US Broadband Stimulus Funds Bring WiMAX™ to Rural Communities

WiMAX Companies Receive $504 Million in Funding for U.S. Last Mile Broadband Projects

PORTLAND, Ore.--(BUSINESS WIRE)-- The WiMAX Forum^® congratulates the recipients of the US Department of Agriculture’s RUS Fund round two grants and loans. The 40 awardees from 22 states received over $504 million in grants and loans for use in the deployment of WiMAX networks.

“The allocations of these funds are a significant win for the awardees, and for the greater broadband wireless industry. But more than that, the real big winners here are the consumers in rural communities who will benefit from affordable broadband services via WiMAX,” said Ron Resnick, president and chairman of the WiMAX Forum. “WiMAX is the ideal technology to help bring broadband to those who currently can’t get access while keeping service and device costs low – from small towns across the U.S. to rural villages in India.”

Broadband service in these areas can enable vital services such as eGovernment, distance learning and remote healthcare. Rural broadband also brings new economic opportunities to these remote areas. According to a recent report by the Brookings Institution, for every 10 percent increase in broadband penetration of a rural area, the number of non-farming jobs grows by 0.2 – 0.3%.

"This most recent award is great news for the 18,000 Mississippi residents and 1,300 businesses who will experience the benefits of 4G mobile broadband when we deploy over the next six to nine months,” said Kelley Dunne, CEO and co-founder of Digital Bridge Communications, a WIMAX Forum member company. “This award comes after DBC received one other RUS Round Two award in Indiana and three NTIA round one awards in Idaho--reflecting support by both agencies for WiMAX, a proven 4G technology that is deployed rapidly and maximizes the number of households receiving broadband per network dollar. We will apply for additional funding near our existing markets through RUS Farm Bill and other economic development programs."

The WiMAX Forum estimates that for every dollar spent on a new network, a WiMAX operator can cover 10 to 20 times the number of homes and businesses with WiMAX service than can be covered with wireline options. These savings are passed along to the customer, who spends only $25-$35 a month on a WiMAX connection with comparable speed to $50-60 cable or wireline service.

“The RUS stimulus funds will enable small companies to bring broadband to homes that have been out of reach of wireline technologies,” said Jeff Tamietti, CEO of EcliptixNet Broadband, Inc., a recipient of a $20.4M RUS loan/grant combination. “Over the next three years, we plan to build a 3.65GHz mobile WiMAX network spanning over 1,500 sq. mi., covering 46,000 rural homes and businesses in Washington State that will help bring new economic opportunities to the area.”

According to the USDA, by leveraging $2.5 billion in Recovery Act funding authorized by Congress, it has been able to provide loans and grants of $3.6 billion to construct 307 broadband infrastructure and satellite projects in 46 states and one territory. RUS’s Notices of Funds Availability (NOFAs) allocated approximately $2.2 billion in round two awards for broadband infrastructure projects, with $1.67 billion in grants and $779.1 million in loans going to last mile broadband projects.

Rural America is home to about 17 percent (50 million) of the nation's people and accounts for 75 percent of the nation's land, according to the United States Department of Agriculture. About 12 percent of U.S. households have no access to broadband service, placing the U.S. at 15th in broadband penetration worldwide.

The WiMAX Forum's membership base represents a thriving WiMAX ecosystem which supports nearly 600 WiMAX network deployments in 149 countries. A complete list of members is available online at www.wimaxforum.org/about/. For more information on the U.S. Broadband Stimulus efforts, please visit http://www.broadbandusa.gov/.

About the WiMAX Forum^®

The WiMAX Forum^® is an industry-led, not-for-profit organization formed to certify and promote the compatibility and interoperability of broadband wireless products based upon IEEE Standard 802.16. A WiMAX Forum goal is to accelerate the introduction of these systems into the marketplace. WiMAX Forum Certified products are interoperable and support broadband fixed, nomadic, portable and mobile services. The WiMAX Forum works closely with service providers and regulators to ensure that WiMAX Forum Certified systems meet customer and government requirements. Through the WiMAX Forum Congress Events Series of global trade shows and events, the WiMAX Forum is committed to furthering education, training and collaboration to expand the reach of the WiMAX ecosystem. For more information, visit the trade show link at www.wimaxforum.org.

“WiMAX,” “Mobile WiMAX,” “Fixed WiMAX,” “WiMAX Forum,” “WiMAX Certified,” “WiMAX Forum Certified,” the WiMAX Forum logo and the WiMAX Forum Certified logo are trademarks or registered trademarks of the WiMAX Forum. All other trademarks are the properties of their respective owners.

CONTACT:

GolinHarris for the WiMAX Forum
Mari Hancock, +1-713-513-9574
mhancock@golinharris.com

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