Kansas Broadband News Update
University of Kansas Institute for Policy & Social Research Releases Broadband In Kansas Report
April 1, 2023 – The University of Kansas Institute for Policy & Social Research (IPSR) has released a report titled “Broadband in Kansas: The Challenges of Digital Access and Affordability.” IPSR received funding under the CARES Act to study broadband access in the state of Kansas. To compile the report, IPSR “examined existing data, fielded [its] own survey of broadband speeds and access, conducted focus groups, and commissioned a chapter on the digital divide within the state of Kansas.” A few of the key findings in the report include the following:
The report indicates a rural-urban digital divide in terms of access, affordability, and satisfaction with broadband services. Kansans living outside of cities pay more for slower service than Kansans living in cities.
The data in the report indicate that up to 1,000,000 Kansans live in regions that lack access to high-speed broadband services, now considered to be 100 megabits per second (Mbps) download and 20 Mbps upload (100/20).
Close to half of survey respondents (46%) report dissatisfaction with broadband services.
Kansas Launches Statewide Initiative To Increase Awareness Of Affordable Connectivity Program
March 15, 2023 – Kansas Governor Laura Kelly has announced a statewide initiative to increase awareness of the Affordable Connectivity Program (ACP), which helps lower-income families pay for high-speed internet access service. The ACP is a $14.2 billion federal broadband benefit program that helps ensure that households can afford the broadband they need for work, school, healthcare and more. It provides eligible households a monthly discount of up to $30 per month (up to $75 per month for households on qualifying Tribal lands) and a one-time $100 discount toward a laptop, desktop computer, or tablet. According to the Kansas Department of Commerce Press Release, there are 438,634 Kansas households eligible for the ACP, yet only 93,244 (21%) of those eligible have enrolled. Under Governor Kelly’s initiative, Kansas will partner with EducationSuperHighway, a national non-profit with a mission to close the broadband affordability gap, to “build a broad coalition of local stakeholders, service providers, non-profit organizations, and higher learning institutions to overcome the barriers that prevent households in under-resourced communities from enrolling.”
Kansas To Receive $15 Million In U.S. Department Of Treasury Digital Connectivity Technology Funds
March 8, 2023 – Kansas Governor Laura Kelly has announced that Kansas is the first state to receive $15 million in U.S. Department of Treasury Digital Connectivity Technology (DCT) funds, which will be used to support equal access to high-speed internet, provide devices to underserved Kansans, and expand digital skills training for communities across Kansas. DCT funding is made available under the American Rescue Act Capital Projects Fund (CPF). States have the option to use all CPF dollars for broadband infrastructure or set aside some funding for programs that ensure broadband is more fully accessible to hard-to-reach communities. Kansas will use the funds to “provide the devices and skills training” to ensure all Kansans benefit from the State’s investments to make high-speed internet available in local communities.
Kansas Office of Broadband Development Announces Broadband Roadshow
February 10, 2023 – The Kansas Office of Broadband Development has announced a “Kansas Broadband Roadshow” across the state beginning in Emporia on Wednesday, February 15th. At each stop, staff from the Office of Broadband Development will meet with individuals and broadband stakeholders to learn directly about internet access availability in Kansas communities. The following other Internet access issues also will be discussed: availability, public access, inclusive design, adoption, speeds, safety, privacy, digital skills training, devices, and other topics. Additional information on locations and how to register is available here. The following roadshow stops have been announced:
Feb 15 – Emporia 5:30 to 7 p.m.
Feb 22 – Pratt 12:30 p.m. to 2 p.m.
Feb 22 – Dodge City 5 p.m. to 7:30 p.m.
Feb 23 – Peabody 6:30 p.m. to 8 p.m.
Feb 28 – Manhattan 5:30 p.m. to 7 p.m.
March 2 – Chanute Noon to 1:30 p.m.
March 2 – Pittsburg 5:30 p.m. to 7 p.m.
March 7 – Hiawatha 5:30 p.m. to 7 p.m.
March 9 – Beloit Noon to 1:30 p.m.
March 9 – Great Bend 5:30 p.m. to 7:00 p.m.
March 22 – Topeka 5:30 p.m. to 7:00 p.m.
March 23 – Wichita 5:30 p.m. to 7:00 p.m.
March 27 – Garden City 6:30 p.m. to 8:00 p.m.
March 28 – Sublette 12:30 p.m. to 2:00 p.m.
March 28 – Liberal 5:30 p.m. to 7:00 p.m.
April 4 – Oberlin 5:30 p.m. to 7:00 p.m.
April 5 – Oakley Noon to 1:30 p.m.
April 5 – Goodland 5:30 p.m. to 7:00 p.m.
