Wireless Broadband Service Coming to Rural America

USDA Loan Will Support Installation in 17 States

It is about to become easier for people living in rural communities to receive broadband internet access by virtue of a low-interest loan from the Department of Agriculture. Residents of 518 communities spread over seventeen states will have access to WiMax broadband access once the system is installed by Open Range Communications of Centennial, CO. The installation will bring broadband access to roughly 6 million people who currently do not have access to other broadband services.

"Broadband is as important today as providing rural telephone service was 75 years ago, and we're proud of our role in fostering public-private partnerships to bring broadband services to rural America," said Rural Development Under Secretary Thomas C. Dorr in a press release.

The $267 million loan is part of the USDA's Rural Development Utility Program (RDUP). The loan to Open Range represents one of the largest public-private partnerships for universal broadband internet service ever contemplated by the federal government. The Open Range project is the program's first investment to support Wi-Max technology. The USDA has previously helped fund the installation of coax and fiber-optic systems into rural areas.

The one system will not serve communities that already have access to broadband service via existing cable or DSL providers. Open Range's plan is to make broadband access available only in communities where these services do not exist, and to be the first provider of these services within the targeted communities. Open Range will also be offering satellite services to provide rural residents with portable connectivity virtually nationwide.

The plan calls for equipment installation to serve the 447,000 affected households over the next five years.

Open Range initially announced its plan to expand its service area in October 2007. Open Range has also raised $100 million in private capital to fund the project. Terms of the USDA loan require repayment of the loan over a 12 year period.