StimulatingBroadband.com 03/30/2010 San Francisco - KeyOn Communications Holdings, Inc. (OTCBB: KEYO), the rural broadband fixed wireless service provider that for a time achieved a sky high pop in its 2009 stock value, partially as a result of the aggressive highlighting of its broadband stimulus applications in the first round of the federal program, this morning announced that it applied for $360 million in funding in the second and final round of the program.
The $360 million application figure is a 237% increase in the total dollar value of funds applied for by the wireless operator, over the figure of $151.816 million applied for in Round I of the federal initiative.
According to the company's press release issued today, at 8:30 AM (ET), the firm applied for funding to the Broadband Initiatives Program (BIP) of the Rural Utilities Service (RUS) of the U.S. Department of Agriculture (USDA). KeyOn similarly applied only to RUS for funds in Round I, as it targeted rural markets in 11 states.
KeyOn's Jonathan Snyder, President and CEO of the firm stated in today's release, “Over the past few months, KeyOn’s management team has continued to focus on ARRA, as it represents a significant growth opportunity for our company.” The company statement went on to say that if "successful in its applications, KeyOn plans to contribute up to approximately $163 million of outside capital to some of the smallest communities in the United States to ensure the sustainability of its projects."
In its press statement, the company did not disclose which specific markets it had submitted its applications for by yesterday's RUS application deadline of 10:00 PM (ET). KEYO's statement did however say that if it won all of the funding applied for, its "WiMAX networks could potentially expand to cover as many as 22 states and provide wireless broadband access to as many as 8.2 million people."
As we reported on March 4, the firm was not awarded any of the Round I funds it applied for in 11 states.
According to an article by Ben Steverman in the November 3, 2009 issue of BusinessWeek, the significant appreciation in share value achieved by the firm last year was in large measure attributable to the aggressive marketing tactics of the company, as especially seen in its trumpeting of its broadband stimulus applications in funding Round I of the program.