Northeast Gets $42-million-plus for Broadband Expansion

$363 in federal stimulus funds to expand broadband access

Compiled by staff

Published: Sep 2, 2010

U.S. Ag Secretary Tom Vilsack recently announced that $363 million in federal economic stimulus funds will go to 218 projects in 16 states. The goal, he said, is to expand broadband access in rural areas.

Businesses in the Northeast will get about $42.85 million. That includes $856,000 to Windstream Corporation of New York State, $36 million to Keystone Wireless in Pennsylvania and $5.6 million to Vermont's Waitsfield and Fayston Telephone Company.

"When we complete our work, the [Recovery Act] broadband programs or USDA will expand broadband access to 1.2 million households" and create as many as 5,000 new jobs, added Vilsack.

The biggest chunks of funding went to California and Alabama. Numerous state agencies and inner city projects were also funded, so the focus wasn't solely on rural areas. With major nationwide projects including the Hughes Network and Motorola, the funds have a broader objective also beyond rural America.

The projects, explained Vilsack, help bring down the cost of private investment, attract Internet service providers to new areas, improve digital literacy among students and workers, and help create new opportunities in employment, education, and entrepreneurship by wiring homes and businesses.

Rural areas are at a competitive disadvantage because access to high-speed Internet service is increasingly essential for businesses, schools and hospitals. Such service typically is standard in urban areas, but remains rare in sparsely populated areas.

"This is part of a new framework for rural revitalization," added Vilsack. "When you talk about expanding broadband as we are doing, this is all part of revitalizing our rural economy and getting it to the point where it can attract and retain young people."

"Broadband expansion is important for farmers and ranchers. It provides them the real-time information and the capacity to market their products," he added. "The same is true for small businesses in those towns."