DES MOINES – Iowa Gov. Terry E. Branstad and Lt. Gov. Kim Reynolds today were joined at the administration’s weekly press conference by leaders from CenturyLink, Windstream, Frontier and Consolidated Communications to announce that the companies will expand broadband internet services across Iowa to nearly 90,000 homes. The broadband internet expansion, a priority of the Branstad-Reynolds administration, was made possible by $53.2 million in grants from the Federal Communication Commission’s (FCC) Connect America Fund (CAF).
SEE THE MAP OF THE EXPANSION TO UNSERVED AND UNDERSERVED AREAS
“In Iowa, technology and access to broadband Internet is the great equalizer for our rural communities,” said Branstad. “We have put a focus on broadband Internet expansion because if our small businesses are to compete in a global economy, our schools are to have access to an abundance of online learning resources and our farmers are to connect their modern equipment for precision farming, we must connect every acre with broadband infrastructure. I’m pleased that CenturyLink, Windstream, Frontier and Consolidated Communications are all choosing to invest in Iowa to connect our communities.”
“To date, nineteen communities across our state have become certified Connected Communities. These cities and towns have demonstrated a commitment to continued economic growth by embracing the opportunity presented by 21st century technology,” said Reynolds. “As an elected official who grew up in rural Iowa, I know that a key part of maintaining continued growth in all corners of our state is our vision to connect every acre with broadband Internet and becoming the most connected state in the Midwest.”
The FCC created the CAF in 2011 to foster growth in broadband access by transitioning funding that was supporting rural landline service to broadband service.
Joining the governor and lt. governor at the press conference were Michael Sadler, Assistant Vice President Public Policy and Government Relations of CenturyLink, Gregory Gray, Iowa Operations Chief of Windstream, Jack Phillips, Director of Government and External Affairs of Frontier and Mike Shultz, Vice President Regulatory and Public Policy of Consolidated Communications. The companies are planning the following buildout of broadband Internet in Iowa:
· CenturyLink will be receiving $17,893,887 to build out broadband to 34,827 locations.
· Windstream will be receiving $28,672,554 to build out broadband to 44,930 locations.
· Frontier will be receiving $4,240,587 to build out broadband to 5,438 locations.
· Consolidated Communications will be receiving $2,393,216 to build out broadband to 3,019 locations.
Waste of tax payer dollars.
Do the math, this is a $60,385 payment for each new internet customer. (Don’t tell me they don’t have satellite service now.) Who in their right mind would pay a company $60,000 for a 10MB download and 1MB upload connection up front? If you are going to pay that much at least give me some speed. Also, there is no mention of the monthly fee these customers are going to pay for the service. My guess is that the farmers will keep the service they already have, and this will be more of a disaster in the end.
Was there a business case study done on this as far as cost versus benefit? No, normal political deal. We will have these companies trenching cable to…
Recheck your math.