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Windstream wants $238M from RUS for broadband, some of which will go to areas with cable service already. Windstream now tells me they will reach 160K-190K unserved, which means it's a reasonable project. Congress has said the stimulus should give priority to reaching the unserved, and RUS administrator Jonathan Adelstein echoes that sentiment (as I do.) When it became clear round 1 of the stimulus did very, very little for the unserved, Adelstein and Strickling of NTIA were castigated by the Congressional committee, both Democrats and Republicans.
A senior FCC official in August told me "I've given up on the stimulus having any effect." Adelstein responded by changing the rules to emphasize reaching the unserved, http://bit.ly/c0l2DI Strickling instead moved $3B into an amorphous pool called "middle mile" with rules so slack he could fund almost anything he pleases. I've looked at all the public application to Strickling and there simply aren't $3B in projects that are worth spending money on. I therefore applauded when Congress pulled back $800M from the broadband stimulus, although I continue to strongly support government funding where it's really needed.
39 companies, including Time Warner and Comcast, filed objections with RUS that they serve areas Windstream wanted subsidized. When I asked Windstream for how many "unserved" they reached, the answer was "We don't have a breakdown of how many unserved homes will be reached," and also refused to let me see anything in their application except an uninformative summary. When companies don't answer reasonable questions - like are you meeting the primary goal of your project? - I have to go with what I have.
Nor would RUS provide any data on whether this project reached the unserved.
I spent the July 4th weekend intensively researching Windstream and wrote the article below under the title "Windstream: Say No! to our RUS Grant." It turned out Windstream VP Frank Schueneman had spoken out when NTIA funded a competitor to them, the notorious North Georgia project I've referred to the NTIA Inspector General. What I found suggests that without a subsidy, Windstream could and should do more to serve their customers. They are currently running with capex 30-40% lower than depreciation, close to the bare minimum to keep the system running. The capex gap is about half a billion, more than enough to cover costs of broadband if regulators had courage and competence. They are using the cash temporarily saved to maintain one of the highest dividends on the stock exchange, 9.4%. In 2009, their dividend was $100M higher than their earnings.
I sent the article to them and RUS for factchecking because $238M of government spending is involved. With the article in hand, Windstream choose to provide the figure for "unserved," 160-190K. That implies the cost of reaching the unserved is about $2K/home, high but not out of the ballpark for rural territories. I therefore recommend the project be funded after a careful review of the budget.
In particular, I urge RUS and Windstream to go over the maps and find a way to stretch the $238M to reach 96-98% of Windstream homes, not 93-94%. That could be done by re-allocating part of the money from currently served territories to the unserved. In going over the details with me, Schueneman made clear he understands the ways DSL can be extended further, including mini-DSLAMs, small pedestals, pole-mounting, and bonding. With guidance from RUS, I think he can reach more homes. Alternately, I hope RUS goes closely over the proposal with an eye to saving public money. The rules specify that RUS should give priority to projects asking less than 75% grants, a powerful lever to negotiate the grant percentage down. (This is even more important in the larger Qwest application. Both are reasonable projects, but according to the publicly available data many of the subsidies could be reduced 30-60% and the companies would still have a good deal.) The odds are good that Windstream will upgrade the areas where they have competition even without funds, so Congress was right to make that a low priority. In practice, the fiber and other investments for the unserved will lower Windstream's cost of improving service in their current areas, making upgrades even more likely.
Here's the original article, based on Windstream not indicating they were reaching many of the unserved. The new 160K to 190K figure refutes my thought Windstream is apparently not planning to reach many [unserved.] I've also appended all the individual Windstream application summaries.
There's a second error in the below that I would have corrected before publication, and thanks to B. for pointing it out. The stimulus legislation has a sensible provision that the government not give money to projects the companies would likely do on their own. Since I believe telcos will likely upgrade most areas with cable competition, that would have made a project that is mostly a cable overbuild actually illegal. However, the "but for" rules only apply to the NTIA grants, not RUS. I hope some D.C. reporter tracks down why they make that exception.
Windstream: Say No! to our RUS Grant
Windstream's Frank Schueneman, vice president of regulatory policy, is very clear about why Jonathan Adelstein should just say no to Windstream's $238M request. A huge portion of the money would go to areas that already can get cable service at higher speeds than Windstream intends to offer. Very little will be spent on broadband for the unserved. "Windstream has hired every lobbyist in town," I hear, and Adelstein will have a hard time doing what he should.
