WASHINGTON-The U.S. Department of Agriculture has approved 20 rural broadband and telecommunications loans totaling $190 million.
“Telecommunications companies like Nex-Tech Inc. of Lenora, Kan., are improving the capability for rural businesses and farmers and ranchers to compete globally through better access to the Internet. One of their customers, Osbourne Industries, shared with Agriculture Secretary Ann Veneman in January 2003 how their local agricultural services manufacturing company is utilizing high-speed connections to better manage and market their products in domestic and international markets. Nex-Tech will receive a $5.4 million loan to further expand broadband access to 1,400 new subscribers,” said USDA.
The majority of the $190 million is money authorized in the 2002 Farm Bill for the Rural Broadband Loan Program. The Rural Broadband Loan Program is administered by the USDA’s Rural Utilities Service.
The rural broadband program had a tough time being included in the fiscal-year 2004 budget. In FY 2003, RUS made $1.4 billion in loans and loan guarantees available to provide broadband service in rural communities with populations of less than 20,000.
While the rural broadband program is technology neutral, some wireless carriers have complained that RUS rules restrict its availability to incumbents because RUS will not provide competing loans in the same service area.
The remaining $40 million in loans were made using existing rural development funds.
The Telecommunications Industry Association heralded the loans.
“Universal broadband access in our country could be jump-started by actions as simple as providing tax credits for broadband infrastructure investments in rural and underserved areas. USDA’s announcement approving 20 rural broadband and telecommunications loans totaling $190 million is a fine example of investment incentives, and we applaud the administration for its support of the program,” said TIA President Matthew Flanigan. “However, there still remains a number of rural Americans who do not have the ability to receive broadband access. TIA urges the administration and Congress to continue their efforts to provide full funding for this program as authorized in the 2002 Farm Bill and to take all appropriate steps to assist the RUS in facilitating the processing of loan funds provided in fiscal years 2002-2004.”
President George W. Bush has said he wants universal broadband deployed by 2007. John Kerry, the presumptive Democratic presidential nominee, has also said broadband deployment is a priority.
