$267M USDA Loan to Expand Broadband across 17 States

On March 25, U.S. Department of Agriculture (USDA) Rural Development Under Secretary Thomas Dorr announced that Open Range Communications, headquartered in Denver, Colo., will receive a $267 million loan from USDA Rural Development to provide broadband service to 518 rural communities in 17 states. The commitment represents one of the largest public-private investments for broadband service by the federal government, the USDA reports. It is also the first USDA Rural Development investment to support Wi-Max technology.
 
The Open Range project is intended to cover more than six million people and serve more than 447,000 households within five years. In addition, the services are expected to help create jobs and business opportunities in the project's 17 states, including: Alabama, Arkansas, California, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Nebraska, Nevada, New Jersey, New York, Ohio, Pennsylvania, South Carolina and Wisconsin.
 
The partnership will help address the need to deploy wireless, portable broadband connectivity to improve service in considerable portions of rural America. The set of services will provide Wi-Max technology that transmits wireless data in areas not serviced by cable or DSL technologies. Open Range plans to offer affordable, wireless high-speed broadband service to underserved and unserved areas.
 
In addition to broadband, Open Range will offer satellite services to provide rural residents with portable connectivity virtually nationwide. Improved service with portability features will improve communications and responses for emergency first responders, such as law enforcement and rescue providers, and healthcare providers.
 
Open Range is leveraging the $267 million government loan with an investment of more than $100 million from the private sector. The loan is contingent upon Open Range meeting the conditions of the loan agreement.
 
The Rural Development Broadband Loan and Loan Guarantee Program is making the loan. Since its inception, the program has awarded $1.6 billion in loans for projects to provide rural broadband services. The Rural Development Broadband program has financed a variety of technologies, including wireless, fiber, hybrid fiber/coax, DSL and broadband over power lines.
 
Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA's website at http://www.rurdev.usda.gov.