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| [March 26, 2008] |
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Small Rural Internet Provider ``USA Choice Internet'' Prevails against ``Goliaths'' in FCC Broadband Spectrum Auction
OIL CITY, Pa. --(Business Wire)-- In true "David vs. Goliath" fashion and after more than 260 auction rounds, according to information released by the Federal Communications Commission (FCC) last Thursday, USA Choice Internet Services is the provisional winner out of a host of incumbent and significantly larger bidders, to acquire 700 MHz spectrum rights for the greater Crawford Cellular Market area (CMA) as part of the largest airwaves auction ever held by the FCC. Following licensing of the spectrum, the USA Choice acquisition should allow the company to provide a full suite of broadband services to a four county area, including Crawford, Venango, Warren and Forest, communities which to date have had limited access to high-speed Internet and other related services. Announcing auction winners on March 20, 2008, the FCC reiterated its commitment to serving rural areas, yet, according to the documents released by the agency, the lion's share of the $19.592 billion sold went to market-dominant Verizon Wireless, AT&T and other consortiums of large investors.
"This is a triumph for the underdog," stated Ray Schwabenbauer, managing partner of USA Choice. "For years, the majority of our residents and many of our local businesses have had virtually no access to high-speed broadband services and have been largely overlooked by the big providers. This lack of high-speed Internet and the suite of services that accompanies such access, like low cost telephone service and mobile Internet access that most people take for granted in larger communities, has had a huge impact on our local area's ability to grow and prosper economically. This lack of access also hinders our communities' ability to offer critical public safety services that depend on broadband, such as mobile police, ambulance and emergency preparedness services."
Schwabenbauer added, "Against all odds, USA Choice will be able to offer residents and local businesses an array of broadband services never before available to them. This entire region and our young company owe a debt of gratitude to our principal partner, Brian Fielding, who shared our vision and made it possible for us to compete in the FCC's 700 MHz band auction."
The bid for PA-1 Crawford CMA spectrum was one of the most hotly contested of any during the FCC Auction 73, and was not concluded until bidding for this market ending in the 234th round, according to FCC releases. Following the issuance of its Crawford license, USA Choice will be in the position to offer rural customers low cost telephone (VOiP) service, high-speed Internet, as well as mobile Internet and cellular-like access. Industry consultants advise that owners of spectrum licenses could begin build-out on this spectrum quickly, enabling spectrum winners to be in a position to offer expanded broadband wireless services within the next 12-18 months. The FCC documents show that USA Choice also bid on the Sharon, PA CMA spectrum, but was eventually outbid by a group called Triad700 LLC.
In compliance with the FCC's anti-collusion period quiet rules, USA Choice cannot comment any further on the Auction or the company's plans until its purchase is confirmed by the FCC on April 3, 2008.
A locally-owned and operated business, USA Choice was started in 1995 by Ray Schwabenbauer, Michael Phillips, Fred Cherico and Brian Fielding, who made it their mission to bring broadband wireless and high-speed dial-up Internet access to the underserved economic areas surrounding Oil City, Pennsylvania, the city where USA Choice is based. Recognizing that harder-to-reach rural areas are often overlooked by the larger Internet providers, USA Choice stands out in its commitment to providing high quality, low-cost, full spectrum Internet access to all of the communities in Northwest and Central Pennsylvania. USA Choice provides free, local technical support to all its customers, with no limits on how many times a customer may call. The company currently offers dial-up Internet access under the USA Choice name in 25 Pennsylvania counties.
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