TDS Telecom (NYSE:TDS) will receive approximately $75.1 million a year for the next 10 years from the FCC's Connect America Fund (CAF) to expand and improve broadband service to nearly 160,000 homes in 25 states over that time frame.
Funding for the program is intended to support the buildout of rural broadband networks. Depending on location, most TDS customers in rural areas eligible for CAF funding will receive Internet speeds of 25 Mbps downstream and 3 Mbps upstream (25/3). Under the agreement, most of the remaining customers will receive speeds of 10/1 Mbps.
"We look forward to working with our local communities on this massive endeavor to improve Internet speeds," states Kevin Hess, executive vice president at TDS. "Today's consumers want to work remotely and are seeking faster speeds than the existing, deployed DSL technology was designed to handle."
The project is expected to improve broadband service to a majority of the company's total wireline locations in the United States. Nearly 95% of TDS' customers have access to Internet connections, but faster access in rural areas is needed, the company said. Implementation for the project is scheduled to begin in the first quarter of 2017.
"We are proud to be part of this massive modernization project and improved telecom support structure with the FCC," said Hess. "We are eager to get to work building faster connections to the nearly 160,000 homes that are eligible for CAF funding."
