U.S. sets sights on stimulating broadband access for rural areas

St. Louis Post-Dispatch | By | February 3, 2010

The federal government on Tuesday brought the broadband segment of its massive $787 billion economic stimulus package to St. Louis.

The two agencies charged with distributing $7.2 billion to improve high-speed Internet for rural and low-income Americans hosted a daylong informational workshop in Eureka.

The fifth of 10 such events scheduled around the nation drew participants from across the Midwest.

It was designed to help hopefuls navigate the complicated and highly competitive process that's entering the second of two funding rounds.

The first round, which closed late last year, was supposed to award nearly $4 billion nationwide.

So far, only $364 million has been earmarked — a fact that's not terribly surprising, considering the agencies received some 2,200 applications, requesting more than $28 billion in funding.

"We fully expect in round two to have an even larger pool of applicants," said Jessica Zufolo, deputy administrator for the Rural Utilities Service, part of the U.S. Department of Agriculture.

And while simple math says there are going to be a lot of disappointed applicants, Missouri already has scored one victory.

Among the 22 grant winners already announced is the Ralls County Electric Cooperative — based in New London, Mo., just south of Hannibal — which won more than $18 million in grants and loan guarantees to build a so-called last-mile fiber network to supply high-speed access to some 5,000 homes and nearly 60 anchor institutions — hospitals, schools, libraries and public safety operations.

The electric cooperative's partner in the venture is Chesterfield-based Pulse Broadband, which will provide the network engineering.

Zufolo said the partnership is a good example of the types of projects that may find success in the quest for funding.

Working in its favor was the fact that much of the electrical infrastructure — the cooperative already has 1,400 miles of electrical lines in place — can be used to spread fiber optic lines to homes.

The project represents a major upgrade for area residents and businesses.

"We're going to leapfrog from basic dial-up to some of the best speeds you can find in the nation," said Daniel Stride, the cooperative's chief executive. "It's on par with bringing electricity to rural America in the 1930s."

The second round of funding is expected to have a stronger emphasis on the middle-mile projects — those that bring high-speed access to a town, region, or general area of a city — as opposed to last-mile projects that strive to reach specific homes.

"The thinking is that funding these projects will have longer-term ripple effects," said Angela Simpson, an adviser with the National Telecommunications and Information Administration, part of the U.S. Department of Commerce.

http://www.stltoday.com/stltoday/business/stories.nsf/0/92AD75B41DF4DECC...

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