Verizon (NYSE:VZ) is teaming up with the state of New York to expand broadband access in rural locations upstate. The company has been awarded $70.7 million in Phase 3 of the New NY Broadband Program. An additional $12 million from the FCC Connect America Fund (CAF) plus Verizon's own investment brings the total funds to $106.6 million.
The funds are earmarked to support Verizon's deployment of broadband to more than 15,500 rural locations in upstate New York.
"Verizon is focused on delivering broadband service, and the major economic benefits associated with it, to the difficult-to-reach service areas of upstate New York," said Kevin Service, senior vice president of wireline operations for Verizon. "We are pleased to partner with New York State and the FCC to achieve our common goal of increasing broadband access for unserved and underserved areas in the state."
Verizon will leverage its relationship with New York-based Corning (NYSE:GLW) to provide fiber-optic cable and associated hardware to expand its broadband network in targeted unserved and underserved communities.
In April, Verizon announced a three-year minimum purchase agreement with Corning under which Verizon will purchase up to 20 million kilometers (12.4 million miles) of optical fiber each year from 2018 through 2020, with a minimum purchase commitment of $1.05 billion.