Broadband loan program progresses
The Rural Utilities Service's broadband loan program is beginning to see results, and its impact should be greater within the next few years. Since its inception in 2002, the program has made 79 loans for approximately $1.3 billion to finance facilities in 47 states. Ten projects, representing 13% of the total, have been completed, and 43% are in progress, leaving another 44% that have not yet been started or have been rescinded or have seen defaults.
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No single technology dominates the loans that have been granted. Thirty-six percent of loans were for fiber-to-the-home deployments, followed by 26% for fixed wireless, 19% for DSL and 18% for hybrid fiber/coax. A mere 1% of deployments involved broadband over power line.
Traditional businesses, including corporations (53%) and LLCs (36%), dominated the organizations funded, while 7% were co-ops, 3% were municipalities and 1% were tribal authorities.
| Completed | 13% |
| In progress | 43% |
| Not started | 32% |
| Rescinded | 8% |
| Defaults/workout | 4% |
| Source: U.S. Dept. of Agriculture | |
| DSL | 19% |
| Fixed wireless | 26% |
| HFC | 18% |
| FTTH | 36% |
| BPL | 1% |
| Source: U.S. Dept. of Agriculture | |
| Municipalities | 3% |
| Corporations | 53% |
| LLCs | 36% |
| Cooperatives | 7% |
| Tribal authorities | 1% |
| Source: U.S. Dept. of Agriculture | |
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© 2012 Penton Media Inc.
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