Xfone Inc. (AMEX:XFN; TASE:XFN) wholly owned subsidiary PRIDE Network Inc. has obtained funding approval from the Broadband Initiative Program to build Fiber To The Premises (FTTP) networks in rural Texas.
Pride Networks will receive a $35.5 million loan and $28.1 million grant from the $7.2 billion for two projects from the Broadband Initiative Program as part of the US Department of Agriculture (USDA) Rural Utility Service (RUS) program. If Xfone submits another application, it may increase the government loan.
Xfone will set up a triple-play (TV, telephone, and Internet) capable network for tens of thousands of customers.
On Thursday, Xfone announced the sale of its controlling interest Israeli subsidiary, 018 Xfone Ltd. to Hezi Bezalel. for $6.5 million. He intends to turn the company into Israel's first mobile virtual network operator (MVNO).
Xfone's share fell 8.1% on the American Stock Exchange on Friday to $1.03, giving a market cap of $19 million. The share rose 39% on the TASE today to NIS 4.39.
Published by Globes [online], Israel business news - www.globes-online.com - on March 7, 2010
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