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USDA Rural Development Helps Expand Broadband Infrastructure in Rural Iowa and Across the Country

Name
Darin Leach
City
Buckhannon
Release Date

Assistant to the Secretary for Rural Development Anne Hazlett today announced that USDA is investing more than $200 million in infrastructure projects to bring broadband to hundreds of unserved and underserved rural communities across the country.

“Broadband infrastructure is vital to our economy and quality of life in rural America.  Yet, today nearly 40 percent of rural residents and businesses lack access to the same quality service available in urban centers,” Hazlett said.  “Under Secretary Perdue’s leadership, USDA is working hard to bridge this gap.  From access to health care to workforce training and connection to global markets, broadband is truly a lifeline to prosperity in rural communities.”

While in West Virginia, Hazlett announced that USDA is awarding eight additional grants in Minnesota, Oklahoma, Tennessee, Virginia and Washington, as well as 10 loans to expand broadband in rural areas. The loans will provide new or improved broadband access for more than 71,000 residents and businesses in 74 counties in rural parts of Illinois, Iowa, Kansas, South Dakota, Tennessee, Utah, Virginia and Wisconsin.

One of the recipients announced today is Western Iowa Telcom, commonly known as Wiatel, which received a $24.8 million USDA loan for an extensive fiber-to-the-premise (FTTP) project that will greatly expand broadband access to communities, residents and businesses in northwest Iowa.

Wiatel serves residents and businesses in and around 12 northwest Iowa rural communities, covering a nearly 750 square-mile territory, but with a customer density of just 5.5 customers per square mile.

The three-year project is being broken into three phases and will include the installation of fiber into homes and businesses in and/or near the communities of Bronson, Castana, Climbing Hill, Holly Springs, Hornick, Lawton, Moville, Oto, Rodney, Smithland and Turin. Populations in these communities range from less than 100 to around 1,600. The project should be completed in 2019.

The new fiber will allow Wiatel to provide gigabit internet, internet protocol television (iPTV) and voice services to nearly all of its nearly 4,000 customers. 

These awards are being financed through USDA’s Telecommunications Program, which has provided financial assistance to more than 500 telecommunications providers nationwide. USDA is announcing $207 million in loans and grants today.

Previous awardees, such as the Moultrie Independent Telephone Company in Illinois, have used USDA funding to expand broadband availability and make dramatic service improvements. Moultrie is using a USDA loan to increase network speed by almost tenfold in Lovington, Ill. Faster speeds can mean a significant increase in profits for area businesses that need real-time access to futures and options exchanges such as the Chicago Board of Trade.

USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; homeownership; community services such as schools, public safety and health care; and high-speed internet access in rural areas. For more information, visit www.rd.usda.gov.