Indianapolis – Governor Mike Pence announced 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.