14 Iowa broadband providers receive remainder of allocated CARES Act funds

(The Center Square) – Fourteen Iowa broadband providers received $15.5 million in Empower Rural Iowa broadband grants through federal Coronavirus Aid, Relief and Economic Security (CARES) Act funds.

Gov. Kim Reynolds’ office announced the disbursements on Monday, March 22. The money will support projects impacting more than 2,800 homes, schools and businesses in 21 Iowa counties, according to a news release from her office.

“The $15 million is the remainder of the $50 million in CARES funding Governor Reynolds designated for broadband grants from a previous round of funding,” the news release stated. There were more than 42 providers who applied for funding.

“All the broadband grants from this latest round are going to areas that are currently unserved with broadband connectivity,” Office of the Chief Information Officer Public Information Officer/Legislative Liaison Gloria Van Rees told The Center Square in an emailed statement. “The Covid-19 pandemic highlighted the struggles faced by areas unserved by broadband. This has implications as it relates to distance learning, telework and telehealth. The grants are meant to incentivize providers to build out broadband infrastructure in unserved areas.”

Applications from Fremont and Allamakee counties “scored highest on application responses in the evaluations process,” Van Rees said. The counties are among the areas highlighted as “targeted service areas” in the Iowa Broadband Availability map.

“The application process was one of the most competitive we have seen and speaks volumes to the demand for reliable broadband access throughout Iowa,” Van Rees said.

IAMO Communications received a grant of $1.1 million for its East College Springs fiber to the premises project in Page County, which has a total projected cost of $1.5 million, according to its grant application. CEO and General Manager Tim Toepfer told The Center Square in a phone interview that through the grant, his company will bring fiber optics to about 45 homes in southwest Iowa. Most of the area is “high-cost delivery,” on account of the distances between the homes and current infrastructure, he said.

With the fiber optics service, the residents will gain access to telehealth services. He said that’s crucial for the area since it has an aging population that would benefit from avoiding travel and any potential COVID-19 exposure.

Stratford Mutual Telephone Company received $1.5 million for its roughly $2 million fiber internet infrastructure project serving Story, Boone, Hamilton and Webster counties .

“The broadband needs within the home have seen unprecedented growth within the last decade. I expect this trend to continue,” General Manager Steve Frey told The Center Square in an emailed statement. “Especially with telecommuting, telehealth, and online schooling all becoming a larger part of our life. The required investment to build a future proof network is extraordinary, especially in rural areas, but is necessary in order to provide the necessary opportunities to future generations of Iowans.”

USA Communications received $1.7 million toward a $2.3 million fiber internet infrastructure project in Benton, Iowa and Linn counties.

“There’s winners and losers in this and there’s only so much [funding] to go around, and that’s the hard part,” General Manager Curt Eldred told The Center Square in a phone interview. “I know there are areas out there just like the ones we’re going to that need it just as bad. … Broadband is no longer a want. It’s a need, at least from an education and telemedicine perspective – let alone economic development.”

The projects must be completed by Dec. 1, 2021, the Office of the Chief Information Officer noted.

Reynolds said in the news release that Iowa must have “universal broadband access to compete and succeed in the 21st century.” She said she is working with the legislature for “significant funding over the next three years that will ensure access for all Iowans by 2025.”

HF 848, a bill on broadband service grants, was placed on the House of Representatives’ Appropriations calendar on March 22, after the Appropriations Committee passed HF 796, its predecessor, on March 18.

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