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After the three largest U.S. telcos (AT&T, Qwest and Verizon) and cable operator (Comcast) said they would opt out of the first round of broadband stimulus funding under the American Recovery and Reinvestment Act (ARRA), Level 3 made a point to assert its role as a neutral "middle mile" wholesale service provider to rural last-mile broadband operators. The Colo.-based wholesaler revealed that it has proposed $15 million in grant funding along with $5 million of its own matching funds to develop "middle mile" connections for other service providers to the Level 3 network to more than 50 rural markets in six states.  

Level 3 said it plans to use a combination of the funding and its own money to install new equipment in existing buildings located in rural areas along the route of its network. These buildouts would create these middle mile connections to its network to deliver Internet, voice, data and video services to not only traditional phone, cable and wireless operators, but also government agencies and to local schools and colleges.