Aug. 17, 2010

TDS using federal stimulus funds to expand local broadband

STAFF REPORTS

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CENTRE — TDS Telecom has been approved for local broadband expansion projects totaling over $5.5 million, according to a statement release last week by the Centre office.

TDS will receive $4.1 million from the USDA Rural Utility Service (RUS) and will invest nearly $1.4 million to bring broadband further out to residents around the Centre and Cedar Bluff areas. The project is expected to put 109 people to work in the area constructing the network during the next 24-36 months.

According to an online map that accompanied the press release, the focus of the company's efforts to expand also include Sand Rock, a wide swath south of Leesburg, and a sizeable area of the county north and east of Gaylesville.

The grant to TDS for Peoples Telephone Company in Alabama is part of the Aug. 4 USDA RUS announcement that TDS has been approved for $114.5 million in broadband expansion projects in 18 states.

As part of the American Recovery and Reinvestment Act, TDS submitted 46 applications in the second round of broadband stimulus funding availability in March. TDS received funding approval for 39 of those projects.

In total, TDS will receive $85.9 million in federal grants and provide $28.6 million of its own funds to complete the projects. These awards follow TDS' success from round one where the company received $12.5 million in grants to construct and expand broadband networks in Michigan and Alabama.

“This is great news for our local customers, contractors, and employees alike,” said Dave Wittwer, president and CEO of TDS Telecom. “We know it's been a long wait for many of you in this community. These funds will help us close the gap and deliver broadband to more residents and businesses waiting for high speed connectivity.”

More approvals could be forthcoming as the RUS continues its work to meet the Sept. 30, 2010 statutory deadline requiring the agency to distribute all $2.6 billion in federal broadband stimulus funding under their jurisdiction.

“The announcement demonstrates the trust RUS has in TDS' ability to deliver quality broadband services. We fought hard to have the rules changed after round one to increase the number of markets that could qualify,” said Andrew Petersen, director of external affairs for TDS.

Once contracts are signed, TDS will have 36 months to complete construction.