Schueneman has a strong opinion on projects like what his company is proposing. "It doesn't sound reasonable that a competitor would get tax dollars to compete. It's not an issue of getting broadband to people who don't have it -- that's probably a good goal for our country. But this is essentially an overbuilding of an existing, capable network ... that we made millions and millions of dollars of investment in," he told Grant Gross of IDG about the North Georgia project. North Georgia was a mistake, with contradictions in their claims that should have led Larry Strickling to freeze the project funds. Not merely was most of it overbuilding territory that Windstream was already serving with 12 megabits, the price tag was as much as ten times as high as similar fiber builds elsewhere. I've referred North Georgia to the NTIA Inspector General although I haven't heard about any followup.
Windstream apparently decided they wanted to get in to the action. They have extraordinary access to RUS. Windstream's chief lobbyist, Eric Einhorn, was an aide to RUS Administrator Adelstein. He worked closely with Adelstein's recent chief of staff, Lisa Zaina. Zaina herself represented Frontier as recently as 2007 as executive of ITTA.
Before Jonathan lured her back into government, she represented the wireless association. I assume she has recused herself from matters involving the companies she represented at ITTA, but haven't found any record of that.
Although the stimulus is designed to reach unserved homes, Windstream is apparently not planning to reach many. (above - not so) "We don't have a breakdown of how many unserved homes will be reached." That's surprising, because they were required to submit maps clearly delimiting unserved areas as part of their application. In addition, any company like Windstream has pretty darn accurate maps of where they have competition. That they are holding back that information strongly suggests to me they are not reaching the unserved.
At least 6 cable companies have filed with RUS they serve some of the proposed areas, including Comcast, Cox, and Time Warner. All generally offer higher speeds than the 6-12 maximum (no average cited) that Windstream wants to get paid to offer. I count a total of 39 carriers who have filed objections on the applications below. Windstream's own trade association, ITTA, in November, insisted "the second round of BTOP and BIP funding should be focused on bringing broadband service to unserved areas."
It's almost certainly illegal for Jonathan to approve the funding because the legislation requires certification that the projects would not otherwise be built. (above, not so) Windstream's Einhorn in an official filing in November spoke of their plans for "broadband deployment." Now, Windstream declares in their application they would not do any more deployment without a huge subsidy. CEO Jeff Gardner's testimony to the Senate includes a claim that any increased deployment would require a subsidy. Mistakes like that cost him credibility.
Windstream and nearly all telcos plan to eventually cover with DSL or fiber nearly all the areas in which they compete with cable because they are losing all their customers there. The churn is often 15% per annum where cable offers modems and telcos don't. Frontier's Steven Crosby describes the strategy of a similar telco. "We want to have the service available to sell to as many people as possible. That's our business. We expect to continue increasing our coverage as technology gets better and capital is available."
Windstream is currently running with capex 30-40% lower than depreciation, close to the bare minimum to keep the system running. They are using the cash temporarily saved to maintain one of the highest dividends on the stock exchange, 9.4%. In 2009, their dividend was $100M higher than their earnings. A capital squeeze is the actual cause of the high number of homes without DSL, especially because many will be profitable. Government loans may well be appropriate, but grants would be a giveaway.
One of the most important findings of the broadband plan was that less than 1/2 of 1% of U.S. homes were prohibitively expensive to reach. Windstream's rural territories might well have 2-4% of homes impractically expensive and needing a subsidy. Windstream's CEO testified to Congress 10% of their territory needed a subsidy. He estimated reaching all of Windstream's customers with broadband would cost $1.5B to $2B. That's an amazing change from their FCC filing the year before "it would cost $250 to $400 million to deploy broadband to reach the approximately 15 percent of its customers who currently do not have access to its broadband," and only partly explained by raising the floor to 4 megabits. Windstream filed objections to other carriers' proposals in at least four territories because Windstream offers some service. Sounds good.
Here are the grants they've asked for in different areas.
