Graves Aims To Increase Broadband's Reach

Press Release

Graves Aims To Increase Broadband's Reach

U.S. Congressman Sam Graves introduced a bill today designed to extend the reach of broadband into the rural areas. The bill would ease application requirements for the Rural Utility Service (RUS) program, the current requirements hamper companies from accessing available loans. In 2004, only 28% of all available RUS funds were used and only five percent in 2005.

"No matter where you live, broadband can bring a world of opportunities and possibilities to your door step," said Graves. "It is imperative to our rural way of life that we push broadband out to every corner of Missouri. Where you live should not limit your opportunities for education, commerce or medical care."

Graves' bill, H.R. 2569, would eliminate market surveys for applicants proposing to serve the most rural portions of the country. The process is costly and makes it cost prohibitive for many smaller telecommunications companies to apply. The bill would also reduce the amount of equity a company would need to be eligible for a loan to service a rural community and gives the USDA the ability to modify equity requirements depending on a company's financial stability. The proposed changes would simplify the application process resulting in more approved loans and further the deployment of broadband into our rural communities.

"This valuable program is underused because of bureaucratic red tape," said Bob Williams, Vice President for American Broadband Inc. and 6th District resident. "I applaud Congressman Graves for recognizing a significant problem and working to fix it."

"Many citizens in rural America's small communities do not have broadband access for a reasonable cost," said Raymond Henagan, CEO of Rock Port Telephone Company. "It should be available to everyone, no matter where they are located, at a reasonable rate. We support legislation that would further broadband deployment into rural areas and feel that it should be funded to give everyone equal access to the internet at comparable costs."
The bill will be referred to both the Agriculture and Energy and Commerce committees. Graves may seek to include the bill as a part of the 2007 Farm bill. Graves announced his intention last month to seek greater access to broadband for rural areas as a part of his economic development plan.

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