April 10 – Baldwin City 12:30 p.m. to 2:00 p.m.
April 11 – Kansas City 3:30 p.m. to 5:00 p.m.
April 13 – Paola 12:30 p.m. to 2:00 p.m.
April 13 – Olathe 5:30 p.m. to 7:00 p.m.
April 19 – WaKeeny 2:30 p.m. to 4:00 p.m.
April 19 – Nicodemus 10:00 a.m. to 11:30 a.m.
April 25 – Arkansas City 10:00 a.m. to 11:00 a.m.
May 4 – Salina 5:30 p.m. to 7 p.m.
Kansas Awards Nearly $45 Million In Broadband Grants
January 18, 2023 – Kansas Governor Laura Kelly has announced that $44.5 million will be awarded to nine service providers to extend high-speed broadband internet service to 18,468 locations in 15 underserved counties across Kansas. The awards are being made under the third and final round of the $83.5 million Kansas Capital Project Funds (CPF) Broadband Infrastructure Program.
In total, the $83.5 million CPF awards, combined with roughly $42 million in matching funds, will result in more than 24,500 homes, businesses, schools, health care facilities, and other public institutions being connected to fast, reliable broadband internet access services for the first time. The third-round CPF awards are being made to the following:
AT&T (Sedgwick County) – $2,206,491 – The proposed service area is 99% unserved on the fringes of the Wichita metro area, targeting multi-dwelling unit properties. The project will offer a subsidy to assist with discounted broadband services.
Butler Rural Electric Cooperative Association (Butler, Cowley, Sedgwick, and Sumner counties) – $9,815,894 – The multi-county region targeted is 83% unserved, and 50% of the area is located in an economically disadvantaged county. This significant investment will bring connectivity to south-central Kansas.
Cox Communications (Jackson, Shawnee, and Wabaunsee counties) – $6,373,948 – This multi-county project is 100% unserved. To connect these rural areas northwest of Topeka, Cox will use an affordable, scalable solution already deployed in the KC metro region.
Cunningham Communications (Mitchell County) – $1,192,735 – Hundreds of residences and businesses in this 98% unserved area will be positively impacted by the Fiber To The Home network that will be provided by Cunningham Communications.
GBT Rural (Pawnee and Stafford counties) – $6,782,694 – More than 365 square miles of an economically distressed area with a 92% unserved population will be covered by GBT Rural.
Iowa Tribe (Doniphan County) – $1,424,945 – This very rural, remote, and economically disadvantaged area in the northeast corner of Kansas is 91% unserved. The project will be based on a partnership between the Iowa Tribe, Doniphan County, Rainbow Telecommunications, and the City of White Cloud.
Mokan Dial (Miami County) – $5,590,145 – The 65-square-mile project area is 97% unserved. Mokan Dial will ensure symmetrical speeds up to 1G will be available and affordable to everyone in the targeted region.
Nex-Tech (Decatur and Saline counties) – $10,764,700 – Two separate project areas servicing a 99% unserved area of Saline County and a 93% unserved area of Decatur County. These awards will allow Nex-Tech to build the necessary infrastructure required to reach these rural areas.
WANRack (Johnson County) – $400,000 – This award will target a 100% unserved area of Johnson County. WANRack’s project will enable Kansans to participate in telehealth, remote work, educational opportunities, and the digital economy.
Rural Digital Opportunity Fund: FCC Authorizes RDOF Support For Resound Networks, LLC Winning Bids In Kansas
January 13, 2023 – The FCC’s Wireline Competition Bureau has authorized Rural Digital Opportunity Fund (RDOF) Phase I auction support for 1,764 winning bids. This is the seventeenth Public Notice authorizing RDOF support. Attachment A to the Bureau’s Public Notice contains a list of the authorized winning bids, which belong to Hughes Network Systems, LLC (Rhode Island) and Resound Networks, LLC (Arizona, Arkansas, Colorado, Kansas, New Mexico, Oklahoma, and Texas).
The 1,764 winning bid authorizations were granted after the Bureau reviewed long-form application information for each authorized winning bidder, including letters of credit and Bankruptcy Code opinion letters, and concluded the submissions were acceptable. Consequently, the Bureau has directed and authorized the Universal Service Administrative Company to obligate and disburse Universal Service Fund support to each winning bidder. Support will be disbursed in 120 monthly payments, beginning at the end of January 2023. The first service obligation that must be met by the RDOF support recipients authorized by the Public Notice is the deployment of broadband service to 40% of locations in a state by December 31, 2025. The broadband service must meet the standards for which support was received (i.e., speed levels and latency). After that, these RDOF support recipients must achieve the following broadband service deployment obligations: 60% of locations in a state by December 31, 2026; 80% of locations in a state by December 31, 2027; and 100% of locations in a state by December 31, 2028.