Broadband USA Application Directory Page 54 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5261 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream Arkansas, LLC Program: Broadband Initiatives Program (BIP) Proposed Project Area: Arkansas Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $7,285,202.00 $0.00 $2,428,401.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 4,900 homes and 339 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name Elkins AR 12 Cox Communications, Inc. Harrison 741 AR 6 Cox Communications, Inc. Mulberry AR 9 Cox Communications, Inc. Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 55 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5279 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream New York, Inc 26 Program: Broadband Initiatives Program (BIP) Proposed Project Area: New York, Pennsylvania Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $855,901.00 $0.00 $285,300.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 570 homes and 8 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name BEMUS POINT NY 5A Time Warner Cable CLYMER NY Time Warner Cable Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 56 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5281 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream New York, Inc 46 Program: Broadband Initiatives Program (BIP) Proposed Project Area: New York Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $463,295.00 $0.00 $154,431.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 1,500 homes and 29 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name CENTRAL SQUARE NY Time Warner Cable FULTON NY 5 Time Warner Cable Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 57 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5284 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream Western Reserve, Inc Program: Broadband Initiatives Program (BIP) Proposed Project Area: Ohio, West Virginia Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $2,377,148.00 $0.00 $792,383.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 4,964 homes and 475 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name Ashtabula Worth OH Time Warner Cable, Inc. Centerville OH Comcast Cable Chardon OH Time Warner Cable, Inc. Newbury OH Suddenlink Communications Time Warner Cable, Inc. Wyman OH Time Warner Cable, Inc Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 58 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5286 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream Ohio, Inc. Program: Broadband Initiatives Program (BIP) Proposed Project Area: Ohio Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $1,717,456.00 $0.00 $572,485.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 2,300 homes and 30 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name Delta OH Time Warner Cable, Inc. Kenton OH 2 Watch Communications Newark North OH 1C,1F Time Warner Cable, Inc. Newark North OH 1D Time Warner Cable, Inc. Newark North OH 1E Time Warner Cable, Inc. St. Paris OH 9A Time Warner Cable Inc. St. Paris OH 9C Time Warner Cable Inc St. Paris OH 9F 9G Time Warner Cable Inc Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 59 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5287 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Valor Telecommunications of Texas 200 Program: Broadband Initiatives Program (BIP) Proposed Project Area: Oklahoma Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $9,289,922.00 $0.00 $3,096,641.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 6,000 homes and 380 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name BROKEN ARROW EAST OK 3 9 Cox Communications, Inc. BROKEN ARROW SOUTH 3C 3D Cox Communications, Inc. COWETA OK 1 3 6 9 Cox Communications, Inc. MEEKER OK 6 Allegiance Communications STROUD OK 9A 9B Central Cellular, LLC dba COTC Connections Central Oklahoma Telephone Co. TECUMSEH OK 3 6 7 9 Allegiance Communications WAGONER OK 9 Suddenlink Communications Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 60 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5288 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream Oklahoma, LLC Program: Broadband Initiatives Program (BIP) Proposed Project Area: Oklahoma Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $915,651.00 $0.00 $305,217.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 960 homes and 22 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name PIKE CITY OK 6 Wichita Online, Inc. RATLIFF CITY OK 4 Wichita Online, Inc. VELMA OK 2 Wichita Online, Inc. Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 61 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5289 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Oklahoma Windstream, LLC Program: Broadband Initiatives Program (BIP) Proposed Project Area: Oklahoma Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $2,279,598.00 $0.00 $759,867.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 1,700 homes and 7 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 62 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5291 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream Pennsylvania, LLC Program: Broadband Initiatives Program (BIP) Proposed Project Area: Ohio, Pennsylvania Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $20,497,604.00 $0.00 $6,832,536.