AT&T (NYSE: T) is putting to use $19 million in CAF-II (Connect America Fund Phase II) funds over six years to expand its broadband reach in Kansas to 35,000 rural and urban areas, the incumbent carrier announced. The amount is part of an annual $428 million in CAF-II funding that it accepted from the FCC in late August to support broadband buildout efforts in the states in which it operates.
The Tier 1 provider is utilizing one of the largest funding amounts provided by the Federal Communications Commission (FCC) for the second phase of the CAF program, which aims to enable high-speed broadband in areas that typically aren't served by most providers due to the cost of building and maintaining such networks.
"Over the next six years, we will accept nearly $19 million annually to expand high-speed Internet service to 35,000 rural Kansas homes and businesses currently without a competitive broadband provider," said Mike Scott, president of AT&T Kansas. "AT&T has been investing in our innovative networks in urban and rural areas across Kansas for more than 135 years, and we are pleased to participate in this program and continue bringing high-speed Internet services to more Kansans."
Similar to other states for which it is accepting CAF-II funds, AT&T has pledged to bring speeds of up to 10 Mbps downstream and 1 Mbps upstream to homes and businesses in Kansas.
Broadband has become AT&T's bread and butter. The carrier reported to the Securities and Exchange Commission in September that it expects to see "positive IP broadband net adds" in the third quarter as it continues to convert legacy DSL customers to IP broadband networks.
AT&T will report its third-quarter earnings on Oct. 22.
For more:
- see the release
- see this FCC announcement
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