2022
NTIA Awards $5.69 Million In Broadband Planning Grants to Kansas
December 22, 2022 – The U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) has announced that $5,692,606.99 in broadband planning grants has been awarded to the state of Kansas. The award consists of Broadband Equity, Access, and Deployment (BEAD) Program funding for broadband deployment planning and Digital Equity Act funding for digital equity planning.
Kansas will receive $4,999,942.61 in BEAD funding for the following: Development of a 5-year action plan; Identification of unserved and underserved locations; and Capacity building of the Kansas Office of Broadband Development programming.
Kansas will receive $692,664.38 in digital equity planning funds for the following: Development of a statewide digital equity plan to support closing the digital equity gap; Recruit staff and contractual expertise to aid in plan development; and Conducting digital inclusion asset mapping and stakeholder engagement.
Mergers & Acquisitions: Wisper ISP Founder Reacquiring Sole Control Of Company
December 22, 2022 – The FCC’s Wireline Competition Bureau is seeking public comment on a Section 214 application filed by Cable One, Inc., Stephens Wisper, LLC, Wisper ISP, LLC, and Nathan T. Stooke, requesting consent to transfer a controlling interest in Wisper ISP to Mr. Stooke. Comments are due on or before January 5, 2023. Reply comments are due January 12, 2023.
Wisper ISP, Inc., the predecessor-in-interest to Wisper ISP, LLC, was formed in Illinois in 2003 by Nathan Stooke, as the sole owner. Since then, Mr. Stooke has served as the company’s President, in charge of day-to-day operations and strategic vision. In 2020, Wisper ISP, Inc. converted to Wisper ISP, LLC, a Delaware limited liability company, and sold minority interests in the company to: (1) Cable One, Inc. (40.40% ownership), and (2) Stephens Wisper, LLC (18.80% ownership). Mr. Stooke’s ownership interest was reduced to 40.80 percent.
Wisper ISP currently provides fixed wireless or fiber-based broadband and voice services to approximately 19,000 residential and business subscribers in Arkansas, Illinois, Indiana, Kansas, Missouri, and Oklahoma. Wisper ISP won approximately $220 million in Connect America Fund (“CAF”) Phase II auction support in 2018 to deploy service to 80,149 locations in Arkansas, Indiana, Illinois, Kansas, Missouri, and Oklahoma. So far, it has deployed voice and broadband service to more than 40 percent of its CAF-supported locations, and satisfied its requirements to reduce its irrevocable letters of credit by 50 percent. Bidding as a consortium, Wisper ISP and Cable One won Rural Digital Opportunity Fund (RDOF) Phase I reverse auction support in 13 states. Wisper ISP ultimately filed the long-form application for RDO support for 1,151 locations in only three states: Arkansas, Illinois, and Missouri. It was authorized to receive RDOF support in June 2022.
Cable One, Inc. and its subsidiaries provide video, broadband Internet access, and voice services in 24 states. Stephens Wisper, LLC is an Arkansas limited liability company and private equity firm with substantial investments in broadband companies. It is affiliated with Stephens Capital Partners, LLC, an Arkansas limited liability company and investment group based in Arkansas.
Pursuant to the terms of a Membership Interest Redemption Agreement, Cable One and Stephens Wisper will assign and transfer their ownership interests in Wisper ISP, giving Nathan Stooke 100 percent ownership of the company. Bluewater Wisper Ventures LLC, as the agent for lenders and other parties to a loan agreement, will provide or arrange for debt financing for Mr. Stooke to acquire all the ownership interest in Wisper. Remaining loan proceeds will be used to fund accelerated deployment in Wisper’s CAF and RDOF areas. Bluewater Wisper Ventures LLC is owned and controlled by John Gregg and Randall Mays. According to the Section 214 application, the debt financing arrangement may result in Wisper ISP acquiring additional debt, but will not compromise Wisper’s ability to meet its service obligations.
The Wisper Section 214 application has been accepted by the Wireline Competition Bureau for non-streamlined processing, which will allow the Bureau time to sufficiently analyze the exchange and assumption of Universal Service Fund high-cost mechanism obligations.
Rural Digital Opportunity Fund: FCC Ready To Authorize 1,764 RDOF Winning Bids – Hughes Network Systems, LLC & Resound Networks, LLC
December 16, 2022 – The FCC’s Rural Broadband Auctions Task Force, Wireline Competition Bureau, and Office of Economics and Analytics have announced they are ready to authorize support for 1,764 Rural Digital Opportunity Fund (RDOF) Phase I auction winning bids. This is the thirteenth set of RDOF winning bids that are ready to be authorized.
