The Federal Communications Commission has approved $33 million to improve access to broadband internet in 21 Michigan counties.
The approval is expected to bring internet to 21,073 Michigan homes in rural and underserved areas.
Mark Wigfield is a spokesperson for the FCC.
“We had a pot of money and we said the carriers that can provide the best service for the least cost will get these subsidies for ten years,” he said.
Wigfield said carriers will have six years to build out the networks to provide broadband access to rural residents.
“They need to build out 40% of the networks in three years and then 20% thereafter so they will be completely built out in six years.”
Carriers are required to provide internet service to rural residents at rates comparable to urban areas.
“What these subsidies do is reduce the price of broadband for consumers because if a population is sparse there are very few people to pay for the network,” Wigfield said. “So the subsidies bring the cost down so carriers can invest their own money and consumers can get a decent price.”
Providers include Midwest Energy Cooperative and Crystal Automation Systems.
The counties that will benefit from the subsidies are Berrien, Cass, Clare, Clinton, Eaton, Ionia, Kalamazoo, Kent, Lake, Lenawee, Mason, Mecosta, Missaukee, Montcalm, Muskegon, Newaygo, Oceana, Osceola, St. Joseph, Van Buren, and Wexford.