In Nebraska, a big step was taken to provide faster internet in rural areas. The state awarded $21 million to four companies through the state’s universal service program under a unique bidding process.
This money comes from funds that were initially for phone services but are now being used to expand internet access.
The four companies that won the award, including Great Plains Communications, Hamilton Consortium, Midstates, and Pinpoint, will work on connecting about 1,100 homes to high-speed internet.
This effort began at the beginning of the year, and officials are optimistic it will significantly improve internet availability in less populated regions.
All four providers, Great Plains Communications, Hamilton Consortium, Midstates, and Pinpoint, had to submit the Post-Auction Commitment Form on or before Friday, April 19, 2024, for each project assumed by the company.
The winners must complete the project by Thursday, March 26, 2026, at 5:00 p.m. Central Time unless they are granted an extension.
Regarding this sudden funding, the Nebraska Public Service Commission explained in a press release that it came from funds unused by or withheld from other well-known providers, including Frontier and Windstream.
From the Windstream area available fund, the PSC awarded over $5.7 Million and $15.2 million funds available from the Frontier area.
Both Windstream and Frontier are local incumbent providers in parts of the state and, according to the PSC, “have traditionally provided only voice service.”
The reverse auction began on Jan 22, and the final round was held on March 11.
Dan Watermeier, chair of the Nebraska PSC, declared the reverse auction a success.
He said, “We are extremely pleased with participation and outcome of the 2024 reverse auction,”
“This process is proving to be a valuable method in ensuring distributed [Nebraska universal service] funds are being used for broadband buildout in Nebraska’s unserved areas.”
Nebraska first started doing reverse auctions in 2022 to award clawed-back universal service funds.
However, reverse auctions are not very popular due to problems with the FCC Rural Digital Opportunity Fund, but Nebraska has several rules to avoid those issues.
Making it a successful reverse auction.
Add Comment