Last Updated on September 6, 2016 by cassnetwork
Indianapolis – Governor Mike Pence announced today the state has agreed to terms to lease the state’s communications infrastructure, including its existing cell towers, and deliver more than $260 million in anticipated revenue to Indiana. The Indiana Finance Authority (IFA) board approved the agreement this morning, pending review by the state’s legislative budget committee. This agreement will result in expanded rural and agricultural broadband solutions and wireless services throughout Indiana and fund the state’s bicentennial projects.
“Indiana is a national leader in partnerships that deliver sound financial returns and long-term benefits to Hoosiers,” said Governor Pence. “This agreement, if approved, will put underused assets into full play, enhance Indiana’s communication capabilities throughout the state, and fund the state’s bicentennial projects.”
According to the terms of the agreement, Ohio-based Agile Networks will pay Indiana an initial upfront payment of $50 million to manage, operate and market the state’s communications infrastructure, and pay the state an additionally anticipated $36 million in revenue share over the initial, 25-year term of the deal. If Agile Networks opts to renew the agreement for an additional 25-year term, it will pay Indiana an additional up-front payment of $10 million, plus an additionally anticipated $164 million over the renewal term.
“This expansion will enhance broadband service as Agile Networks’ open access model will give wireless carriers and providers the ability to easily enter new urban and rural markets,” said Micah Vincent, Director of the Indiana Office of Management and Budget. “The impact of significantly increasing broadband availability in underserved areas will facilitate economic development, increase educational learning and telemedicine opportunities, increase growth for rural businesses, advance agricultural technologies, and provide reliable broadband for residents.”
“Hoosiers are the big winners in this agreement, which provides revenue for important projects and expands communications opportunities throughout the state,” said IFA Director Dan Huge. “This agreement provides great value to Hoosiers by taking advantage of our currently underutilized communications assets.”
An independent report by CTC Consulting lists The Agile Network as a key differentiator and competitive advantage for attracting businesses to rural communities.
SOURCE: News release from the Office of Governor Mike Pence
Broadband Plan to Significantly Advance Statewide Economic Development
INDIANAPOLIS — The Indiana Economic Development Corporation, the Indiana State Department of Agriculture and the Indiana Office of Community and Rural Affairs released the following statements regarding the state of Indiana’s agreement to lease state-owned telecommunications infrastructure to Agile Networks. This deal is expected to significantly improve broadband availability across the state, most notably in rural areas.
Victor Smith, Indiana Secretary of Commerce:
“Whether you’re a small company in rural Indiana or a large business in one of the state’s urban centers, a strong broadband connection is just as important as the roads, rails, waterways and skies that connect Hoosier businesses to their customers around the world. Through this innovative plan, Hoosiers in underserved areas will have improved access to a key tool for innovating and launching new businesses, which will also help maintain and enhance the quality of life in rural Indiana.”
Ted McKinney, Director of the Indiana State Department of Agriculture:
“In order for agriculture to grow and thrive in today’s economy, as well as to remain competitive globally, Hoosier farmers and agribusinesses need access to reliable broadband. From collecting real-time data on crop yields to taking full advantage of modern agricultural technologies, connectivity plays an important role in the industry today, so by extending broadband availability in rural parts of the state, this plan is a major step forward for Indiana agriculture.”
Bill Konyha, Executive Director of the Indiana Office of Community and Rural Affairs:
“Attracting and retaining talent, economic and employment opportunities are largely dependent upon developing a high quality of place. This plan is a significant step forward, especially for rural Indiana, in providing access to the vital resource that is high-speed internet.”
Governor Mike Pence:
“Indiana is a national leader in partnerships that deliver sound financial returns and long-term benefits to Hoosiers. This agreement, if approved, will put underused assets into full play, enhance Indiana’s communication capabilities throughout the state, and fund the state’s bicentennial projects.”
Lt. Governor Eric Holcomb:
“This agreement will result in much-needed broadband to many rural communities across the state that are currently underserved, helping them develop and amplify the quality of life and quality of place critical to economic investment. Expanded broadband is an important tool for rural communities to attract, retain, and retrain talented Hoosiers and recruit quality employers. I commend Agile Networks for recognizing Indiana’s unmatched economic and business climate for their investment.”
For additional details on today‘s announcement, click here.
SOURCE: News release from Indiana Economic Development Corporation