A list showing each winning bid ready to be authorized, the corresponding long-form applicant, each winning bid’s total amount of 10-year support, and other details is available as Attachment A to the Public Notice. The 1,764 winning bids belong to Hughes Network Systems, LLC (Rhode Island) and Resound Networks, LLC (Arizona, Arkansas, Colorado, Kansas, New Mexico, Oklahoma, and Texas).
Attachment B contains a list of winning bids associated with winning bidders or their assignees that are in default. They belong to Resound Networks, LLC (Texas) and Xiber LLC (Illinois, Michigan, and Ohio). RDOF support will not be authorized for these default bids, and the bidders are subject to FCC enforcement action.
To be authorized to receive the support amounts listed for each of the 1,764 bids, Hughes and Resound must submit acceptable irrevocable stand-by letters of credit and Bankruptcy Code opinion letters for each state where they have winning bids that are ready to be authorized prior to 6:00 p.m. ET on January 9, 2023. The FCC will continue to review RDOF long-form applications on a rolling basis, and will announce other approvals of long-forms in future public notices. Additional information on broadband providers set to receive RDOF Phase I auction support and RDOF funding amounts by state are available on the FCC’s RDOF auction website.
Kansas Capital Project Funds Broadband Grant Program Second Round Awards: $23.1 Million For Six Projects
December 15, 2022 – Kansas Governor Laura Kelly has announced that $23.1 million will be awarded to six service providers for projects that will bring high-speed broadband service to nearly 4,200 homes, businesses, schools, health care facilities, and other institutions in unserved and rural areas of Kansas. The awards are being made under the second round of the Kansas Capital Project Funds (CPF) Grant Program. A total of $15.7 million was awarded in the first round. A final third round is forthcoming. The CPF is funded by an $83.5 million allocation from the U.S. Department of Treasury’s Coronavirus Capital Projects Fund. The following broadband service providers are receiving the second round awards:
IdeaTek – (Finney, Haskell, Scott, Seward counties) – $7,943,385 to connect 1,121 premises
KwiKom – (Franklin, Lyon, Osage counties) – $1,810,941 to connect 1,333 premises
Mokan Dial – (Franklin County) – $6,948,173 to connect 663 premises
PGB Fiber, LLC – (Finney County) – $1,811,463 to connect 137 premises
S&T Communications – (Wallace County) – $997,844 to connect 118 premises
WTC – (Geary, Pottawatomie, Riley, Shawnee counties) – $3,599,749 to connect 814 premises
The maximum grant amount for any CPF-funded broadband project is $10 million. The program will prioritize applications for fiber-optic last-mile network projects that will serve households and businesses in unserved areas, which are defined as areas without access to reliable broadband speeds of 100 Mbps download and 20 Mbps upload. Funded broadband projects must provide broadband services with minimum speeds of 100/20 Mbps. Grantees have two years to complete their projects. All information about the program, as well as the application portal is available on the program’s website.
Mergers & Acquisitions: Private Equity Acquiring Control Of Kansas Broadband Provider Ideatek Telcom, LLC
December 9, 2022 – The FCC’s Wireline Competition Bureau is seeking public comment on a Section 214 application filed by Daniel P. Friesen and IdeaTek Telcom, LLC, requesting consent to transfer control of IdeaTek.
The transaction triggering the transfer of control involves an equity investment in IdeaTek in which Peppertree Capital Fund IX QP, LP will acquire 47.3% of the membership units of IdeaTek, resulting in the majority member, Mr. Friesen, being reduced to a 24.46% ownership of the company. Comments are due on or before December 23, 2022. Reply comments are due December 30, 2022.
IdeaTek, a Kansas LLC and Kansas CLEC, provides competitive voice and broadband services via fiber and fixed wireless to approximately 15,000 subscribers in Kansas. IdeaTek has been designated as an eligible telecommunications carrier (ETC) in areas where it receives Connect America Fund (CAF) Phase II support (6,186,881.60 to serve 2,490 locations in Kansas) and Rural Digital Opportunity Fund (RDOF) Phase I support ($23,590.60 to serve 89 locations in Kansas). IdeaTek has completed its CAF Phase II network deployment to 76% of the 2,490 required locations.
Daniel Friesen, a U.S. citizen, currently owns 51.25% of IdeaTek through IdeaTek Equity Group, LLC and 1.96% individually (53.21% total). He is the sole manager of the LLC. Jerrod Reimer, a U.S. citizen, owns 13.15% of IdeaTek through IdeaTek Equity Group and 0.38% individually (13.54% total).
