KeyOn Communications Holdings, Inc. filed applications for $150 million of Federal Broadband Stimulus Funds under the American Recovery and Reinvestment Act of 2009. KeyOn, already one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, could be a major player on Wall Street in the near future if funds are granted. KeyOnâ€™s existing wireless networks currently cover over 2.5 million people, but with this grant, the company can expand to cover as many as 16 states and provide wireless broadband access to 6.5 million customers.
Commenting on the effect these funds could have on KeyOn, Jonathan Snyder who serves as the company President and CEO stated, â€œThe management, employees, and key consultants of KeyOn have spent the past 3 months focusing on and refining our plan to submit these applications under the BIP for rural broadband deployment. As KeyOn is the largest and most experienced provider of wireless broadband networks specifically serving rural markets, I believe we are strongly positioned to extend the reach of broadband to the neediest areas in the country â€“ namely the rural markets.â€
He added, â€œThe goals of the Broadband Initiatives Program are aimed at enhancing rural Americaâ€™s productivity and economic competitiveness by increasing broadband adoption while creating sustainable jobs. These are two goals that our plan addresses head-on and incorporates other tenets of the plan by promoting the use of broadband to a variety of public service organizations, such as schools and colleges, libraries, medical and health care centers and community support organizations. Our network design takes advantage of the latest fourth generation (4G) WiMAX technology and the newly regulated 3.65GHz spectrum, for which we hold a nationwide license.â€
One of the objectives of President Obamaâ€™s administration is to expand broadband access to rural areas and KeyOn is the perfect fit for this agenda. With the way broadband is expanding and with a dynamic stimulus package in place, investorâ€™s may want to key-in on KeyOn before it takes off.