F&B Communications has begun work on an advanced fiber optic network that will provide services to rural residents of the Lowden, Delmar and Bennett areas.

The Wheatland-based company received a $1.6 million grant and $1.6 million loan from federal government to construct the network under the American Recovery & Reinvestment Act broadband program. It will install 220 miles of fiber optic cable in the Lowden, Bennett and Delmar exchanges to serve nearly 500 homes and businesses.

The network will allow deliver high-speed Internet, high-definition digital television and voice products, said Kenneth Laursen, general manager.

The general contractor, A&A Underground, started preliminary construction in rural Lowden in early May. Crews will eventually move on to the Bennett and then Delmar exchange areas.

F&B was first incorporated in 1907, serving customers in the Calamus and Wheatland exchange areas. In addition to telecommunications and home security services, it operates a retail store offering computer sales and services.

F&B expects the project to be mostly completed by the end of 2012.