US rural telco Frontier Communications is to receive some US$283m in annual support from the FCC’s Connect America Fund (CAF) to boost its broadband rollout.
Specifically, the telco will use the CAF Phase II funds towards extending broadband to more…
US rural telco Frontier Communications is to receive some US$283m in annual support from the FCC’s Connect America Fund (CAF) to boost its broadband rollout.
Specifically, the telco will use the CAF Phase II funds towards extending broadband to more than 650,000 rural locations in its 28-state service area.
Frontier president and CEO Dan McCarthy described CAF Phase II as a critical next step in providing rural broadband services.
“We have reviewed the…CAF Phase II rules and offers and look forward to partnering with the FCC to achieve our common goal of increased broadband access…”
The company accepted the funding ahead of deadline in order to start building the necessary infrastructure as soon as possible, he added.
Jon Banks, senior vice president of trade body USTelecom, said Frontier’s decision to accept the funding marks a step toward resolving the challenge of deploying broadband infrastructure in difficult-to-serve areas.
“The remaining price cap companies are continuing to evaluate CAF funding and obligations. Modernising universal service programs in a focused and fiscally responsible way shows how the FCC can help deliver the benefits of the internet…”
The FCC set up the CAF in 2011.
Frontier took part in the first funding round, investing US$133m of CAF Phase I funds and its own capital to deploy and upgrade broadband services.
According to Frontier, it has extended broadband to more than 1.1 million new households over the past four years.
Earlier this month, Frontier closed its US$750m common stock and US$1.75bn mandatory convertible preferred stock offerings to help fund its US$10.54bn purchase of Verizon Communications’ wireline operations in California, Florida and Texas. The purchase is expected to close in the first half of 2016.
