Back in February, the FCC conducted its first auction asking providers to bid on projects in rural areas. The auction encouraged innovation and required, in part, that the bidding company have at least one voice and one broadband service.
A total of 32,124 rural Illinois homes and small businesses will gain access to high-speed Internet service for the first time through the Federal Communications Commission’s Connect America Fund Phase II auction, according to a release.
Almost $100 million will be distributed to businesses in order to help close the gap on quality Internet service to Illinois rural areas.
In Illinois, the auction allocated $99,729,909 in support to be distributed over the next 10 years to expand rural broadband service in underserved areas. Nine providers won support from the Connect America Fund to expand broadband in rural areas where — absent funding — this type of broadband expansion and ongoing service would not be economically feasible, the release stated.
In Effingham County, 98 homes will be served by Wabash Independent Networks, while another 68 homes will be covered by Wisper ISP Inc., based in Mascoutah. Combined the two companies will receive $710,130 in support.
In Shelby County, Benton Ridge Telephone Co., based in Lima, Ohio, will serve 420 homes and small businesses with $797,467 in funding.
In Jasper County, Wisper ISP Inc. will connect 175 customers and receive $1.6 million.
In Clay County, Wabash Independent Networks will serve 219 homes and receive $277,850. Also, Wisper ISP Inc. will serve 28 homes and receive $94,672.
In Fayette County, Wisper ISP Inc. will serve 626 homes and receive $4.7 million.
In Moultrie County, 503 homes and small businesses will be served by Shawnee Communications Inc., based in Lovington, and will receive almost $1.5 million.
Barry Adair, executive vice president and general manager of Wabash Independent Networks in Louisville, said the company's expansion will mostly include residential connections. It has served the Southern Effingham County area since 1952. In recent months, Wabash has joined with EJ Water to form Illinois Fiber Connect.
“We will have full-blown electronics in Effingham, so the service there now will be even better,” said Dave Frigen, Chief Operating Officer of Wabash.
He added that the electronics and fiber — the backbone of the network — is in place and the company plans to build off of that using Connect America Funds.
“Because there may be more miles between houses, the broadband provider may not be able to provide some residential areas with service, but this subsidy will help them to be able to provide,” said Mark Wigfield with the FCC.
The project requirements state that 40 percent of the work must be done by the end of the third year; and an additional 20 percent at the end of each subsequent year; and be 100 percent completed by the end of the sixth year of support.
Wigfield said the FCC has held the universal service of voice access, but this Connect America program provides subsidies to qualifying broadband providers, too.
Nationwide, the auction allocated $1.488 billion in support to be distributed over the next 10 years for 103 providers to expand rural broadband service in unserved areas in 45 states, the release said.
“The successful conclusion of this first-of-its-kind auction is great news for the residents of these rural communities, who will finally be able to share in the 21st-century digital opportunities that broadband provides,” said FCC Chairman Ajit Pai in a release.
Pai added that by “tapping the mechanisms of the marketplace, the Phase II auction served as the most appropriate and cost-effective way to allocate funding for broadband in these underserved communities, bringing the highest-quality broadband services to the most consumers at the lowest cost to the ratepayer.”
The auction encouraged innovation and deployment of robust service by giving providers the flexibility to use any broadband technology to meet the FCC’s buildout and performance standards for fixed service. The auction design included a weighted preference for service with higher speeds, higher usage allowances and lower latency.
As a result, 53 percent of all homes and businesses nationwide served with support from the auction will have broadband available with download speeds of at least 100 megabits per second; and 19 percent will have gigabit service available. In 711,389 locations — all but 0.25 percent — will have at least 25 Mbps service available, more than twice the 10 Mbps minimum standard for the Connect America Fund program, the release stated.
©2018 the Effingham Daily News (Effingham, Ill.) Distributed by Tribune Content Agency, LLC.