Six bipartisan members of the committee sent a letter to Rural Utilities Service Administrator Jonathan Adelstein requesting the firm’s complete loan application and any documents related to the decision to approve it. The current balance of Open Range’s loan — the largest made to rural broadband providers between 2002 and 2008 — is $73.5 million.

The letter also notes refers to concerns from the Agriculture Department’s inspector general about the oversight of broadband loan programs in light of the fact that $340 million had been paid out despite “incomplete applications, loans that defaulted, and grant funds used for inappropriate purposes.”

“Open Range’s bankruptcy potentially puts $73.5 million of taxpayer money at risk,” wrote committee Chairman Fred Upton (R-Mich.), ranking member Henry Waxman (D-Calif.) and others. “In light of Open Range’s bankruptcy, the Energy and Commerce Committee requests a bipartisan briefing to explain the RUS application review process for the Open Range loan and the oversight RUS conducted to ensure taxpayer funds were used as intended. At the briefing provided by you or your staff, please be prepared to provide additional information about the total number and amount of broadband loans provide pursuant to the 2002 and 2008 Farm Bills, whether any of the recipient companies have experienced or are experiencing financial difficulties, and the oversight RUS conducts to monitor their progress”

If any improprieties are revealed, it could raise concern about the awarding of broadband stimulus funds.

As the New Edge first reported back in 2009, Open Range obtained a $267-million loan from the U.S. Department of Agriculture’s Rural Development Utilities Program (from the traditional telecom program, not a stimulus loan) to deliver portable and eventually mobile voice and Internet services. The company also received another $100 million in private financing from an arm of J.P. Morgan Chase. When it filed for bankruptcy protection on October 5, Open Range listed $114 million in total assets and $110 million in total liabilities.

Open Range initially planned to offer WiMAX service to 546 communities across 17 states, serving six million people by 2014. However, Open Range now serves 140 markets spanning more than 12 states and 20,000 subscribers, according to the Denver Business Journal.

For more, see this article in The Hill.

Related posts:

1. WiMAX Provider Open Range Files for Chapter 11
2. LightSquared Partners with Open Range for Rural 4G Service
3. Google Voice Open to All

As the New Edge first reported back in 2009, Open Range obtained a $267-million loan from the U.S. Department of Agriculture’s Rural Development Utilities Program (from the traditional telecom program, not a stimulus loan) to deliver portable and eventually mobile voice and Internet services. The company also received another $100 million in private financing from an arm of J.P. Morgan Chase.

Open Range initially planned to offer WiMAX service to 546 communities across 17 states, serving six million people by 2014. However, Open Range now serves 140 markets spanning more than 12 states and 20,000 subscribers, according to the Denver Business Journal.

Open Range initially pinned its business plan on leasing 2.5 GHz spectrum from satellite provider Globalstar and subsequently committed to Alvarion’s WiMAX solution. However, in late 2010 Open Range was hit with a major setback; the FCC threatened to suspend Globalstar’s broadcast license. The company decided to explore a new direction. In March 2011, Open Range announced plans to partner with LightSquared, whereby it planned to transfer its business onto LightSquared’s to-be built wholesale LTE network. Of course LightSquared has experienced its share of setbacks, chief among them concerns related to GPS interference with its planned LTE network.

KeyOn Communications, Towerstream and possibly even LightSquared or Clearwire might be interested in purchasing Open Range.

Related posts:

1. LightSquared Partners with Open Range for Rural 4G Service
2. Committee Launches Investigation into RUS Loan to Open Range
3. Nationwide WiMAX Operator Selects Alvarion

The partnership is expected to include a licensing arrangement whereby Open Range will lease LightSquared’s L-band spectrum. This wholesale agreement will enable Open Range to sell LightSquared’s next-generation satellite capacity. The partnership also will include a 4G nationwide reciprocal roaming arrangement. The companies plan to collaborate on the design, build-out and operation of Open Range’s network as well as on product and service evolution.

It’s unclear if this is one of the new customers LightSquared alluded last month. This initial arrangement is subject to the execution of definitive agreements, which are expected to be finalized as soon as possible. The partnership also is subject to review by the United States Department of Agriculture’s Rural Development Utilities Program, and approval of spectrum lease arrangements by the FCC.

As first reported back in 2009, Open Range has obtained a $267-million loan from the U.S. Department of Agriculture’s Rural Development Utilities Program (RDUP) to deliver portable, and eventually mobile voice and Internet services. The company also received another $100 million in financing from an arm of J.P. Morgan Chase.

Open Range initially pinned its business plan on leasing 2.5 GHz spectrum from satellite provider Globalstar and subsequently committed to Alvarion’s WiMAX solution. However, in late 2010 Open Range was hit with a major setback; the FCC suspended Globalstar’s broadcast license and told Open Range to find new frequencies for its service. Open Range has been exploring all of its options, including leasing spectrum from Verizon and Clearwire, and changing direction from a WiMAX to an LTE network.

For its part LightSquared still faces several hurdles before it can launch a wholesale, nationwide 4G service. Perhaps most importantly, the FCC is requiring LightSquared to work extensively with GPS manufacturers and federal agencies to address possible interference issues before it can launch. The GPS community has said that LightSquared’s L-band spectrum is too close to GPS spectrum and that the company’s cell sites will cause harmful interference. The GPS community is rallying around this message, establishing a coalition called SaveOurGPS.org in opposition to LightSquared’s national mobile broadband network.

For more on the LightSquared/Open Range partnership, see this release.

Related posts:

1. WiMAX Provider Open Range Files for Chapter 11
2. Committee Launches Investigation into RUS Loan to Open Range
3. Airspan Partners with LightSquared, Develops Smart Grid Solution

Open Range plans to begin offering wireless broadband service in the fourth quarter of this year using Alvarion’s WiMAX 802.16e BreezeMAX solution. As part of this contract, expected to be more than $100 million over a five-year implementation, Alvarion will provide radio access equipment, customer devices and systems integration.

“We are thrilled to collaborate with Open Range as they make history building 4G broadband infrastructure in a large footprint to provide personalized broadband services to consumers in un-served and underserved parts of the country,” said Tzvika Friedman, president and CEO of Alvarion. “Open Range’s vision to connect rural America will stimulate local development for many rural communities across the U.S.”

As first reported back in November, Open Range has obtained a $267-million loan from the Department of Agriculture’s Rural Development Utilities Program (RDUP) to deliver portable, and eventually mobile voice and Internet services, to customers utilizing WiMAX technology. To accomplish the task, Open Range is leasing 2.5 GHz spectrum from satellite provider Globalstar. Within the next five years, Open Range intends to provide service to 546 communities, across 17 states, serving six million people.

Open Range is among a new crop of wireless broadband operators which plan to target rural areas across the United States. DigitalBridge Communications also has committed to Alvarion’s WiMAX solution and is targeting communities with less than 150,000 people. Main Street Broadband plans to serve areas in Florida and Georgia.

View Alvarion’s release.

Related posts:

1. Motorola Selects Eden Rock for Rural WiMAX Integrator
2. WiMAX Provider Open Range Files for Chapter 11
3. Comcast, Time Warner Expand WiMAX Services