Iowa to get $90 million for broadband expansion

The Iowa Communications Network and six other Iowa groups will share $90.1 million to for broadband projects that create more than 450 jobs upfront and “help drive economic development,” the White House will announce today.

The projects are among 66 Recovery Act broadband projects that, according to the recipients, will create approximately 5,000 jobs up front, but will also help spur economic development in some of the nation's hardest-hit communities, helping create jobs for years to come.

President Barack Obama is announcing the $795 million in grants through the Departments of Commerce and Agriculture that will benefit more than 685,000 businesses, 900 healthcare facilities and 2,400 schools. The grants and loans have been matched by more than $200 million in outside investment, for a total public-private investment of more than $1 billion in bringing broadband service to these communities, most of which currently have little or no access, to help them better compete and do business in the global marketplace.

First District Rep. Bruce Braley called the grants a timely “investment in Iowa's future.”

“Providing much-needed Internet access to rural communities in Iowa will create hundreds of jobs and spur economic development,” he said. “As Iowans continue to recover from an historic economic disaster, it's important we provide schools, businesses and homes with the tools they need to succeed in an ever changing global marketplace.”

The state's ICN is scheduled to get $16.2 million grant with an additional $7.6 million applicant-provided match to upgrade an existing 3,000-mile network to provide 10 Gbps capable points of presence in each of 99 counties, 17 which are economically distressed. It will fund an upgrade of direct high-speed connections for thousands of community institutions, too.

The ICN projects 100 new jobs upfront.

Iowa Health System will receive a $17.7 million grant with an additional $9.9 million applicant-provided match to upgrade its existing fiber network that provides connections to more than 200 health care facilities and improve access for residents and businesses statewide. Iowa Health System's project stands to benefit approximately 1.7 million people. Iowa Health System estimates that the project will directly create approximately 100 jobs upfront.

Other Iowa businesses getting grants are:

Farmer's Telephone Co. of Riceville -- $18.7 million grant/loan with an additional $4.7 million applicant-provided match will construct a FTTP network, 250 jobs.

Grand River Mutual Telephone Corporation -- $9.3 million grant/loan to provide broadband service to Lorimor, Murray and Thater and surrounding rural areas via a FTTH network, no job estimate.

Ellsworth Cooperative Telephone Association -- $5.3 million grant/loan to provide high speed Internet service in Ellsworth and Garden City communities, no job estimate.

Breda Telephone Corp -- $2.6 million grant/loan project coupled with $2.6 million in outside capital to upgrade two of seven rural exchanges -- the Breda and Lidderdale -- in west central Iowa with FTTP broadband, no job estimate.

Grand River Mutual Telephone Corporation -- $20.3 million grant/loan project will provide broadband service to the towns of Corydon, Millerton, Allerton and Lineville, Iowa, and Powersville, Missouri, no job estimate.

According to a National Economic Council analysis, overall Recovery Act investments in broadband are expected to create tens of thousands of jobs in the near term and expand economic development and job opportunities in communities that would otherwise be left behind in the new knowledge-based economy.

The goal of the Recovery Act projects is to bring down the cost of private investment, attract Internet service providers to new areas, improve digital literacy among students and workers, and help create new opportunities in employment, education, and entrepreneurship by wiring homes and businesses.

New and increased broadband access should help communities compete for new businesses, schools can create distance learning opportunities, medical professionals can provide cost-efficient remote diagnoses and care, and business owners can expand the market for their products beyond their neighborhoods, according to the White House.