Pursuant to a Convertible Secured Promissory Note and a Convertible Note Purchase Agreement, Peppertree Capital Fund IX, LP, a Delaware limited partnership, Peppertree Capital Fund IX QP, LP, a Delaware limited partnership, and Peppertree Capital FIX Co-Investors, LLC, an Ohio limited liability company, made a significant debt investment in IdeaTek and acquired the right to convert its debt into ownership of up to a total of 49.5% in IdeaTek, subject to FCC prior consent to a transfer of control of IdeaTek’s domestic Section 214 authorization and wireless licenses. The Peppertree Funds are managed by Peppertree Capital Management, Inc., an Ohio corporation.
Upon consummation, the Convertible Note will convert to equity in IdeaTek, and Mr. Friesen’s ownership interest in IdeaTek will be reduced from 53.21% to 24.46% – triggering a transfer of control of IdeaTek under the FCC’s rules. Mr. Reimer’s interest will fall below 10%. Once the transaction goes through, company management will change. After consummation, the company will be managed by a five-person board consisting of Mr. Friesen, Mr. Reimer, and Mr. Daniel Solomon, the company’s CFO, along with two members appointed by Peppertree Capital Management.
Clearwave Fiber Announces Plans For Fiber Network In Salina Kansas
December 8, 2022 – Clearwave Fiber has issued a press release announcing it will extend its fiber network to Salina, Kansas. Clearwave Fiber is a joint venture owned by Cable One, the majority owner, and three private equity firms. It holds Cable One’s subsidiary Clearwave Communications and certain fiber assets of Cable One’s subsidiary Hargray Communications. Clearwave Fiber provided the following details on the Salina, Kansas deployment:
This latest expansion marks the continuation of the company's Kansas buildout, expected to deliver fiber internet service to approximately 9,000 Salina, Lansing, Spring Hill, and Desoto households by early 2023 and advancing its goal to bring the best and fastest Internet technology available to more than 500,000 homes and businesses across the United States by 2026.
Auction 108: FCC Grants 51 Long-Form Applications & Issues 650 Spectrum Licenses
December 1, 2022 – The FCC’s Wireless Telecommunications Bureau has announced the grant of 51 long-form applications and issuance of 650 licenses for Auction 108. Attachment A to the Public Notice lists the granted licenses sorted by licensee. Attachment B lists the granted licenses sorted by market. The Wireless Bureau announced the results of Auction 108, the auction of new flexible-use geographic overlay spectrum licenses in the 2.5 GHz band, on September 1, 2022. The auction resulted in a total of $419,133,261 in net bids and $427,789,670 in gross bids. A total of 63 bidders won 7,872 of the 8,017 offered licenses, or 98% of the total inventory. Of the 63 winning bidders, 77% qualified as small businesses or as entities serving rural communities. The five bidders that won the largest number of licenses are as follows:
T-Mobile License LLC – 7,156
North American Catholic Educational Programming Foundation – 107
Evergy Kansas Central – 54
LICT Wireless Broadband Company, LLC – 46
Broadband One of the Midwest, Inc. – 42
Kansas Capital Project Funds Broadband Grant Program Awards $15.7 Million To Seven Broadband Providers
November 4, 2022 – Kansas Governor Laura Kelly has announced that $15.7 million is being awarded under the Kansas Capital Project Funds (CPF) Broadband Grant Program to deploy high-speed broadband service to underserved, economically distressed, and low-population areas of Kansas. Seven broadband providers are receiving the funding to “connect more than 1,900 homes, businesses, schools, healthcare facilities, and other public institutions to fast, reliable internet in the next 24 months.” This is the first of three rounds of awards under Kansas’ CPF Broadband Grant Program, which is funded by an $83.5 million allocation from the U.S. Department of Treasury’s Coronavirus Capital Projects Fund. A total of 141 applications requesting $693 million in CPF funding were submitted. Additional information on the program is available from the Kansas Office of Broadband Development. The seven broadband providers receiving awards under the first round include:
Craw-Kan Telephone Cooperative (Anderson and Allen counties) – $4,584,590 to connect 385 premises,
Giant Communications (Jackson County) – $895,295 to connect 163 premises,
MT Networks LLC (Coffey County) – $2,581,932 to connect 326 premises,
Nex-Tech (Thomas County) – $541,320 to connect 64 premises,
Pioneer Communications (Hamilton County) – $202,484 to connect 54 premises,
S&A Telephone (Lyon County) – $3,746,870 to connect 421 premises, and
Totah Communications (Montgomery and Chautauqua counties) – $3,244,793 to connect 500 premises.
