State seeks $142 million from stimulus for rural Internet access

Big River Telephone will be part of Missouri's request for $142 million of federal stimulus money to expand high-speed Internet access to remote parts of the state, Gov. Jay Nixon announced Wednesday.

A project proposal being submitted today to the federal government calls for laying 2,500 miles of fiber-optic cable and constructing 200 broadband towers across the state. Local Internet service providers then would hook into the system to provide coverage to homes and businesses.

"Just as the railroads and interstates transformed Missouri communities in decades past, this massive undertaking would truly help connect every corner of Missouri with the information superhighway of the future," Nixon said.

Big River Telephone will be a "last mile" provider under the plan, which enlisted a subsidiary of the Marshfield, Mo.-based Sho-Me Power Electric Cooperative to lead the effort. The subsidiary, Show-Me Technologies, would contribute $8.4 million worth of fiber lines for the expanded network.

High-speed Internet is available to fewer than 80 percent of Missouri residents. The proposal would extend access to more than 91.5 percent of the state's population, Nixon said.

Big River would use the Advanced Wireless Spectrum, a frequency it won at a Federal Communications Commission auction, to send out broadband signals, said Kevin Cantwell, president of the company. Big River wants to provide high-speed access to eight Southeast Missouri counties.

Basic service will be priced at $9.95 per month, Cantwell said. The price would rise based on the speed of the service, but he expects to keep rates low to individual customers by signing contracts with cellular telephone providers to piggyback their service on the towers that would be built.

"There are a lot of costs I eliminate when we don't have to use the copper wires in the ground," Cantwell said.

The federal stimulus package includes $7.2 billion for broadband expansion nationally, most of which is aimed at underserved rural areas. The funding is to be distributed through competitive grants and loans.

Big River would add 59 new employees quickly and expand that number to 100 within a short time. The jobs would include installation, "customer experience representatives" and retail outlets in eight counties.

Missouri is proposing to match its requested federal grant with $25.2 million that the state previously received under the stimulus act.

Nixon said the project could provide the infrastructure needed for hospitals and medical clinics to make better use of telemedicine and electronic health records.

"This project has the potential to connect doctors and patients across our state at the speed of light; open the doors of our colleges and universities to students in every corner of Missouri; and expand markets for our small businesses not only around Missouri, but all across the globe," Nixon said.

The federal government is expected to announce awards for the high-speed Internet grants in December, the governor's office said.

Nixon said Missouri also was working with local Internet service providers to apply for stimulus funds to build the "last-mile" extensions of the proposed broadband network.

Staff writer Rudi Keller contributed to this report.

Pertinent address:

Cape Girardeau, MO