Q&A: Windstream weighs broadband stimulus involvement : Fuzzy clauses, strict rules could hinder participation

Of the dozens of service providers expected to apply for broadband stimulus funds, Windstream Corp. (WIN) stands out as a frontrunner. The rural LEC has been "working diligently with the various government agencies to position us for economic stimulus grants allocated toward broadband expansion," CEO Jeff Gardner said in a first-quarter earnings call. Windstream's interest in the government money makes sense, as 400,000 of its customers still don't have broadband because they live in such hard-to-reach areas.

This week, the Rural Utilities Service (RUS) started accepting applications for the $2.5 billion in loans it's overseeing, and the National Telecommunications & Information Administration (NTIA) is preparing for the anticipated flood of requests for the $4.7 billion in grants it’s handling. The idea of grants appeals much more to Windstream; the loans have to be repaid and it's hard to justify buildouts in remote regions if there's no guarantee of return on investment. But because Windstream is a rural LEC that's received RUS financing before, it must first apply through that agency...