TDS Telecom wins $114.5 million in broadband stimulus funding

TDS Telecom (NYSE: TDS) has just racked up a sizeable broadband stimulus grant of $114.5 million to conduct broadband expansion projects in 18 states.

In March, TDS submitted 46 applications for the second round of broadband stimulus funding under the American Recovery and Reinvestment Act and this week received funding approval for 39 of those projects.

After receiving $12.5 million in the first round of broadband stimulus funding to build and expand broadband networks in Michigan and Alabama, TDS will receive $85.9 million in federal grants that will be matched with $28.6 million of its own funds.

Andrew S. Petersen, director of external affairs and corporate communications for TDS Telecom said that while "over 93 percent of our customers nationwide have access to our high-speed Internet service today," the new funding will enable it to "bring reliable and affordable broadband out to some of our most difficult to reach customers."

After it signs the contracts, TDS Telecom will have to complete the broadband networks within 24 to 36 months. Right now, TDS is working on broadband expansion projects in Chatham, Michigan and Butler, Alabama that were funded during the first round that it expects to complete in 2012.

While TDS Telecom has not revealed the broadband infrastructure vendors for either project, the ongoing broadband stimulus awards have become a new revenue haven for infrastructure vendors (ADTRAN, Alcatel-Lucent, Calix, Occam Networks, and Tellabs).   

For more:
- see the release here

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