Dec 24 2009
ION HoldCo, LLC, a partnership majority owned by Sovernet Communications (a subsidiary of Atlantic Tele-Network, Inc. (NASDAQ:ATNI)) along with twelve independent rural telephone companies in New York, announced it has received a federal broadband stimulus grant of $39.7 million to augment its existing 2200 mile fiber network with 1,300 miles of additional fiber-optic middle-mile broadband network.
The project, the ION Upstate New York Rural Broadband Initiative, will be completed in partnership with the Development Authority of the North Country (DANC) and will enable high speed Internet access to underserved communities throughout upstate New York, along with parts of Vermont and Pennsylvania. An additional $9.9 million will be invested in the project by ION and DANC.
“This is great news for our great state,” said ION CEO James Becker. “This grant facilitates the extension of our existing strategy of delivering high capacity transport network services to unserved and underserved areas of New York State.”
The grant, announced December 17 by Vice President Joseph Biden, will be awarded by the National Telecommunications and Information Administration (NTIA) under its Broadband Technology Opportunities Program. In addition to the NTIA stimulus funding, ION has been notified by New York State authorities that the project will receive an additional grant of 10% of the total project cost through the NY State Innovation Economy Matching Grant Program.
Becker continued, “With this funding, ION and DANC will improve the economic climate in these communities by providing reliable, high capacity broadband. We know from our own experience that access to these services will spur economic growth, private investment and job creation in these rural communities.”
ION Upstate New York Rural Broadband Initiative will build 10 new segments of fiber-optic, middle-mile broadband infrastructure, serving more than 70 rural communities in upstate New York and parts of Pennsylvania and Vermont.
Upon ION’s formal acceptance of the grant, expected early in 2010, ION will construct an additional 1,300-mile network to serve more than 300 anchor institutions and immediately connect more than 100 of the institutions, including libraries, state and community colleges, state and county agencies, research centers and health clinics. ION will also offer high-capacity Internet access and data transmission services on a wholesale basis to wireline and wireless retail service providers, making broadband more readily available to 250,000 households and 38,000 businesses, and providing much-needed investments and job creation to unserved and underserved areas of the state.
Becker concluded, “ION has already connected 60 rural upstate New York communities with over 2,200 miles of fiber-optic cable. Together with DANC, we have the experience and expertise to bring these projects to fruition in a cost effective and timely manner. This means New York will see a near immediate impact on economic growth, job creation and job retention, as well as creation of infrastructure that will enable long-lived enhancements to the quality of life in this region.”
Source: http://www.i-o-n.com/