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FCC to give company funds to expand internet speeds in Alabama

Windstream Communications Inc., part of publicly traded Windstream Holdings Inc. of Little Rock, will receive about $13.2 million in annual payments from the Federal Communications Commission’s Connect America Fund to expand and support broadband in rural Arkansas.

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Carriers receiving support from the Connect America Fund must expand broadband to 40 percent of funded locations by the end 2017, 60 percent by the end of 2018 and 100 percent by the end of 2020.

“Over the next six years, Phase II of Connect America will provide more than $10 billion to expand broadband-capable networks throughout rural America nationwide, all without increasing the cost of the program to ratepayers”, the FCC said in a news release.

See Thursday’s Arkansas Democrat-Gazette for full details.

Officials say the money comes from a program that provides support to extend service into areas that wouldn’t otherwise have high-speed internet.

“Windstream is committed to providing robust and reliable voice and broadband services to our customers”, said Tony Thomas, Windstream’s President and CEO. “The Connect America Fund is delivering on its promise of ensuring that all Americans have access to the opportunities provided by modern broadband service, no matter where they live”. If a company declines an offer for a state, funding will be subject to a competitive process in which any eligible provider can bid to serve all or part of the area.

Behold. A telecommunications company taking federal funding to invest in rural broadband. Windstream has declined the statewide offer for New Mexico.

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The funding includes about $1.2 million each for Windstream operations in Harrison County and Tama County and about $1.1 million in Lee County. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.

Windstream gets 5M for rural broadband 0