Federal stimulus act could help expand Mo. rural broadband

JEFFERSON CITY, Mo. -- A speedier Internet hookup might be on its way to some of Missouri's rural residents, courtesy of federal stimulus funds.

About one-fifth of the state's residents live in areas without access to high-speed Internet, according to a 2007 study from the Missouri Public Service Commission, which regulates telecommunications companies and other utilities. Rural areas generally have a much higher percentage than urban cores.

A sliver of the federal economic stimulus package is aimed at bridging that high-speed gap.

The package includes $7.2 billion for broadband expansion nationally, most of which is aimed at underserved rural areas. Portions also are set aside for mapping which areas do not receive service and providing connections to community colleges and libraries.

Glenn Cantrell, SEMO Electric Co-operative spokesman, said that while the provision in the stimulus package would allow cooperatives the ability to access funds for broadband expansion into rural areas, it would be unlikely the co-op would offer broadband in the future. SEMO Electric serves 15,900 members throughout Southeast Missouri.

"I never say never, but upgrading any system would take a minimum of five years," Cantrell said. "It would take millions of dollars in upgrading equipment for that to happen.

"We have other projects we're concentrating on at this moment like improving a meter system that will allow us to better assess an outage before a lineman even has to leave to service it," he said. "Upgrading our equipment for broadband is not something we'd do in the near future."

The broadband funding would come in the form of competitive grants and loans, though the law says each state should expect to receive some portion of the money. Applicants also are required to provide part of a project's funding.

The state is interested in applying for some of federal Internet money but does not yet have a detailed proposal, said Department of Economic Development spokesman John Fougere.

If the state does apply for the funds, it could use the work of a rural broadband task force that released a report before Nixon took office.

Task force member David Klindt said he would like a network to be built with future speeds in mind.

"We don't need to build just for today. We need to look into the future," said Klindt, the vice president of the Association of Missouri Electric Cooperatives. "We should make sure the infrastructure is able to handle things for the next few years down the road."

He said an expanded network would result in more business activity in rural areas and additional education opportunities through online courses.

Southeast Missourian business reporter Brian Blackwell contributed to this story.