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 31,600 homes and 1,700 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name Albion PA Time Warner Cable, Inc. Brockway PA 3 6 Comcast Cable Brookville PA 3 Comcast Cable Brookville PA 9 Comcast Cable Coalport PA Comcast Cable Cochranton PA 4 Armstrong Utilities, Inc. Conneaut Lake PA Armstrong Utilities, Inc. Enon Valley PA Comcast Cable Fredonia PA Armstrong Utilities, Inc. Time Warner Cable, Inc. Fredonia PA 6 Time Warner Cable, Inc. Guys Mills PA Armstrong Utilities, Inc. Jamestown PA 10 Armstrong Utilities, Inc. Jamestown PA 4 Time Warner Cable, Inc. Kittanning PA Comcast Cable Linesville PA 3 12 Armstrong Utilities, Inc. Luthersburg PA Comcast Cable Meadville PA 4 7 Armstrong Utilities, Inc. Montgomery PA Comcast Cable New Alexandria PA 9 Comcast Cable New Alexandria PA 9C Comcast Cable Ridgway PA 2 Comcast Cable Ridgway PA 3 9 Comcast Cable Rockland PA 3 Comcast Cable Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 63 of 844 Applicant: WINDSTREAM CORPORATION Service Area PNR Company Name Rural Valley PA Comcast Cable Saegertown PA Armstrong Utilities, Inc. Sheakleyville PA Armstrong Utilities, Inc. Sigel PA Comcast Cable Strattanville PA Comcast Cable Summerville PA Comcast Cable Warriors Mark PA Comcast Cable getwireless.net Waynesburg PA Comcast Cable Worthington PA 10 Comcast Cable Worthington PA 11 Comcast Cable Worthington PA 5 Comcast Cable Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 64 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5292 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream South Carolina, LLC Program: Broadband Initiatives Program (BIP) Proposed Project Area: South Carolina Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $3,050,160.00 $0.00 $1,016,721.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 3,500 homes and 286 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name Cameron creston sc rt. 08d Time Warner Cable Kershaw 3M, 3P, 3T AT&T Lexington SC 04 Time Warner Cable St. Matthew rte 1,3,6,7 Time Warner Cable St. Matthews 05B, 05C, 06C AT&T Time Warner Cable Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 65 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5293 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Texas Windstream, Inc. Program: Broadband Initiatives Program (BIP) Proposed Project Area: Texas Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $4,565,983.00 $0.00 $1,521,994.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 4,900 homes and 190 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name Acton TX Charter Communications, Inc. Jab Wireless, Inc. Cresson TX Jab Wireless, Inc. Godley TX AT&T Jab Wireless, Inc. North Texas Broadband Grandview TX 3 Jab Wireless, Inc. TierOne Converged Networks Grandview TX 9 Jab Wireless, Inc. TierOne Converged Networks Kopperl TX Jab Wireless, Inc. Scurry TX Jab Wireless, Inc. Tolar TX 5,6,9 Jab Wireless, Inc. Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 66 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5294 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream Sugar Land, Inc. Program: Broadband Initiatives Program (BIP) Proposed Project Area: Texas Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $1,613,509.00 $0.00 $537,836.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 1,250 homes and 139 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name Waterwood Eastex Telephone Cooperative, Inc. Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 67 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5278 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Valor Telecommunications of Texas 310 Program: Broadband Initiatives Program (BIP) Proposed Project Area: New Mexico Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $2,273,847.00 $0.00 $757,950.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 4,000 homes and 56 businesses that otherwise may never enjoy the benefits of broadband Public Notice Response: Service Area PNR Company Name Ruidoso NM 2C Baja Broadband Ruidoso NM 2D Baja Broadband Truth or Consequences NM 2 Baja Broadband Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 68 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5277 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Valor Telecommunications of Texas 300 Program: Broadband Initiatives Program (BIP) Proposed Project Area: New Mexico Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $775,362.00 $0.00 $258,455.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 284 homes and 8 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name Hobbs Main NM 3A 3F Leaco Rural Telephone Cooperative Inc. Hobbs North NM 41 Leaco Rural Telephone Cooperative Inc. Hobbs North NM 41F Leaco Rural Telephone Cooperative Inc. Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 69 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5275 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream Nebraska, Inc Program: Broadband Initiatives Program (BIP) Proposed Project Area: Nebraska Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $5,459,907.00 $0.00 $1,819,969.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 4,700 homes and 400 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name ASHLAND NE 3 Charter Communications, Inc. Keyon Communications BEATRICE NE 1 Charter Communications inc EAGLE NE 6 9 Keyon Communications HASTINGS NE 9 Charter Communications, Inc Glenwood Telephone LINCOLN LN8A Keyon Communications LINCOLN LN8B 1A Keyon Communications LINCOLN LN8B 6A Keyon Communications LINCOLN LNC3 NE 9 Keyon Communications Time Warner Cable, Inc. MURRAY NE 9G Charter Communications, Inc. PLATTSMOUTH NE 1 Charter Communications inc YUTAN NE Keyon Communications Qwest Corporation Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 70 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5274 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream Concord Telephone, Inc Program: Broadband Initiatives Program (BIP) Proposed Project Area: North Carolina Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $5,567,273.00 $0.00 $1,855,758.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 5,000 homes and 226 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name Albemarle 01E Time Warner Cable albemarle 01F Time Warner Cable Albemarle 03D Time Warner Cable Albemarle 07B Time Warner Cable Albemarle 07C Time Warner Cable Albemarle 07D Time Warner Cable Albemarle 07E Time Warner Cable Albemarle 07F Time Warner Cable Albemarle 08G Time Warner Cable Albemarle RTE 3 & 4 Time Warner Cable Badin 07A Time Warner Cable Badin 08A Time Warner Cable China Grove 05A Time Warner Cable China Grove 08B Time Warner Cable China Grove routes 1,9 Time Warner Cable Concord 02G Time Warner Cable Concord 02H Time Warner Cable Concord 03G Time Warner Cable Concord 03K Time Warner Cable Concord 08J Time Warner Cable Concord 09Y Time Warner Cable Concord 09Z Time Warner Cable Concord route 3J, 3H Time Warner Cable Harrisburg 02C MULB Time Warner Cable Kannapolis 01D Time Warner Cable Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 71 of 844 Applicant: WINDSTREAM CORPORATION Service Area PNR Company Name Kannapolis 02E, F Time Warner Cable Kannapolis 05C Time Warner Cable Kannapolis 05D Time Warner Cable Kannapolis 07E Time Warner Cable Kannapolis 07F Time Warner Cable Kannapolis 08E Time Warner Cable Mt. Pleasant Rte 02C, 02D Time Warner Cable New London 03A Time Warner Cable New London 09F Time Warner Cable New London 09G Time Warner Cable New London Rte 01 Time Warner Cable New London Rte 09D, 09E Time Warner Cable Oakboro 06A Time Warner Cable Oakboro 07B Time Warner Cable Oakboro 07C Time Warner Cable Oakboro 09F Time Warner Cable Oakboro Rte 09D, 09E Time Warner Cable Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 72 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5262 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream Florida, Inc Program: Broadband Initiatives Program (BIP) Proposed Project Area: Florida, Georgia Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $38,288,349.00 $0.00 $12,762,784.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 36,000 homes and 4,400 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name ALACHUA FL. RT.15 Cox Communications, Inc. BRANFORD FL. Comcast Cable BROOKER FL RT6DA AT&T Cox Communications, Inc. CALLAHAN FL Comcast Cable CALLAHAN FL RT 6BA Comcast Cable CALLAHAN FL RT 6BB Comcast Cable CALLAHAN FL RT 7 AT&T Comcast Cable CALLAHAN FL RT9 Comcast Cable CRESCENT CITY FL AT&T Florahome Fl AT&T Comcast Cable HASTING FL Comcast Cable HIGH SPRINGS FL AT&T HILLARD FL Comcast Cable Interlachen FL Comcast Cable LIVE OAK FL Comcast Cable MCINTOSH FL AT&T MELROSE AT&T Comcast Cable ORANGE SPRINGS FL AT&T Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 73 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5263 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream Standard, LLC Program: Broadband Initiatives Program (BIP) Proposed Project Area: Georgia, North Carolina Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $6,940,375.00 $0.00 $2,313,458.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 9,000 homes and 710 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 74 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5264 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream Georgia, LLC Program: Broadband Initiatives Program (BIP) Proposed Project Area: Florida, Georgia Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $5,377,040.00 $0.00 $1,792,347.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 5,300 homes and 345 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name Cairo, GA rte 3 AT&T Mediacom Communications Corporation Homer, GA rte 3F,G AT&T Ila, GA rte 4B, 6 AT&T Union Point, GA rte 1,2,5,6,8 AT&T Winterville, GA rte 2 Charter Communications, INC Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 75 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5265 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream Georgia Communications, LLC Program: Broadband Initiatives Program (BIP) Proposed Project Area: Georgia Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $5,129,575.00 $0.00 $1,709,859.