FCC gives ISPs another $563 million to build rural-broadband networks

Enlarge (credit: Getty Images | Bonilla1879)

More than 220,000 unserved rural homes and businesses in 24 states will get broadband access because of funding authorized yesterday by the Federal Communications Commission, the agency said. In all, the FCC authorized more than $563 million for distribution to ISPs over the next decade. It’s the latest payout from the commission’s Connect America Fund, which was created in 2011.

Under program rules, ISPs that receive funding must build out to 40 percent of the required homes and businesses within three years and an additional 20 percent each year until completing the buildout at the end of the sixth year.

The money is being distributed primarily to smaller ISPs in Alabama, Arkansas, California, Colorado, Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New York, North Carolina, North Dakota, Ohio, Oklahoma, Texas, and Virginia. Verizon, which is getting $18.5 million to serve 7,767 homes and businesses in New York, is the biggest home Internet provider on the list.