Energy Solutions

Small ILECs are big winners in first broadband stimulus awards

Small incumbent local exchange carriers (ILECs) won a substantial share of the broadband infrastructure funding awards announced Dec. 17 as part of the American Recovery and Reinvestment Act.

A close look at the awards list reveals that of 12 awards made to support the construction of broadband infrastructure, five went to small ILECs and two went to consortia owned by groups of small ILECs. Other types of companies awarded funds to support broadband infrastructure construction included an electrical cooperative, a joint venture between two electrical cooperatives, two Internet service providers and a joint venture between two wireless operators.

Small ILECs made a particularly strong showing among last mile and middle mile awards made through the Rural Utilities Service, garnering five out of eight total awards. The four middle mile awards made through the National Telecommunications and Information Agency included two to ILEC consortia.

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