SDN to make $4 million in broadband expansion thanks to new federal funding

May 12, 2020

SDN Communications will be starting $4.4 million in improvements to provide broadband service in unserved and underserved communities thanks to new USDA funding.

The new connectivity will be provided for 308 residents and businesses in the Black Hills communities of Nemo, Rochford and Silver City as part of the ReConnect pilot program.

It’s a combination of $3.3 million in USDA funding and $1.1 million from SDN.

“The need for rural broadband has never been more apparent than it is now – as our nation manages the coronavirus national emergency. Access to telehealth services, remote learning for school children and remote business operations all require access to broadband,” Agriculture Secretary Sonny Perdue said.

“I am so proud of our rural communities who have been working day in and day out, just like they always do, producing the food and fiber America depends on. We need them more than ever during these trying times and expanding access to this critical infrastructure will help ensure rural America prospers for years to come.”

The project will construct 45 miles of fiber infrastructure and extend broadband availability to 292 residents, two farms and 14 businesses in Pennington and Lawrence counties.

“Those granite hills surrounding Nemo, Rochford and Silver City are hard to penetrate,” said SDN Communications CEO Mark Shlanta. “In fact, burying fiber will cost more than $65,000 a mile. It is an expensive project that would not pencil out without this public-private partnership.”

Although expensive, reliable connectivity is necessary for the residents and tourists, Shlanta said. Without fiber optics, Black Hills wireless telephone and data service are also unreliable. This project could help.

“Emergency service providers have told me about bad accidents – cars, ATVs, snowmobiles – where victims and emergency service providers have no cellphone service. We hope this project will change that and improve public safety.”

SDN has also submitted a 2020 ReConnect grant application to expand from the current award.

“The Black Hills have always been on SDN’s build list. I do not live there, but I am a South Dakotan who enjoys spending time there,” Shlanta said. “I believe this project and future expansions will make the region an even bigger draw.”

SDN is owned by 17 South Dakota independent telecommunications companies – cooperatives, family, municipal and tribal-owned companies.

In March 2018, Congress provided $600 million to USDA to expand broadband infrastructure and services in rural America. The program, called ReConnect, included how the loans and grants will be awarded to help build broadband infrastructure in rural America. USDA received 146 applications between May 31, 2019, and July 12, 2019, requesting $1.4 billion in funding across all three ReConnect program funding products: 100 percent loan, 100 percent grant and loan-grant combinations.

On April 20,  USDA announced the department had received 172 applications for $1.57 billion in round two of the ReConnect program. The second round will enable USDA to implement innovative new solutions to rural connectivity by leveraging financial options with partners and continue the success of the first round of funding. The application window for round two closed April 15. USDA received 11 round one ReConnect applications that are eligible for the $100 million Congress allocated to the program through the CARES Act.

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SDN to make $4 million in broadband expansion thanks to new federal funding

SDN Communications will be starting $4.4 million in improvements to provide broadband service in unserved and underserved communities thanks to new USDA funding.

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