communities.

USDA, through its Rural Development mission area, administers and manages housing, business and community infrastructure and facility programs through a national network of state and local offices. Rural Development has an existing portfolio of more than $155 billion in loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America. More information about USDA Rural Development can be found at www.rurdev.usda.gov.

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