Friday, July 17, 2009

Wireless Broadband Providers Remain Unsettled on Stimulus Funds

With less than 4 weeks remaining to take action on available grants and loans--all part of a federal stimulus package aimed at beefing up the nation's wired and wireless networks--many providers have yet to take action. Why? Well, these aren't exactly "no strings attached" deals.

Vice President Biden recently announced the availability of $4 billion in American Recovery and Reinvestment Act loans and grants, which are specifically aimed at bringing rural broadband access to un-served and underserved communities. Nonetheless, providers like CenturyTel, Inc. haven't lifted a finger to tough the funds, which could go a long way in funding their LTE network plans for the coming years. "We just don't know yet," a company spokesman told Unstrung Wednesday. "We're still evaluating the notice that came out at the end of June."

Yet another company, Open Range Communications, is balking at the latest offer after having received a reported $267 Million from the Department of Agriculture's Rural Development Utilities Program (RDUP) in March (a previous edition of a stimulus package aimed at rural broadband access).

With this latest stimulus offer announced by Biden, the deadline for applying for the funds is notably tighter. Companies are faced with deciding whether they can/will accept the terms of the funding while they only learned of said terms as late as July 1st. And, it seems, many may decide the easy money may not be worth the strings it has attached.

Labels: Broadband, Network Providers, Rural Broadband, Rural Broadband Access, Stimulus