DENVER (WiMAX Day). The US Department of Agriculture (USDA) announced today that it has awarded a loan of USD 267 million to the satellite broadband company Open Range Communications Inc to develop a WiMAX network that will reach 518 rural towns in America.

The loan comes as part of the USDA “Rural Development” program. According to a USDA press release, the company Open Range will build a network consisting of “cutting-edge WiMAX technology that transmits wireless data in areas not serviced by cable or DSL technologies.”

Rural Development Under Secretary Thomas C. Dorr said that “broadband is as important today as providing rural telephone service was 75 years ago, and we’re proud of our role in fostering public-private partnerships to bring broadband services to rural America… Portable, high-speed connectivity provides new options to help create business expansion in rural communities.”

The project is intended to reach a rural population of six million people across 17 US states. The USDA said that while it has in the past invested in other technologies to help bridge the digital divide, “the Open Range project is the program’s first investment to support WiMAX technology.” The agency did not say what company would supply the infrastructure or management for the network.