Level 3 gets $13.8M in ARRA funds
Level 3 Communications Inc. has won nearly $13.8 million in federal stimulus money to build broadband infrastructure linking rural areas to the national fiber optic networks carrying Internet traffic.
The U.S. Department of Commerce’s National Telecommunications and Information Administration awarded grants on Tuesday to Level 3 EON, a subsidiary of the Broomfield-based telecom (NASDAQ: LVLT), for projects in California, Florida, Georgia, Kansas, Tennessee and Texas.
Level 3 is obligated to spend at least $4.1 million matching the grant money.
The NTIA and U.S. Department of Agriculture’s Rural Utilities Service are overseeing $7.2 billion in grants and loans from the American Recovery and Act Reinvestment that are meant to improve high-speed Internet access in unserved or under-served markets.
“A growing number of Colorado companies are winning grants and contracts from the Recovery Act, helping them to thrive while advancing critical infrastructure projects in this state and across the country,” Colorado Gov. Bill Ritter said in a written statement. “I congratulate Level 3 EON for these latest awards that will help them grow and create jobs.”
Level 3 has not yet commented.
Its awards are among $160 million in grants the NTIA announced Tuesday.
Broadband stimulus will help boost economic growth, create jobs and improve education and health care across the country, U.S. Commerce Secretary Gary Locke said in NTIA’s announcement.
“In a globalized 21st century economy, when you don’t have regular access to the Internet, you don’t have access to all the educational and employment opportunities it provides. Fast, reliable Internet can help keep communities safer, open doors for small businesses and provide job training and skills to more Americans,” Locke said.
Level 3 projects are to extend so-called “middle mile” infrastructure and provide wholesale broadband speeds between 50 megabits-per-second and 10 gigabits-per-second for Internet service providers in a rural or otherwise underserved area. The projects are estimated by Level 3 to improve high-speed access for end customers — as many as 1.3 million households, 69,400 businesses and 1,044 schools, churches, libraries, government agencies and other “community anchor institutions.”
The specific awards are:
• California — a $3.3 million grant, to which Level 3 will add $1.1 million, making available to local Internet service providers. The project should enhance broadband to as many as 240,000 households, 9,900 businesses, and 240 anchor institutions.
• Florida — a $2.1 million grant, to which Level 3 will add $689,000, to enhance broadband for as many as 180,000 households, 12,300 businesses, and 100 community anchor institutions.
• Georgia — $1.4 million grant, to which Level 3 will add $476,000, to enhance broadband for as many as 198,000 households, 13,000 businesses, and 190 anchor institutions.
• Kansas — a $998,000 grant, to which Level 3 will add $333,000 to enhance broadband for as many as 50,000 households, 3,600 businesses and 150 anchor institutions.
• Tennessee — a $1.3 million grant, to which Level 3 will add $432,000 to enhance broadband for as many as 188,000 households, 9,600 businesses, and 150 anchor institutions.
• Texas — a $4.7 million grant, to which Level 3 will add $1.6 million, to enhance broadband to as many as 400,000 households, 21,000 businesses, and 214 anchor institutions.
Denver Business Journal