PALM COAST, Fla., Nov. 2, 2011 /PRNewswire/ -- O2 Secure Wireless, Inc. (Pink Sheets: OTOW) announces that the Company has embarked on phase one of the LTE network penetration strategy. The Company plans to provide coverage to over 500,000 customers in under-served or un-served markets in Florida, Kentucky, Mississippi, Alabama, North Carolina, and South Carolina.
The $33,000,000 loan will be administered through the Rural Utilities Service Telecommunications Program, a division of the US Department of Agriculture. In August of this year, the Washington office assigned the Company a Government Field Representative, which has preliminarily approved all 65 cities and towns for Rural Utilities Service (RUS) funding.
In addition, the company has retained Mr. George Bochis as in house general counsel. Mr. Bochis was previously the SVP/General Counsel for a private real estate development and management company. During his tenure there he had oversight responsibility for a number of individual limited partnerships (28 of which have been the recipient of USDA loans and loan guarantees in excess of $110,000,000). He also served on the advisory board of a public REIT.
The terms are advantageously structured for the loan to be amortized over the economic life of the network equipment and will bear an interest rate equivalent to the ten year Treasury bond presently at 2.0%. Val Kazia, CEO of O2 Secure Wireless states, "The remarkably low interest rates are extremely attractive, as compared to traditional commercial loans, whose offers have been presented at prime plus 275 basis points. In addition, the USDA offers interest only payments for the first 12 months during the construction of the network; we believe this will enable exponential domestic growth. The application has been submitted for review."
The goal of the Broadband Program is to ensure that rural consumers enjoy the same quality and range of services that are available in urban and suburban communities. This Program aims to lend to entities that plan to offer broadband services at levels that keeps pace with technological innovations while meeting the demands of customers in rural America. O2 will construct the most technologically advanced LTE network presently available, capable of download speeds of 25 megabytes per second.
The Rural Broadband Access Loan and Loan Guarantee Program (Broadband Program) furnishes loans and loan guarantees to provide funds for the costs of construction, improvement, or acquisition of facilities and equipment needed to provide service at the broadband lending speed in eligible rural areas with a populations not to exceed 20,000 residents.
About O2 Secure Wireless: O2 Secure Wireless is a Company that is currently developing numerous wireless tower facilities in the U.S. The Company is also instrumental in the development of wireless broadband communication services domestically. Under a recent merger with Earthcom Service Inc., the Company is currently being structured to provide affordable flat rate pre-paid wireless services in developing countries internationally.
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For more information visit our website at http://o2securewireless.com or contact Investor Relations: Gibraltan Financial (407)830-9777
SOURCE O2 Secure Wireless, Inc.