The state of Indiana entered a 50-year/$50 million lease agreement with Agile Networks. Governor Mike Pence made the announcement Tuesday that residents could soon see expanded broadband capabilities, especially in rural areas, because of the deal.
The state Finance Authority approved the lease of 341 under-utilized towers to Agile Networks in exchange for putting their own equipment on the towers and renting out additional tower space to other carriers and network providers. Agile will pay the state $50 million upon approval of the contract by the State Budget Agency and the governor.
According to the Evansville Courier Press, the $50 million will go towards paying for the state’s numerous bicentennial projects as Indiana celebrates 200 years of statehood. The public finance director for the state, Dan Huge, said the agreement could generate up to $260 million in revenue if all 50 years of the agreement are completed. Both the state and Agile Networks will have to approve a 25-year extension after the first 25 years. For the first 25 years, Agile will pay $50 million up front and the state will then receive 6.2 percent of all of Agile’s Indiana-based revenue, Huge said. He estimated that total at $35.8 million.
Kyle Quillen, Agile Network founder, said the lease takes advantage of unused broadband and fiber optics across the state. Quillen told the Courier Press six to 12 months after the agreement is finalized and approved, he hopes to have increased connectivity in 50 areas of the state, with the possibility of more expansion. He said not only will the company be adding broadband in areas where it’s currently unavailable, Agile will also add options for consumers in areas where there may only be one or two options currently.
“We’re going to be able to bring our proven model to the state to effect a lot of different benefits in a lot of different areas,” Quillen said.
In addition to adding their equipment to the state-owned towers and leasing available space to other companies, Quillen said he also expects Agile to build towers of their own at some point.
This deal was made possible by legislation passed in 2015, as a way to pay for Indiana’s bicentennial projects. Micah Vincent, director of the Indiana Office of Management and Budget, said this lease gives the state the welcome problem of deciding how to spend extra income generated by the revenue sharing. Vincent said the 2015 law didn’t specify where extra money would go and it’s something lawmakers and state leaders would need to discuss.
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