Open Range Communications To Bring Affordable, Portable, Wireless High-Speed Broadband To Over 500 Rural Communities And Six Million Citizens Across The United States
Colorado-based company receives approvals from U.S. Department of Agriculture’s RDUP Loan Program
Greenwood Village, Colo, — October 22, 2007 — Open Range Communications, a broadband wireless provider whose primary focus is delivering rural wireless broadband that is Simply EasierSM, today announced it will build a national network offering high-speed data and voice services to hundreds of un-served and underserved rural communities across America.
The company received approval of its Broadband Access Loan application from the United States Department of Agriculture’s Rural Development Utilities Program (RDUP) for $268 million. Under the RDUP regulations, Open Range is required to fully repay the federal government, including all interest, over the next 12 years. As part of the agreement, Open Range has also secured an agreement to receive $95 million of private equity funding.
“This is an exciting day for our company and our country,” said Bill Beans, Jr., Chairman, CEO and Founder of Open Range, which incorporated in 2004. “We appreciate the confidence the RDUP and our new investor have shown, and look forward to working with each of our partners to bring high-quality, high-speed wireless communications products and services to markets which have been ignored for too long. Today we begin the process of liberating consumers from a fixed line connected to the wall by offering the ability to use our service anywhere in the coverage area offering broadband freedom that until today was never available in rural markets across the U.S.”
Mr. Beans continued, “Every citizen in America deserves affordable access to the Internet and the vital services the Internet provides, from public safety to education and healthcare. Within five years, we will provide these services to over 500 communities that otherwise would not have been able to enjoy the many economic and social benefits other citizens around the world enjoy. The opportunity for rural kids to stay at home and pursue their dreams where they are raised is about to become a reality.”
Open Range data and voice services are Simply EasierSM. The solution requires no home installation, no unsightly antennae’s affixed to your roof, no technicians trying to schedule a time that works best for them to connect your service, and no confusing hardware configurations required to initiate service. Customers simply connect an Open Range device to any desktop or laptop computer, and they will have instant, portable, dependable and low-cost access to the Internet using licensed spectrum. This “un-tethered” approach, using WiMAX technology, eliminates the need for expensive and vulnerable cables or phone wires. Network equipment will be located on existing towers and buildings, leaving the existing landscape intact.
Broadband Internet access at a minimum of 1.5 Mbps download and up to 512 kbps upload speeds will be affordably priced at less than $40 per month; unlimited national voice services will be offered at less than $30 per month.
Open Range began the application process approximately three years ago. It invested more than $7 million in order to provide the RDUP with an extremely comprehensive and detailed plan consisting of over 30,000 pages of documentation. This included quantitative results from one of the largest rural broadband market research surveys ever conducted in the United States, surveying over 20,000 citizens in the targeted markets. Additional documentation included sophisticated economic models, marketing plans, sales plans, operating plans, technology road maps, extensive analysis of the technology, detailed service delivery architecture, and specific customer service and support operating models. The Rural Broadband Access Loan and Loan Guarantee Program are designed to provide loans for funding on a technology neutral basis. The loan covers the capital costs of construction, improvement and acquisition of facilities and equipment to provide broadband services to eligible rural communities. The Program’s goal is to ensure that rural consumers enjoy the same quality and range of telecommunications services that are available in urban and suburban communities. Open Range will repay the U.S. government in full with proceeds from operating one of the most cost-effective capital infrastructure networks to be deployed in recent history.
Open Range will use wireless spectrum authorized for WiMAX services within the United States. This agreement will cover an initial population of 12.5 million with the ability to expand the relationship over the next six years to additional markets covering 50 million people. Open Range will use this spectrum to deploy portable broadband services via a WiMAX architecture anywhere within the targeted communities.
RBC Daniels, L.P., a subsidiary of RBC Capital Markets, served as financial advisor to Open Range in its arrangement of the equity funding commitment and its formation of certain partner relationships.
About Open Range
Open Range is a broadband wireless provider building a national WiMAX network to deliver wireless broadband to un-served and underserved rural American communities that is Simply EasierSM. Open Range plans to deliver voice and data services on a portable and eventually mobile basis to customers within its robust WiMAX footprint. Within the next five years, Open Range intends to serve over 500 communities, making its services initially available to approximately six million people. Open Range’s wireless broadband network solution will connect customers through licensed spectrum, enabling communities to improve safety, economic growth, education, and quality of life and to remain competitive in the age of constant communications. For more information, please visit www.openrangecomm.com.
About USDA Rural Development
The USDA Rural Development's mission is to increase economic opportunity and improve the quality of life for rural residents. USDA Rural Development has invested more than $76.8 billion since 2001 for equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. More than 1.5 million jobs have been created or saved through these investments. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA's Web site at www.rurdev.usda.gov.
About RBC Daniels
RBC Daniels, L.P. is a leader in financial services to the cable, telecommunications, media and technology industries worldwide. The company assists clients with mergers and acquisitions, public and private equity and debt financings and financial advisory engagements. RBC Daniels is a subsidiary of RBC Capital Markets Corporation. RBC Daniels is a member of FINRA and SIPC.