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 18,500 homes and 2,000 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name CANTON GA Comcast Cable DALTON MAIN GA RT3 Charter Communications, Inc. ELLAVILLE GA Mediacom Communications Coproration JASPER GA RT4F ETC Communications JASPER GA RT4J ETC Communications MANCHESTER GA AT&T Charter Communications, Inc. McRAE GA Mediacom Communications Coproration MILLEDGEVILLE GA Charter Communications, Inc. TOCCOA GA Northland Communications Corporation Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 76 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5266 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Georgia Windstream LLC Program: Broadband Initiatives Program (BIP) Proposed Project Area: Georgia, North Carolina Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $4,665,116.00 $0.00 $1,555,038.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 4,000 homes and 284 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name CLAYTON GA RT 2 H L Northland Communications Corporation DILLARD GA RT3 G C Northland Communications Corporation DILLARD GA RT4C 3F Northland Communications Corporation NORTHSIDE GA RT 4 Charter Communications, Inc THOMASTON GA RT 30 Charter Communications, Inc THOMASTON GA RT 9 AT&T Charter Communications, Inc. THOMASTON GA RT 9B Charter Communications, Inc Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 77 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5260 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream Alabama, LLC Program: Broadband Initiatives Program (BIP) Proposed Project Area: Alabama Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $264,087.00 $0.00 $88,029.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 150 homes that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 78 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5267 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream Georgia Telephone, LLC Program: Broadband Initiatives Program (BIP) Proposed Project Area: Georgia Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $1,327,595.00 $0.00 $442,532.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 3,200 homes and 500 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name Blakely GA Rt 3J South Georgia Regional Information Technology Auth BLAKELY GA RT3 South Georgia Regional Information Technology Auth OCHLOCKNEE GA RT 2 AT&T Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 79 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5269 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream Kentucky East, LLC 220 Program: Broadband Initiatives Program (BIP) Proposed Project Area: Kentucky Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $31,118,534.00 $0.00 $10,372,845.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 100,000 homes and 8,000 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name Barbourville 02B NewWave Barbourville 02H NewWave Barbourville 02I NewWave Barbourville Rte 02C,D,E NewWave Barbourville Rte 05 NewWave Bee Springs 02B,D,E.F.G Mediacom Communications Coproration Brodhead 01A,B NewWave East Bernstadt rte 4 NewWave Eubanks KY 01 02 03 and 04 NewWave FAUBUSH KY Duo County Telephone Cooperative London 02B NewWave London 02C, 02E, 02G, 02L NewWave London 02F, 02H NewWave London KY 01 and 02 NewWave Manchester 02 and 03 NewWave Manchester KY 01 and 05 NewWave MT Vernon 01 and 02 NewWave Time Warner Cable, Inc. MT Vernon 03 and 04 NewWave Oneida KY 2,3 NewWave Oneida KY 4 NewWave Oneida KY 5 NewWave Science Hill KY 1,2 NewWave Shopville, KY 2,3 NewWave Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 80 of 844 Applicant: WINDSTREAM CORPORATION Service Area PNR Company Name Smiths Grove KY 12 Insight Communications White Lily rte 2 NewWave Communications Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 81 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5270 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream Kentucky West, LLC Program: Broadband Initiatives Program (BIP) Proposed Project Area: Kentucky Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $951,445.00 $0.00 $317,149.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 3,000 homes that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name Shephardsville, KY rte 2&3 Insight Communications Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 82 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5271 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream Missouri, Inc. Program: Broadband Initiatives Program (BIP) Proposed Project Area: Arkansas, Missouri Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $10,328,319.00 $0.00 $3,442,774.