Monday, August 17, 2009

Leap Wireless Applies for Stimulus Funds

Though major telcos and cable companies, as well as many independent rural telcos seem to be passing on applying for broadband stimulus funds, it appears wireless firms are active.

Leap Wireless says it has applied for a grant to supply 23,000 low-income families in Baltimore, Houston, Memphis, San Diego and Washington, D.C. broadband access and digital literacy training.

Yonder Media, a Reno-based wireless broadband provider to rural communities, also has applied for funds to deploy 150 3G rural wireless broadband networks, serving 400 communities.

Qwest, Comcast, AT&T and Verizon did not apply, and that was not unexpected. The Rural Utilities Service rules generally bar firms such as Qwest from applying for support for their rural operations if they also serve at least one metro market in a state. And none of the major providers were too happy about strings attached to the receipt of funds, which affect the business models and practices the companies can use.

Level 3 Communications likely will apply for funds to support middle-mile facilities that can be used by local access providers.

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