RUSHVILLE, Ind., Aug. 9, 2010 (GLOBE NEWSWIRE) -- Omnicity Corp (OTCBB:OMCY), the Midwest's largest and fastest growing fixed wireless broadband service provider announced today it recently received a Second Round Review letter ("The Letter") from the US Dept of Agriculture's Rural Utilities Service ("RUS") regarding its $21m in broadband stimulus applications. This Letter pertained to two separate stimulus applications ("the Applications") that Omnicity submitted to the RUS in response to the Administration's stated objective to award $7 billion in grants and low interest loans to businesses to enable the creation of jobs and the development of broadband access to all American citizens. The Letter allows Omnicity to submit supplemental information to address specific and limited adjustments to Omnicity's Round Two Broadband Initiatives Program (BIP) Infrastructure Applications. Omnicity submitted separate applications for each of these "last-mile" projects that total $21m in funding.
According to Greg Jarman, CEO of Omnicity, "Over the past seven years, Omnicity has demonstrated its ability to successfully design, build and operate wireless broadband networks in rural communities throughout Indiana and Ohio. We caution that this Letter should not be viewed as an approval of our Applications, however our experience makes Omnicity a leading candidate to receive such funding." Mr. Jarman added, "Based on previously disclosed RUS timelines Omnicity can expect to know the outcome of these Applications by the end of September 2010."
These projects include:
Omnicity Northern Indiana Rural Broadband Project
Omnicity will provide broadband internet to 25 rural, underserved counties in central and northern Indiana. Using fixed base wireless WiMax technology, Omnicity will provide high speed internet access at a significantly lower cost and more expeditiously than wire based systems such as DSL or fiber. Omnicity will target underserved communities and their critical public and private institutions. This project will provide service availability to over 400,000 households (1.1 million individuals), over 40,000 businesses, and 4,000 educational and government facilities, many of which are currently limited to dialup or satellite internet as their only internet options.
This project is expected to create 85 jobs in the first two years during implementation and initial growth, with an additional 20 jobs created in year three through five as the networks expands.
Omnicity Columbiana County Port Authority Rural Broadband Project
Omnicity will provide broadband internet to 4 rural, unserved and underserved Appalachian counties in eastern Ohio (Columbiana, Carroll, Harrison and Jefferson). Using fixed base wireless technology, Omnicity will provide high speed internet access at a significantly lower cost and more expeditiously than wire based systems. Omnicity has partnered with the Columbiana County Port Authority to target unserved and underserved communities and their critical public and private institutions. This project will provide service availability to over 48,000 households (over 14,900 of which are currently unserved and without high-speed access); 5,700 businesses; and over 800 educational and government facilities, many of which are currently limited to dialup or satellite internet as their only internet options.
About Omnicity:
Omnicity Corp is a public company based in Indiana providing broadband access, including advanced services of voice, video and data, in un-served and underserved small and rural markets and is planning to be the premier consolidator of rural market broadband nationwide. Omnicity's strategy is to provide a total broadband solution and continue rapid growth through acquisitions of networks and subscribers, organic growth and continue to partner with Rural Electric Membership Co-ops and Rural Telephone Companies. Omnicity has an experienced broadband operations team with extensive wireless broadband/ISP expertise as well as the expertise to consolidate large numbers of networks and subscribers through its roll-up strategy.
Forward-looking statements, made pursuant to safe harbor provisions of the PSLR Act of 1995, inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. By making these forward-looking statements, the Company undertakes no obligation to update these statements for changes after the date of this release.