Frontier Communications has opposed the imposition of Internet regulation and “net neutrality” from the FCC, but on Tuesday the company accepted $283 million in funding from an FCC fund.
The money will be used to expand broadband access in rural areas.
Frontier, which is building out a fiber-optic high-speed Itnernet network across much of Durham and Durham County, is the primary telecommunications provider in Durham County and much of western North Carolina.
The Federal Communications Commission had made “offers” to Frontier for the expansion, which the company said it “accepted.”
The money comes from fees collected through the Connect America Fund.
Frontier says it will use the funds to offer broadband to more than 650,000 “high-cost rural locations.” Those will be spread across the 28 states where Frontier provides service.
“Frontier is a broadband company focused on delivering the life-changing benefits of broadband across our entire service area. CAF Phase II is a critical next step in delivering broadband service – and the major economic benefits associated with it – to rural America,” said Frontier CEO Dan McCarthy in a statement.
“We have reviewed the FCC’s CAF Phase II rules and offers and look forward to partnering with the FCC to achieve our common goal of increased broadband access for rural America. We have decided to accept the CAF Phase II funding more than two months before the formal August 27 deadline because we are eager to start building the infrastructure necessary to provide service to these markets as soon as possible.”
FCC stipulates broadband access as being a minimum of 25 megabits per second but in rural areas it can be 10 Mbps, according to DSLreports.com.
Frontier is a member of the USTelecom trade group, which has sued to block FCC regulation of the Internet.
USTelecom, however, supports the FCC funding.
USTelecom Senior Vice President Jon Banks said in a statement:
“Frontier’s decision to accept the $283 billion in Connect America Fund money is a significant win for consumers, and an affirmative step toward solving the challenge of extending broadband infrastructure in difficult to serve areas. The remaining price cap companies are continuing to evaluate CAF funding and obligations. Modernizing universal service programs in a focused and fiscally responsible way shows how the FCC can help deliver the benefits of the Internet to American consumers and businesses.”
The rural broadband initiative dates to 2011.
Frontier accepted $133 million in an earlier phase of CAF deployments covering 200,000 locations.
