Arvig Enterprises Inc. has purchased $49.5 million in fiber assets in Minnesota from Windstream (News - Alert). And there’s a second deal in the works through which Windstream will sell an additional $11 million worth of fiber facilities in Nebraska to the Minnesota-based service provider early next year.
That will enable Arvig to advance its strategy to expand its regional footprint. And it will allow Windstream to continue supporting its existing services in Minnesota and Nebraska, but at a lower cost.
"These transactions monetize latent dark fiber assets in Minnesota and Nebraska, lower capital requirements in each state, and allow us to focus on our core network offerings with minimal change to our operations going forward,” said Windstream CFO and treasurer Bob Gunderman.
He adds that the deals also “set a roadmap for future fiber monetization across our footprint." That includes establishing a relationship through Windstream will use the Arvig-owned fiber assets to continue support for its products and services in Minnesota and Nebraska.
Arvig was established as a family-owned telephone company in 1950. Today it’s one of the country’s largest independent telecommunications and broadband providers. The company sells an array of business and residential broadband and communications services.
That includes business support services, call answering services, and communication and data wiring. It offers computer repair services, custom website design, digital advertising, and managed IT services. The Arvig portfolio also features Ethernet connectivity at speeds of up to 100Gb and internet connectivity at speeds of up to 1 Gig. And Arvig provides managed voice solutions, managed Wi-Fi, security services, television services, traditional telephone services, and utility construction services.
"Expanding our broadband footprint is core to our strategic priorities and bolsters our fiber assets throughout Minnesota and across the Midwest," said David Arvig, vice president and chief operating officer at Arvig. "The additional Nebraska transaction will provide a critical link for our network beyond Minnesota supporting our continued growth throughout the region."
Edited by Maurice Nagle