JOHN DAY — Oregon Telephone Co. has been awarded $20.4 million in grants and loans to install fiber optic infrastructure in Grant, Malheur and Baker counties.

The latest round of federal money will provide high-speed fiber connections directly to 1,200 people, 41 businesses, 70 farms and four educational facilities as part of the ReConnect Program, using funding from the recent Bipartisan Infrastructure Law. The program is aimed at ensuring rural communities see the benefits of high-speed internet.

The new funding is part of $502 million in loans and grants being offered to projects in 20 states through the USDA’s Rural Development program. Of the $20.4 million earmarked for the state of Oregon, the full amount is being awarded to Oregon Telephone Co.

Marcus Bott, operations manager of OTC Connections, explained that OTC is currently using funds from the first round of the ReConnect Program, more than $8 million, to install fiber in Long Creek, Monument, Spray and Seneca.

The new award, a mix of $10.2 million in grants and an additional $10.2 million in loans, will allow OTC to update the infrastructure in additional areas. Internet speeds will improve from 10-25 megabits per second over the old copper lines to more than 2 gigabits per second over fiber, a 200 times faster connection for consumers. The new work from this most recent round will allow OTC to continue to expand coverage to additional areas in Grant County from Dayville to Mount Vernon. A fourth and possibly final round of ReConnect Program funding is currently open and OTC is in the process of applying.

OTC is working to get all new home developments wired to the network at the time of construction. For existing homes, the company would run fiber from the closest junction to the home at the time the service is ordered.

As the fiber cables will be installed underground, there will first need to be a review from the Oregon State Historic Preservation Office and a review from federal agencies regarding possible archaeological sites in the path of construction. New installation from this latest round will not begin until state and federal reviews are completed, a process that took about two years for the initial round.

OTC currently employs roughly 30 people, with 20 of those in John Day. The new projects could lead to additional hires, but no decisions on that have yet been made.