04:21 PM
Core System Testing: How to Achieve Success
Oct 06, 2016
Property and Casualty Insurers have been investing in modernizing their core systems to provide fl ...Read More>>

U.S. Cellular Seeks Stimulus Grants

The wireless operator has applied for $23.5 million in federal stimulus dollars to expand 3G mobile broadband in rural areas.

U.S. Cellular applied for about $23.5 million in grants from the federal broadband stimulus package to provide wireless broadband to rural areas of California, Kansas, Missouri, and Nebraska.

The company said the grants will enable it to build out 3G networks that will create jobs, as well as help bridge the digital divide. U.S. Cellular joins the likes of Leap Wireless and Level 3 Communications as smaller service providers looking for federal dollars for mobile broadband networks.

"If provided with funding, we stand ready with shovels in-hand and are prepared to complete these mobile broadband projects within one year," said John Rooney, president and CEO of U.S. Cellular, in a statement. "It is an aggressive plan that will provide jobs, spur economic growth, and enhance public safety for rural, underserved, and vulnerable Americans."

As part of the American Recovery and Reinvestment Act of 2009, the federal government will be doling out roughly $7.2 billion in stimulus dollars earmarked for broadband access. The government has been inundated with requests for loans and grants totaling more than $28 billion, and the first round of grants will be awarded later this month. The first round will total about $4.7 billion, and the rest of the funds will be allocated by September 2010.

The major service providers like AT&T, Verizon, and Comcast are not expected to go after these stimulus dollars because of certain requirements attached to the funds. For instance, the first round of grants is aimed at bringing broadband to underserved, rural areas, and these are often not very profitable for carriers. For instance, Verizon has been shedding some of its rural customers in Hawaii and northern New England.

InformationWeek has published an in-depth report on leading-edge government IT -- and how the technology involved may end up inside your business. Download the report here (registration required).

Comment  | 
Print  | 
More Insights
Threaded  |  Newest First  |  Oldest First
InformationWeek Elite 100
InformationWeek Elite 100
Our data shows these innovators using digital technology in two key areas: providing better products and cutting costs. Almost half of them expect to introduce a new IT-led product this year, and 46% are using technology to make business processes more efficient.
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends to Watch in Financial Services
IT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Twitter Feed
InformationWeek Radio
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.