Federal officials reject Bresnan's $70 million dollar expansion

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By The Associated Press

Story Published: Feb 7, 2010 at 4:45 PM MDT

Story Updated: Feb 7, 2010 at 4:45 PM MDT

HELENA - Federal officials have rejected a proposal by Bresnan Communications to use $70 million in federal stimulus money to expand high-speed Internet services to the state's Indian reservations.

The Bresnan proposal had been criticized by small rural telephone companies and cooperatives, saying it would duplicate long-distance fiber-optic lines that already exist. They and the Public Service Commission said it would not increase critical "last-mile" high-speed lines that go directly to homes and businesses.

Gov. Brian Schweitzer and Indian tribes had supported Bresnan's proposal, saying it eventually would lead to faster, cheaper high-speed Internet service to many rural areas. Bresnan and the 1,400 other applicants nationwide that were rejected last week were encouraged to apply for a second round of funding. Spokesman Shawn Beqaj says the company hasn't decided if it will.

Beqaj says Bresnan's application was rejected because it did not offer a 20% match of its own funds to help finance the project. It offered $6 million.

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