Verizon turns its back on rural broadband subsidies

by Steve Blum • , , ,

Verizon won’t be taking part in the Federal Communications Commission’s Connect America Fund program, aimed at improving broadband service in rural areas. Today was the deadline for major telcos to notify the FCC that they were going to participate, and Verizon’s answer was no. The company did put a marker down on money allocated to California and Texas, though, on behalf of Frontier Communications, which is in the process of buying Verizon’s wireline systems in those states. If that purchase goes through, Frontier would pick up subsidies earmarked for Verizon worth $32 million a year for six years in California, and $17 million in Texas.