Evergy Constructing Private Wireless LTE Network In Kansas & Missouri
November 1, 2022 – Evergy, an investor-owned utility headquartered in Topeka, Kansas, and Kansas City, Missouri, is constructing a private wireless LTE network to help enable its electric grid modernization efforts. Evergy’s LTE network will utilize two spectrum bands: 900MHz and 2.5GHz. Evergy is leasing 900MHz spectrum licenses from Anterix covering about 3.88 million people in Evergy’s service areas in Kansas and Missouri. The leases run for 20 years with two ten-year renewal options, and will cost Evergy $30.2 million. Evergy’s private wireless LTE network will reportedly “support a variety of utility use cases, including accelerating decarbonization of the grid, engineering access, fault circuit indicators, line regulators and advanced metering infrastructure solutions.”
Kansas Broadband Office Receives 141 Applications For Capital Project Fund Program; Announces Public Comment Window
August 25, 2022 – The Kansas Office of Broadband Development has announced it has received 141 applications seeking broadband funding from the Capital Project Fund (CPF) Program. In total, the 141 applications request over $600 million in funding from the $83.5 million program. The Kansas Broadband Office has also announced that the Phase Two Public Comment Window for the 133 CPF Program applications received as of August 19, 2022, is now open. The comment window is available from August 24, 2022, through 11:59 pm CST September 6, 2022. The public comment portal and applications are available online. Application materials include project summaries and maps of the proposed service areas. The Kansas Office of Broadband Development encourages ISPs, the public, and other interested stakeholders to participate by expressing either support or specific concerns for the proposed CPF projects. CPF grant applicants will have an opportunity to respond to any public comments directed at their projects. The Kansas Broadband Officer intends to post comments and grant applicant responses received during the public comment period to the CPF Grant Program Public Comment website.
Kansas Now Accepting Applications For $83.5 Million Capital Projects Fund Broadband Grant Program
July 26, 2022 – The Kansas Office of Broadband Development has announced it is now accepting applications for its new Capital Projects Fund broadband infrastructure grant program. The application window runs from July 26, 2022 until 5:00 pm central time on August 19, 2022. Following the close of the application window, there will be a four-week public comment and applicant response window. The total amount of funding for the program is $83.5 million. The maximum grant amount for any funded broadband project is $10 million. The program will prioritize applications for fiber-optic last-mile network projects that will serve households and businesses in unserved areas, which are defined as areas without access to reliable broadband speeds of 100 Mbps download and 20 Mbps upload. Funded broadband projects must provide broadband services with minimum speeds of 100/20 Mbps. Grantees will have two years to complete their projects. All information about the program, as well as the application portal is available on the program’s website.
Kansas Announces Broadband Grant Program Using $83.5 Million From Capital Projects Fund
July 14, 2022 – Kansas Governor Laura Kelly has announced the launch of a new broadband grant program using $83.5 million in Capital Projects Fund money. Kansas’s Expansion of New Development Projects Offering Internet Networking & Telecommunications (ENDPOINT) program will distribute the $83.5M in the form of broadband infrastructure grants for unserved and underserved areas in Kansas. The U.S. Department of the Treasury awarded the $83.5 million in Capital Projects Fund support to Kansas to connect 21,300 homes and businesses with high-speed internet services.
The Kansas Department of Commerce’s Office of Broadband Development will oversee the ENDPOINT program. Eligible entities include internet service providers, political subdivisions, cooperatives and non-profit organizations. Funded projects must deliver broadband service with symmetrical download and upload speeds of at least 100 Mbps. The program will prioritize fiber-optic infrastructure projects that focus on achieving last-mile connections. Middle mile will be funded only if required for the last-mile build. The application window will be open for four weeks on July 25, 2022. Grant awards will be announced in October and November.
Treasury Announces Over $350 Million In Capital Projects Fund Awards For Kansas, Maine, Maryland, And Minnesota
July 14, 2022 – The U.S. Department of the Treasury has announced the approval of Coronavirus Capital Projects Fund awards for Kansas, Maine, Maryland, and Minnesota. The four awards total over $350 million and will be used by the four states to increase access to affordable, reliable high-speed internet to an estimated 84,000 homes and businesses. Each state plans to use its Capital Projects Fund award to support broadband infrastructure designed to deliver reliable internet service that meets or exceeds symmetrical download and upload speeds of 100 Mbps. The following summarizes the four state plans recently approved by Treasury:
Kansas, approved for $83.5 million (representing 58% of its available Capital Projects Fund funding), estimates it will connect 21,300 homes and businesses by building high-speed internet service in areas where there is a demonstrated need. The Broadband Acceleration Grant Program, a competitive grant program, will contribute to bridging the digital divide by providing access to reliable high-speed internet connections. Capital Projects Fund dollars will help build reliable infrastructure that is affordable in the areas the program is designed to serve.
