CenturyLink receives USD54 million FCC grant
This year, CenturyLink Inc, a primary telecommunications service provider, would receive USD54 million from the Connect America Fund of the Federal Communications Commission (FCC). The amount would finance the broadband services in suburban homes of high-cost areas.
The USD54 million funding was the second portfolio of funds granted under the CAF1 phase of FCC. CenturyLink would also add the same amount from its own capital to back up FCC's cause. Three months ago, CenturyLink was said to be eligible to accept at least USD90 million from FCC's CAF this year.
Over USD108 million would be invested by CenturyLink within the next three years to install high speed internet to almost 92,000 rural clients. The company aimed to reach a download speed of 4Mbps and a 1Mbps upload speed in 33 of the 37 states where CenturyLink currently offers household internet services.
The financial grant from CAF would represent a relevant source of system access revenues for CenturyLink. The corporation already accepted around USD35 million in CAF phase I, used to set up a broadband services to 45,000 homes in underserved regions.