Michigan Broadband to Acquire NMU Educational Access Network, Creating Foundation for Integrated Fiber-and-Wireless Platform

Sale Approved

The Northern Michigan University Board of Trustees has approved the sale of its Educational Access Network's broadband service and infrastructure to Michigan Broadband Services for $21 million. The transaction, announced in a press release, was also reported by Upper Michigan's Source, which highlighted the board's approval.

Michigan Broadband Services will pay $19 million for the network's assets, radios, equipment and software, plus an additional $2 million for the NMU-owned towers. The deal is expected to be finalized following approval from the Federal Communications Commission.

Assets and Plans

According to the announcement from Michigan Broadband, the Educational Access Network assets include licensed 2.5 GHz Educational Broadband Service spectrum covering portions of 41 counties, Nokia AirScale radio equipment deployed across more than 70 tower sites, licensed microwave facilities and related network infrastructure. The network currently generates approximately $2.5 million in annual revenue from about 7,500 subscribers.

Michigan Broadband intends to upgrade the current network from 4G LTE to 5G, and to expand fiber and microwave backhaul to increase speed, capacity, reliability and geographic reach. The acquisition will combine the network's wireless platform with Michigan Broadband's fiber network, which spans more than 2,500 miles. As part of the integration, Michigan Broadband is working to develop a converged platform in which fiber and licensed wireless technologies work together.

Funding for the deal isn't referenced in a statement from the company, but Leach, speaking to Upper Michigan's Source, said the buyer has access to "a lot of federal resources as well as private equity that we don't have access to," and they plan to use those resources to expand the network, upgrade to 5G, and run it the way NMU has run it over the years.

Continuity for Customers and Students

Gavin Leach, NMU's vice president for finance and administration, stressed that customers should not expect any changes to their services, as NMU will continue to operate the network for members of the next calendar year. "Customers in the interim shouldn't see any change to who they talk to, to how they acquire the service, and they won't have to change out any equipment," Leach said. "It will be as seamless as possible for the customers."

University officials emphasized that NMU students and staff will continue to receive free internet access through the transition, and that customer rates will not see any immediate changes.

NMU President Chris Olsen called the sale a "great opportunity both for Northern, our customers." Leach added that there were many inquiries from providers, but the board determined that MBS's pitch would fit most with their continued goal to serve rural communities throughout the Upper Peninsula. The EAN grew to serve 115 communities in just over a decade.

Leadership Comments

Dan Miller, the chairman of Michigan Broadband and CEO of its parent company, MachTen, Inc., said in the announcement, "We have honored to become the next steward of this impressive network, and to continue providing affordable broadband every rural communities in the Upper Peninsula." He added that the company intends to invest the capital and technical resources to make the network faster, stronger, and more capable.

Phil Truran, President of Michigan Broadband, said that this transaction gives the company the tools to become a more capable provider of data, voice, video and related services. "Our focus will be on execution: maintaining substantial service during the transition, improving backhaul, upgrading equipment and a better customer experience," he said.

The network modernization is expected to support regional priorities such as education, remote learning, telehealth, small-business development, municipal communications, emergency preparedness, tribal connectivity, and digital inclusion.

The transaction calls for customary closing conditions, including regulatory approvals, third-party consents, and compliance with federal funding program requirements.