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 4,300 homes and 200 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name Crocker MO 7 YHTI Internet Dixon MO 9 YHTI Internet Doniphan MO Boycom Cablevision Inc. Iberia MO 9 YHTI Internet Verona MO Suddenlink Communications Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 83 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5295 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Valor Telecommunications of Texas 400 Program: Broadband Initiatives Program (BIP) Proposed Project Area: Arkansas, Louisiana, Texas Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $36,267,244.00 $0.00 $12,089,081.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 145,000 homes and 18,700 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name Beckville TX 6 Eastex Telephone Cooperative, Inc. Brownfield TX Poka Lambro Telephone Cooperative Colmesneil TX 9 Eastex Telephone Cooperative, Inc. Daingerfield TX Suddenlink Communications Dalhart TX XIT Rural Telephone Cooperative, Inc. Fairfield TX 12 Northland Communications Corporation WiFi45 Fairfield TX 12H Northland Communications Corporation WiFi45 Fritch TX 2 Cable One, Inc. Fritch TX 9 Cable One, Inc. Gary TX AT&T Eastex Telephone Cooperative, Inc. Glen Rose TX Jab Wireless, Inc. Haskell TX 1B Santa Rosa Telephone Cooperative, inc. Haskell TX 1C Keyon Communications Santa Rosa Telephone Cooperative, Inc. Hooks TX Cable One, Inc. Hughes Springs TX 3 Suddenlink Communications Joaquin TX AT&T Karnack TX 3 Eastex Telephone Cooperative, Inc. Knox City TX Keyon Communications Santa Rosa Telephone Cooperative, Inc. Levelland TX Keyon Communications Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 84 of 844 Applicant: WINDSTREAM CORPORATION LSeevrevlilcaen dA TreXa PNR Company Name South Plains Telephone Cooperative Lone Star TX 3 Etex Telephone Cooperative, Inc. Lone Star TX 4 Suddenlink Communications Maud TX Cable One, Inc. New Boston TX Cable One, Inc. Redwater TX 1 Cable One, Inc. Redwater TX 1E Cable One, Inc. Redwater TX 9 Cable One, Inc. Riesel TX Time Warner Cable Simms TX Cable One, Inc. Texarkana TX 2 Cable One, Inc. Texarkana TX 2G Cable One, Inc. Texarkana TX 3 Cable One, Inc. Texarkana TX 3H Cable One, Inc. Southwest Arkansas Telephone Cooperative, Inc. Texarkana TX 3O Cable One, Inc. Southwest Arkansas Telephone Cooperative, Inc. Texarkana TX 6 Cable One, Inc. Texarkana TX 6AE Cable One, Inc. Texarkana TX 6AF Cable One, Inc. Texarkana TX 9 Cable One, Inc. Texarkana TX 9AA Cable One, Inc. Texarkana TX 9AB Cable One, Inc. Texarkana TX 9V Cable One, Inc. Texarkana West TX 6Z Cable One, Inc. Trinity TX Eastex Telephone Cooperative, Inc. Suddenlink Communications Walnut Springs TX Jab Wireless, Inc. Whitney Rt 6 Jab Wireless, Inc. Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 85 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5273 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream North Carolina, Inc Program: Broadband Initiatives Program (BIP) Proposed Project Area: North Carolina Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $536,590.00 $0.00 $178,864.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 1,100 homes and 250 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name Granite Quarry rte 9 AT&T Time Warner Cable Wadesboro 01B Time Warner Cable Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 86 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5268 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream Kentucky East, LLC 219 Program: Broadband Initiatives Program (BIP) Proposed Project Area: Kentucky, Tennessee Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $27,644,292.00 $0.00 $9,214,764.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 115,000 homes and 10,000 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name Berea, KY rte 2,4,5 Time Warner Cable, Inc. Burnside, KY NewWave Burnside, KY rte 1A NewWave Burnside, KY rte 1C NewWave Burnside, KY rte 1F NewWave Burnside, KY rte 3A NewWave Elizabethtown, KY rte 1 Comcast Cable Elizabethtown, KY rte 1P Comcast Cable Elizabethtown, KY rte 1Q Comcast Cable Glasgow, KY rte 1 South Central Rural Telephone Cooperative Corp. South Central Telcom, LLC Glasgow, KY rte 2B South Central Rural Telephone Cooperative Corp. South Central Telcom, LLC Glasgow, KY rte 2C South C entral Rural telephone Cooperative Corp. South Central Telcom, LLC Greenup, KY rte 3 Armstrong Utilities, Inc. West Virginia PCS Alliance LC dba NTELOS Hazard, KY NewWave Hazard, KY rte 3C NewWave Hazard, KY rte 3T, 3S NewWave Hazard, KY rte 4 NewWave Hazard, KY rte 4 I,J NewWave Hazard, KY rte 4C NewWave Hazard, KY rte 4G NewWave Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 87 of 844 Applicant: WINDSTREAM CORPORATION Service Area PNR Company Name Hustonville, KY rte 3 NewWave Lebanon, KY rte 2C,PT Time Warner Cable, Inc. Leitchfield, KY rte 13 Mediacom Communications Coproration Liberty, KY rte 2,3 NewWave Loretto, KY rte 1 Time Warner Cable, Inc. Meads, KY rte 2 West Virginia PCS Alliance LC dba NTELOS Monticello, KY rte 2,3,4 Norlight Inc. (also representing MWCTB) Morehead, KY rte 1, 2 Time Warner Cable, Inc. Morehead, KY rte 3 Time Warner Cable, Inc. Morehead, KY rte 3B, 3A, 4A Time Warner Cable, Inc. Morehead, KY rte 4 Time Warner Cable, Inc. Russell, KY rte 3 Time Warner Cable, Inc. Salt Lick, KY rte 2B Time Warner Cable, Inc. Somerset, KY rte 2 NewWave Somerset, KY rte 2M NewWave Communications