TMCnews Featured Article

KeyOn Communications Holdings, Inc. reportedly announced that it has submitted multiple applications for funding through Broadband Initiatives Program as part of the American Recovery and Reinvestment Act of 2009 ARRA.

“The management, employees, and key consultants of KeyOn have spent the past 3 months focusing on and refining our plan to submit these applications under the BIP for rural broadband deployment,” said Jonathan Snyder, president and chief executive officer of KeyOn Communications. “As KeyOn is the largest and most experienced provider of wireless broadband networks specifically serving rural markets, I believe we are strongly positioned to extend the reach of broadband to the neediest areas in the country – namely the rural markets.”

Officials at the company claim that if the funding applications get cleared then its existing wireless networks, which currently cover approximately 2.5 million people, would be expanded to cover as many as 16 states, and provide wireless broadband access to as many as 6.5 million people.

The ARRA - sometimes called the Federal Stimulus package - has set aside $7.2 billion for the development of broadband and Wi-B in USA and $350 million from this fund reservoir is earmarked for Broadband Data Improvement Act of 2008. $2.5 Billion of the $7.2 billion is set aside for low-interest loans, loan guarantees and grants at United States Department of Agriculture's Rural Development and Utilities services Program BIP discretion and the remaining $4.7 Billion is allotted for the Department of Commerce’s National Telecommunications and Information Administration’s Broadband Technology Opportunities Program to decide on grants to deserving companies and technologies.

In addition, there is another $1.3 billion set aside in the form of loans and grants to enhance broadband and telecommunications services in rural areas within the federal budget for the fiscal year 2010. Most of the above mentioned funds have been designated to help expand broadband access to unserved and underserved communities across the United States.

“The goals of the Broadband Initiatives Program are aimed at enhancing rural America’s productivity and economic competitiveness by increasing broadband adoption while creating sustainable jobs,” said Snyder. “These are two goals that our plan addresses head-on and incorporates other tenets of the plan by promoting the use of broadband to a variety of public service organizations, such as schools and colleges, libraries, medical and health care centers and community support organizations. Our network design takes advantage of the latest fourth generation 4G WiMAX (News - Alert) technology and the newly regulated 3.65GHz spectrum, for which we hold a nationwide license.”

KeyOn said that the RUS will not fund more than one project to serve any given geographic area, and its bylaws deem that grants, loans or loan guarantees, can only be used for projects wherein at least 75 percent of a funded area is in a rural area that lacks sufficient high speed broadband service to facilitate economic development.

Company officials said the five core purposes defined in Section 6001 of ARRA to establish a national broadband service development and expansion program were: To provide access to broadband service to consumers residing in un-served areas of the country; To provide improved access to broadband service to consumers residing in underserved areas of the country; To provide broadband access, education, awareness, training, equipment, and support to community anchor institutions such as schools, libraries, medical facilities, or organizations and agencies serving vulnerable populations such as low-income, unemployed, aged, or job-creating strategic facilities located in state or federally designated economic development areas; To improve access to, and use of, broadband service by public safety agencies; and, To stimulate the demand for broadband, economic growth, and job creation.

RUS will favor funding projects that can, among other things, commence construction promptly and demonstrate technical and financial feasibility, organizational capacity, and compliance with other Administration priorities.

“With a network that currently spans 382 wireless broadband towers which has served mainly rural populations over the last seven years, we possess the experience and commitment to immediately commence construction of these next-generation wireless networks upon receipt of stimulus funds,” said Snyder. “We applaud the Obama Administration’s effort to expand broadband access into rural areas, the FCC’s (News - Alert) foresight in making available the 3.65GHz spectrum which is ideal for the rural broadband initiative, and RUS’s efficient management of this process.”

Recently Connected Nation, the Commerce Department and RUS had presented their progress, status and recommendations reports about facilitating every American citizen with broadband infrastructure as per the directives mentioned in the ARRA to the House Committee on Energy and Commerce, Subcommittee on Communications, Technology, and the Internet.

The overall agreement was that the best and most progressive results happened when the government and private companies collaborated to expand and set up broadband related infrastructure. There was also a heavy emphasis that collaborative efforts would enable companies and countries to come out of financial tailspin that the entire world is in, and it was listed as one of the seven critical Consumer Electronic Show 2009 guidelines.

The Rural Mobile Broadband Alliance of the United States of America had launched the RuMBA (News - Alert) American Broadband Bill of Rights that throws the voice of the people behind the ARRA initiative, which primarily desires that all Americans, especially unserved, rural and underprivileged citizens must have the maximum possible continuous access to wired broadband and Wi-B as soon as possible since broadband is gaining in popularity and it is expected to expose potential users to the same wealth of information, ideation and opportunity that existing users experience.