ION/DANC Partnership Receives $39.7 Million and Slic Network Solutions Receives $5.4 Million to Extend High-Speed Internet to Rural Areas
by New York State Office for Technology
ALBANY, NY (12/18/2009)(readMedia)-- The New York State Office of the Chief Information Officer, the Office for Technology, and the New York State Foundation for Science, Technology and Innovation today announced two broadband development projects received $44 million in federal stimulus monies. New York State was one of two states to receive multiple awards and received the largest portion of monies awarded at this time.
"I am very pleased that two broadband initiatives in New York State were prioritized among the hundreds of broadband grants submitted to receive federal stimulus dollars," said Governor Paterson. "Ensuring every New Yorker has access to high-speed Internet service is paramount to economic development in New York State. The economic, educational, and social benefits are enormous and we want to ensure New Yorkers in every corner of our state have access to broadband service to be full participants in this Digital Age."
A partnership between ION, a for-profit company based in Albany, and the Development Authority of the North Country (DANC), a public benefit corporation, will receive $39.7 million in federal funds and will self-fund an additional $4.95 million and receive a New York State Innovation Economy Matching Grant for $4.95 million for a total project cost of $49.6 million.
ION and DANC will develop a regional broadband network to connect more than 100 community institutions, including libraries, state and community colleges, and health clinics. The ION/DANC project will enable last-mile connections to 250,000 households and 38,000 businesses. Leveraging existing broadband networks maintained by ION and DANC will help facilitate service to a majority of rural areas in New York including communities in the North Country, Mohawk Valley, Finger Lakes Region and Western New York, as well as parts of Pennsylvania and Vermont.
In addition, Slic Network Solutions, a wholly-owned subsidiary of Nicholville Telephone, will receive $5.4 million in federal funds to build a fiber optic network in rural Franklin County. With the $4.3 million federal grant, and a federal loan of $1.1 million, Slic Network Solutions will extend a 136-mile fiber optic network reaching into five towns in rural Franklin County. This all-fiber network will deliver broadband voice, and IPTV services to remote rural areas. The network will offer service to more than 6,500 locations.
Dr. Melodie Mayberry-Stewart, New York State Chief Information Officer and Director of the Office for Technology and Chair of the New York State Broadband Development and Deployment Council said, "On behalf of the Broadband Council, I want to extend our congratulations to the ION/DANC partnership and to Slic Network Solutions for their excellent proposals. We look forward to working together to fulfill New York's broadband strategy. Together we will ensure all areas of New York State, urban and rural, unserved and underserved, enjoy the richness of living in a connected world."
Edward Reinfurt, Executive Director of the New York State Foundation for Science, Technology and Innovation (NYSTAR), said, "As a member of the state's broadband project review team, I can attest to the many benefits associated with this project. It received one of the highest rankings in the review and we appreciate the NTIA giving the states the opportunity to provide input into the selection process. This will provide the type of connectivity that will propel economic in the North Country, Central New York and the Southern Tier."
As New York State works to enhance and grow a new economy based on knowledge, technology and innovation, it has recognized the importance of securing federal stimulus funds. New York recognizes that a commitment of state matching funds can greatly increase the chance of a proposal being selected for federal funding. These two broadband awards will significantly impact regional high tech economic development by providing a foundation of a robust communications assets to regions of the state that have not had this level of connectivity before. The Governor's Innovation Matching Grants Program, administered by NYSTAR, will provide a 10% match which will allow these companies to leverage additional dollars and enable them to build out networks in the shortest timeframe possible.
The goal of the New York State Innovation Economy Matching Grants Program is to provide assistance through the commitment of matching funds to New York State research institutions, businesses and municipalities in attracting new federal, private foundation or industry dollars to New York.
Yesterday, Vice President Joe Biden announced $183 million for 18 broadband projects in 17 states that will be used to build broadband networks in underserved communities across the nation. The funding is part of the $7.2 billion set aside for broadband in President Obama's $787 billion economic recovery program earlier this year.
In September 2009, New York State government agencies and non-government organizations applied for federal stimulus grants to make broadband service universally available in unserved and underserved communities across the state. Grant applications were submitted to the U.S. Department of Commerce National Telecommunications and Information Administration (NTIA), and the U. S. Department of Agriculture Rural Utilities Service for broadband funding available through the American Recovery and Reinvestment Act (ARRA). Projects intended to provide greater Internet access to people throughout the state, increase digital literacy programs, and spur economic development. The projects demonstrate innovative approaches to bridge the digital divide and enhance New York's broadband capacity in communities, and will benefit economic and community development efforts, improve public safety communications, expand online government services, provide new educational opportunities and leverage the state's university research and development capacity.
Additional Resources
Vice President Joe Biden; White House Press Release:
http://www.whitehouse.gov/the-press-office/vice-president-biden-kicks-72-billion-recovery-act-broadband-program
New York State Universal Broadband Strategic Roadmap:
http://www.nysbroadband.ny.gov/assets/documents/Final_Broadband_Strategy_June2009.pdf
NYS Innovation Economy Matching Grants Program:
http://www.nystar.state.ny.us/matching/default.htm
Broadband USA:
http://broadbandusa.sc.egov.usda.gov/
ION website:
http://www.i-o-n.com/index.html
DANC website:
http://www.danc.org/index.html
Slic Network Solutions:
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