FairPoint accepts $37.4 million per year in Connect America funding

FairPoint Communications has accepted $37.4 million per year for the next six years from the Federal Communications Commission’s (FCC) Connect America Fund (CAF). The money will help the carrier expand 10/1 Mbps broadband service to 105,000 locations in 14 states.

The Connect America Fund subsidizes the expansion of high-speed Internet to rural areas, “where market forces alone can’t support expansion.” Carriers that accept CAF funding must expand broadband to funded locations by the end of 2020.

Windstream Communications accepted $175 million from CAF last week. Frontier Communications accepted $283 million in June. The Connect America Fund offered CenturyLink $514.3 million, offered AT&T $484 million, and offered Verizon $143.9 million per year for six years. Carriers must decide by August 27 whether to accept the CAF subsidies with obligations for rural broadband build-out on a statewide basis.

Speed Matters hopes all carriers will participate fully in the CAF program to expand broadband access in rural areas.

FairPoint takes $37.4M in CAF II funds, eyes broadband expansion for 105K locations (FierceTelecom, Aug. 19, 2015)

Windstream accepts $175 million in Connect America funding (Speed Matters, Aug. 9, 2015)

FCC’s Connect America II offers $1.7B to expand rural broadband service (Speed Matters, Apr. 30, 2015)