Broadband Firm Level 3 Submits $15 Million Bid For Stimulus Funds
August 21 2009 - 3:59PM
Dow Jones News
Level 3 Communications Inc. (LVLT) said Friday it had submitted
a proposal to receive $15 million in federal stimulus funds that
would be used to enhance high-speed Internet access throughout U.S.
rural communities.
The Colorado-based wholesaler of broadband access applied for
the stimulus grant via the Agriculture Department's Rural Utility
Service, or RUS, and the Commerce Department's National
Telecommunications and Information Administration, or NTIA.
President Barack Obama's stimulus packages made available $7.2
billion for broadband investments, but only $4 billion will be
distributed in this first round. The two departmental units - RUS
and NTIA - are tasked with overseeing and doling out the $4 billion
in grants and loans.
Larger telecom firms like Qwest Communications International
Inc. (Q), Verizon Communications Inc. (VZ) and AT&T Inc. (T)
may steer clear of the grants because of the open-Internet strings
that come with government funding.
In the meantime, Level 3 is planning to use its grant funds, if
received, to expand Internet access throughout six states. The
company has declined to release the names of those states as the
application process is continuing.
Additionally, Level 3 plans to use $5 million of its own cash to
help fund the expansion.
The broadband stimulus awards are expected to be announced
around November, with actual funds hopefully being distributed by
the end of the year, Level 3 officials said.
Other companies that could benefit from the stimulus money
include wireless companies like Sprint Nextel Corp. (S) and Leap
Wireless International Inc. (LEAP).
-By Darrell A. Hughes, Dow Jones Newswires; 202-862-6684;
darrell.hughes@dowjones.com
(Fawn Johnson contributed to this report.)