Maine, approved for $110 million (representing 86% of its available Capital Projects Fund funding), estimates it will connect 22,500 homes and businesses by supporting the Maine Infrastructure Ready to invest in qualified locations that can be served by line extensions of existing networks or new networks. This competitive grant program is focused on serving locations that currently lack access to reliable high-speed internet access, including remote locations in Maine’s most rural counties.
Maryland, approved for $95 million (representing 55% of its available Capital Projects Fund funding), estimates it will connect 16,667 homes and businesses by supporting the Network Infrastructure Grant Program, a competitive broadband grant program that will provide funding directly to internet service providers (ISPs) for qualifying large-scale broadband projects in areas that lack service. The program aims to close the racial and socioeconomic digital divide across the state.
Minnesota, approved for $68.4 million (representing 38% of its available Capital Projects Fund funding), estimates it will connect 23,517 homes and businesses by using the funds for its Border-to-Border Broadband Development Grant Program, a competitive grant program designed to provide financial resources for new and existing ISPs to invest in building broadband infrastructure in areas of the state that currently lack high-speed internet.
Created by the American Rescue Plan Act of 2021, the Capital Projects Fund allocates $10 billion to the Treasury Department to provide payments to states, territories, and Tribal governments “to carry out critical capital projects directly enabling work, education, and health monitoring, including remote options, in response to the public health emergency with respect to the Coronavirus Disease (COVID-19).” A key priority for the program is investment in high-quality broadband infrastructure and other connectivity infrastructure, devices, and equipment.
The Treasury Department announced the first four Capital Projects Fund awards to Louisiana, New Hampshire, Virginia, and West Virginia on June 7, 2022. So far, Treasury has awarded more than $915 million in Capital Projects Fund awards to states for investment in high-speed internet infrastructure estimated to reach nearly 285,000 homes and businesses. Awards have already been approved for 50 Tribal governments. Treasury intends to continue approving state and Tribal plans on a rolling basis, but states must submit their plans to Treasury by September 24, 2022.
T-Mobile Extends Fixed Wireless Home Broadband Service To 81 Towns & Cities In Colorado, Iowa, Kansas, Missouri, & Oklahoma
July 1, 2022 – T-Mobile has announced it has expanded its fixed wireless home internet access service – 5G Home Internet – to 81 cities and towns in Colorado, Iowa, Kansas, Missouri, and Oklahoma. According to the press release, “[w]ith this latest expansion, T-Mobile Home Internet is available to nearly 5 million more homes.” T-Mobile’s fixed wireless Home Internet service costs $50 per month with AutoPay, or $30 per month for families with T-Mobile’s Magenta MAX phone plan. The press release includes a list of the cities and towns where the service is newly available.
Bluebird Network Adds 13.63 Miles Of New Fiber In Salina, Kansas
June 7, 2022 – Communications infrastructure provider Bluebird Network has announced that a fiber expansion in Waterloo, Iowa is live, and an additional fiber expansion in Salina, Kansas is underway and will be ready for service by the end of June 2022. According to the Press Release, both “network builds have a Point of Presence (PoP) within the communities, bringing Bluebird’s full suite of services to local businesses and organizations in need of high-quality, high-speed connectivity.” With the projects, Bluebird has added 11.74 miles of fiber within Waterloo and 13.63 miles of fiber in Salina.
Midco Announces $30 Million Fiber Project In Basehor, Eudora, And Lawrence, Kansas
June 3, 2022 – Midcontinent Communications has announced it will invest $30 million over the next few years to bring a next-generation fiber network to Basehor, Eudora and Lawrence, Kansas. This is part of Midco’s Fiber Forward initiative which uses “Midco’s robust fiber network and next-gen fiber tech to deliver 10G speeds, incredible reliability and increase performance to support what’s next in revolutionary innovations.” Midco included the following details in its announcement:
Over the next few years, more than 65,000 homes and businesses in Kansas will benefit from the future-proof $30 million investment. Fiber Forward will begin this year in Basehor, Eudora and Lawrence to deliver fiber upgrades, enhanced product offerings and increased performance. The upgrade is expected to be completed by the end of 2025.
Mergers & Acquisitions: Nex-Tech Acquiring Moundridge Telecom Companies
May 25, 2022 – The FCC’s Wireline Competition Bureau is seeking comment on a Section 214 application filed by Emmental, Inc., Moundridge Telephone Company, Moundridge Telecom, Inc., Mid-Kansas Cable Services, Inc. (the Moundridge Companies), and Rural Telephone Service Company, Inc. dba Nex-Tech, requesting approval for the transfer of control of the Moundridge Companies to Nex-Tech. Comments are due June 8, 2022. Reply comments are due June 15, 2022.
