Recovery Act: TowerStream Eyes New Markets

WiMax operator Towerstream Corp. (Nasdaq: TWER) has applied for up to $120 million in broadband stimulus funds from the Recovery Act and plans to use the money to provide wireless broadband to underserved businesses in nine existing markets and eight new cities in the U.S.

The Middletown, R.I.-based operator has been vocal about the importance of the broadband stimulus funds since they were unveiled with company CEO Jeff Thompson repeatedly blogging on the matter.

TowerStream now says it is applying for $100 million to $120 million under the Broadband Technologies Initiative Program (BTOP). The money will be used to provide "for areas in and around major cities that don’t have adequate Internet access."

A spokeswoman reveals to Unstrung that TowerStream is targeting nine new cities if it gets the money:

• Atlanta
• Denver
• Detroit
• Houston
• Minneapolis
• Philadelphia
• Phoenix
• San Diego
  
  

The company has also applied for BTOP funds in its existing markets: Boston, Chicago, Dallas, Los Angeles, Miami, New York, San Francisco and Seattle.

TowerStream's Thompson claims that if and when the operator gets the money it will help to create "thousands" of new jobs.

— Dan Jones, Site Editor, Unstrung