US telco and ISP Windstream (NASDAQ: WIN) has accepted US$174.9m from the Connect America Fund to expand broadband service to 400,000 rural locations in 17 states.
Windstream will receive the Phase II funds annually for seven years, according to a…
US telco and ISP Windstream (NASDAQ: WIN) has accepted US$174.9m from the Connect America Fund to expand broadband service to 400,000 rural locations in 17 states.
Windstream will receive the Phase II funds annually for seven years, according to a company statement.
President and CEO Tony Thomas said the money “supplements Windstream’s substantial network investments, enabling us to continue service in many high-cost areas and to offer new service to many others”.
He added that the company has made “significant strides” in expanding and improving its broadband services in rural areas through its own investments and universal service and stimulus funds.
Administered by the FCC, the Connect America Fund supports rural broadband networks capable of delivering at least 10mbps download and 1mbps upload speeds.
The FCC developed a new cost model for the Phase II fund which involves state-by-state support. Companies can accept or decline funding for its service area in each state. If they decline, funding will be subject to a competitive process in which an eligible provider can bid to serve all or part of the area. In this case, Windstream has declined the statewide offer for New Mexico.
Thomas said the company remains focused on providing affordable broadband in New Mexico but that the statewide offer “would not enable us to meet the program’s obligations”. As such, it plans to take part in an upcoming bidding process to compete for support in the state.
In June, Frontier Communications, another rural-focused operator, became the first to accept Phase II funding when it agreed to some US$283m in support to boost its own broadband rollout.
