U.S. Cellular Seeking Government Funding to Expand Rural Coverage

­U.S. Cellular says that it has applied for US government stimulus funding to expand its network in rural areas. The company is seeking $11.2 million for Missouri; $2.95 million for California and $3.7 million for Kansas.

The Broadband Initiatives Program (BIP), which was established in response to the American Recovery and Reinvestment Act of 2009 (ARRA) and is administered by the U.S. Department of Agriculture (USDA).

The ARRA - sometimes called the "Recovery Act" or Federal Stimulus package - has set aside $7.2 billion to promote access to broadband Internet services in rural and underserved communities, areas where U.S. Cellular has historically focused its development of wireless networks.

"It will not be enough to fund broadband deployment through wires and cables alone," said John E. Rooney, president and CEO of U.S. Cellular. "Americans are active, mobile multi-taskers who want and need on-the-go access to information through wireless broadband networks. An investment in mobile broadband will help rural communities compete for jobs in an information economy, maintain tax bases for their schools and provide modern healthcare for their residents."

The company is planning to spend around US$22.4 million in Missouri - offering wireless broadband at an average cost of $30 per household. For Kansas, the figure is US$7.4 million/$23 per household and for Northern California it works out at $5.9 million/$37 per household.

Slightly less than half of this is to be underwritten by a BIP grant, with the balance funded by U.S. Cellular using other sources.

Even without BIP support, U.S. Cellular forecasts that 3G mobile broadband coverage will be enabled on 60 percent of its cell sites by the end of the summer, which will reach approximately 75 percent of its post-pay customers.

Posted to the site on 11th September 2009