USDA Broadband Funding for Rural Projects; Coops On Top

This past July the USDA announced over $85 million in funding for rural broadband projects across seven states. The projects, many awarded to rural cooperatives, aim to bridge the digital divide and expand economic opportunities. For those interested in federal funding opportunities, NTIA has just released this guide [pdf].

Rural areas are often passed over by big telcos because they are considered less profitable. Farming, however, is a high-tech industry, and Agriculture Secretary Tom Vilsack believes that Internet access is as necessary as electricity in rural areas:

"Broadband is fundamental to expanding economic opportunity and job creation in rural areas, and it is as vital to rural America's future today as electricity was when USDA began bringing power to rural America 80 years ago. ...  Improved connectivity means these communities can offer robust business services, expand access to health care and improve the quality of education in their schools, creating a sustainable and dynamic future those who live and work in rural America."

The USDA has awarded more than  $77 million in Community Connect Grants for rural broadband projects (since 2009). This July, the USDA loaned $74.8 million and awarded another $11 million in Community Connect Grants. Here is the current round-up of the USDA’s most recent loans and grants:

Alaska

Arctic Slope Telephone Association Cooperative Inc. will connect Point Hope subscribers and prepare for an undersea fiber line with a $1.4 million grant.

Minnesota

Garden Valley Telephone, one of the largest coops in Minnesota, will continue to expand its FTTH service area with a $12.63 million loan. On average, the coop serves two households per square mile.

Consolidated Telephone, another coop, will perform upgrades and add a new fiber ring to allow for greater bandwidth with a $12.27 million loan.

Northeast Service Cooperative will receive two $3 million grants and, through a partnership with the Fond du Lac Band of Superior Chippewa, provide broadband service on the the Fond du Lac Reservation.

Montana

Triangle Telephone Cooperative Association will upgrade their system with fiber through a $29.95 million loan.

Oklahoma

@Link Services will receive $1.5 million in grants to provide broadband services in Seminole County.

South Carolina

FTC Communications will improves its wireless to 4G/LTE with a $12.38 million loan.

Virginia

Scott County Telephone Cooperative, with a $2.1 million grant, will provide one gigabit to 540 locations in Dickenson County to increase economic development.

Wisconsin

LaValle Telephone Cooperative will use a $7.61 million loan to deploy fiber.

It is no longer surprising to find faster, more affordable, more reliable Internet networks in rural areas served by coopertives. Minnesota's Farmers Mutual Telephone Cooperative, Co-Mo Cooperative central Missouri, or Farmer's Telecommunications Cooperative in Alabama are only a few we have covered. As large corporate providers fail to provide modern services, rural cooperatives have stepped up to offer services to their members and improve economic development prospects in the communities they serve.