Emmental is a holding company that provides telecommunications services through its direct and
indirect wholly-owned subsidiaries, all Kansas corporations. Moundridge Telephone Company, founded in 1904, provides local exchange service and exchange access service as an incumbent local exchange carrier in the Moundridge and Goessel exchanges, which services approximately 2,100 access lines in portions of McPherson, Harvey, and Marion Counties in central Kansas. It wholly owns Moundridge Telecom, Inc., a long-distance toll service reseller providing telecommunications services in Moundridge’s local exchange service area. Mid-Kansas Cable Services, Inc. holds a certificate of convenience and authority from the Kansas Corporation Commission to provide competitive local exchange carrier services. Emmental is also the ultimate parent of two other entities that Nex-Tech “intends to acquire as part of the transaction,” but which are not FCC-regulated entities and hold no FCC authorizations or licenses.
Rural Telephone Service Company, Inc. dba Nex-Tech was organized as a cooperative in 1951, and is headquartered in Lenora, Kansas. It provides voice and broadband services, as well as cloud, managed T.T., security and surveillance, hardware and software, and backup services, itself and through subsidiaries in 39 exchanges. It also owns a 42.75% stake in Nex-Tech Wireless, LLC, a commercial mobile radio service provider.
The companies announced the transaction in April 2022. Pursuant to a stock purchase agreement, Nex-Tech will acquire all of the outstanding common stock of Emmental, making Emmental a direct, wholly-owned subsidiary of Nex-Tech, and the other companies indirect, wholly-owned subsidiaries of Next-Tech. Financial terms were not disclosed. The deal is expected to close in July 2022, subject to state and federal regulatory approval.
Kansas Announces Broadband Acceleration Grant Awards
May 20, 2022 – Kansas Governor Laura Kelly has announced that 11 companies have received a total of $5 million in funding under Kansas’ Broadband Acceleration Grant program. The 11 companies contributed $5 million in matching funds, resulting in a total investment of $10 million to bring high-speed broadband service to 10 rural Kansas counties. Kansas’ Broadband Acceleration Grant program is a ten-year, $85 million program supporting the deployment of broadband service to Kansas communities. It is administered by the Kansas Office of Broadband Development, and funded through the Kansas Department of Transportation’s Eisenhower Legacy Transportation Program. In its two years of existence, the program has resulted in the investment of more than $70 million in broadband infrastructure. Details on the 11 awards are below:
Mergers & Acquisitions: Boulevard Digital (Alinda Holdings) Acquiring Consolidated Communications Enterprise Services’ Kansas City Customers And Assets
April 20, 2022 – The FCC’s Wireline Competition Bureau is seeking public comment on a Section 214 application filed by Consolidated Communications Holdings, Inc., Consolidated Communications Enterprise Services Inc. (CCES), and Boulevard Digital LLC (Boulevard Digital) requesting approval for the acquisition of certain customers and assets of CCES in Kansas and Missouri within the Kansas City metropolitan area and surrounding counties and municipalities by Boulevard Digital. Comments are due on or before May 4, 2022. Reply comments are due May 11, 2022.
CCES is a Delaware corporation that is ultimately controlled by Consolidated Communications Holdings. In the Kansas City market, CCES provides competitive telecommunications services to approximately 19,000 consumer voice subscribers, 13,000 consumer broadband subscribers, and 1,900 commercial subscribers, utilizing approximately 1,230 fiber route miles. CCES’ Kansas City business serves the following Kansas municipalities: Fairway, Kansas City, Leawood, Lenexa, Merriam, Mission Hills, Mission Woods, Olathe, Overland Park, Prairie Village, Roeland Park, Shawnee, Westwood, and Westwood Hills. In Missouri, it serves Kansas City, Lee’s Summit, and North Kansas City.
Boulevard Digital is a Delaware limited liability company that was formed for the specific purpose of acquiring the CCES assets. Boulevard Digital is owned by various limited partnerships managed by and controlled by Alinda Holdings, LLC, a Delaware limited liability company and investment entity.
Mergers & Acquisitions: Clearwave Fiber Purchasing Assets Of Kansas Broadband Provider RG Fiber
March 24, 2022 – Clearwave Fiber has announced that it has entered into an agreement to acquire the assets of RG Fiber, a fiber network service provider located in Northeast Kansas. RG Fiber was founded in 2014 to provide higher-speed broadband service in Baldwin City, Kansas. It has a fiber network that spans over 100 miles, and currently provides services to Eurdora, De Soto, Edgerton, Gardner, Spring Hill, Lawrence and Wellsville, Kansas. With its more than 2,000 route-mile fiber network, Clearwave Fiber provides broadband Internet access services in towns and cities across the Midwest and Southeast regions of the U.S. Through the acquisition, Clearwave Fiber is making its initial entry into Kansas. Terms of the deal were not disclosed.
