The FCC has allocated a total of $255 million in grants from its Connect America Fund Phase I (CAF-I), enabling five telcos to deliver broadband access to over 400,000 rural homes and businesses in 41 states.
AT&T (NYSE: T), CenturyLink (NYSE: CTL), FairPoint Communications (Nasdaq: FRP), Frontier Communications (Nasdaq: FTR), and Windstream (Nasdaq: WIN) have agreed to take CAF-I funding to reach customers unserved by broadband service today.
Verizon (NYSE: VZ), the second largest telco, decided not to participate in the program.
All of these service providers decided to take more money in the second part of the CAF-I program after the FCC changed the rules about how the funds could be spent.
CenturyLink, for example, was initially eligible to get $90 million in CAF-funding, but it only accepted $35 million last year because it said that the FCC’s rules made it “uneconomic” to bring broadband to other areas.
AT&T, Frontier, other telcos’ rural broadband boosted by $255M in CAF-I grants – FierceTelecom.