Small Rural Internet Provider ``USA Choice Internet'' Prevails against ``Goliaths'' in FCC Broadband Spectrum Auction
700 Mhz Wireless Spectrum Could Bring Broadband to Underserved,
Economically-depressed Pennsylvania Areas
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.
For USA Choice Internet Services
Dotty Diemer, 562-212-6014
Copyright Business Wire 2008