South Hardin, KY rte 1,2,3,4,6 Mediacom Communications Coproration Tompkinsville, KY rte 14 Mediacom Communications Coproration Versailles, KY rte 1,2 Time Warner Cable, Inc. Broadband Initiatives Program (BIP) Broadband USA Application Directory Page 88 of 844 Applicant: WINDSTREAM CORPORATION Application ID: 5272 Contact: JAMES THOMAS MEISTER (501) 7485619 james.t.meister@windstream.com Project Title: Windstream Mississippi, LLC Program: Broadband Initiatives Program (BIP) Proposed Project Area: Mississippi Project Type: Last Mile Funding Round: Winter 2010 Broadband Initiatives Program Grant Request: Loan Request: Other Funding: $1,005,566.00 $0.00 $335,189.00 Status: Application Received Description: Windstream provides digital phone, highspeed Internet and highdefinition video and entertainment services to residential and business customers. In many of the rural areas Windstream serves, the cost of broadband deployment is prohibitive. The proposed project will allow Windstream to extend its broadband network to provide broadband to many currently unserved homes and businesses. Windstream will extend broadband service using the same architecture, equipment vendors, technologies, processes, and procedures that it uses to provide broadband service to over 1 million current customers. Windstream proposes to use industry standard ADSL2+ (Asynchronous Digital Subscriber Line) protocols that will allow customers to enjoy broadband at speeds of up to 12 Mpbs. The project will bring broadband to 1,150 homes and 24 businesses that otherwise may never enjoy the benefits of broadband. Public Notice Response: Service Area PNR Company Name FLORENCE MS 1 9 Cellular South Comcast Cable FLORENCE MS 1D Cellular South Comcast Cable PRENTISS Cellular South
Some highlights from Windstream filings
http://fjallfoss.fcc.gov/ecfs/document/view.action?id=7020244628
Dividend payments are central to the mid-sized carrier’s business model. A mid-sized carrier’s stock is similar to a bond. Stock prices of these carriers, which are facing declining revenues, typically do not appreciate. Instead, mid-sized carriers reward equity investors by paying regular dividends. Without these dividends, investors would have little reason to hold onto their stock. If investors decide to sell their stock because of concerns about their investment, a mid-sized carrier’s share price will decline, making it even more difficult for the carriers to obtain capital from the debt markets, which have been for all intents and purposes “closed” due to the extreme volatility in recent months.
A common misconception is that mid-sized price cap carriers, like Windstream, are funded largely by federal USF support. That simply is not the case. The outdated federal USF mechanisms provide a disproportionately large amount of support to small and mid-sized rate-of-return carriers, but do not provide adequate support to the mid-sized price cap carriers that serve high-cost rural areas of the Nation. Due to averaging of costs and inconsistencies between USF support calculations and rate regulations, the USF system fails to target support directly to the high cost areas where it is actually needed. Consequently, Windstream – with 27 percent of its exchanges comprised of 500 access lines or less – receives less than 1 percent of its total annual revenues from high-cost loop and model support, and less than 3 percent of its revenues from all federal high-cost support combined.
I sent the article to them and RUS for factchecking because $238M of government spending is involved. With the article in hand, Windstream choose to provide the figure for "unserved," 160-190K. That implies the cost of reaching the unserved is about $2K/home, high but not out of the ballpark for rural territories. I therefore recommend the project be funded after a careful review of the budget.
In particular, I urge RUS and Windstream to go over the maps and find a way to stretch the $238M to reach 96-98% of Windstream homes, not 93-94%. That could be done by re-allocating part of the money from currently served territories to the unserved. In going over the details with me, Schunemaker made clear he understands the ways DSL can be extended further, including mini-DSLAMs, small pedestals, pole-mounting, and bonding. With guidance from RUS, I think he can reach more homes.
Alternately, I hope RUS goes closely over the proposal with an eye to saving public money. The rules specify that RUS should give priority to projects asking less than 75% grants, a powerful lever to negotiate the grant percentage down. (This is even more important in the larger Qwest application. Both are reasonable projects, but according to the publicly available data many of the subsidies could be reduced 30-60% and the companies would still have a good deal.)
The odds are good that where Windstream would upgrade the areas where they have competition even without funds, so Congress was right to make that a low priority. In practice, the fiber and other investments for the unserved will lower Windstream's cost of improving service in their current areas, making upgrades even more likely. |