The state said Tuesday that it has agreed to lease its communications infrastructure, including its existing cell towers, for as much as $260 million over the next 50 years to a Canton, Ohio-based private operator. The Agile Network is a hybrid network that, in partnership with asset owners, brings together wireless and fiber technologies to enhance asset value through investment and innovation, and provide an integrated “Pipe Power Tower” solution.
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On Tuesday, Governor Mike Pence announced a new program that will help speed the coverage in rural areas The State of in has chose to lease its network of towers around the state to a company that will help spread high speed internet coverage to rural areas.
The plan comes as construction on two of the bicentennial projects, the education center and plaza, is nearing completion.
In addition to the $50 million in upfront costs, Agile would pay the state a share of its revenues over the initial 25-year term of the agreement. The deal now needs to be approved by the legislative budget committee.
The deal will put Agile in charge of managing, operating and marketing the state’s communications infrastructure. Agile founder Kyle Quillen says his company plans to expand broadband coverage into unserved or underserved areas of the state. After the initial term, the company could request to extend the agreement for another 25 years but would need to make an upfront payment of $10 million and share revenue with the state at a higher rate.
Indiana Secretary of Commerce Victor Smith says a strong broadband network is “just as important as the roads, rails, waterways and skies that connect Hoosier businesses to their customers around the world”.
Access to broadband would be expanded through a “natural consequence” of the agreement’s structure and what Agile does as a business model, Vincent said.
The deal will help the state fund its bicentennial-related projects. By making an investment to unify Indiana’s existing infrastructure and assets, Agile will establish a statewide network that will transform broadband access throughout IN, including rural areas.
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“That is still an open question”, he said.
