SEPTEMBER 2, 2008 -- On Friday, August 29, 2008, Broadweave Networks (search for Broadweave Networks) completed the acquisition of the iProvo (search for iProvo) network, officially becoming the sole owner and operator of what was the largest municipal fiber-to-the-premises network in the United States. (See "Provo announces sale of FTTH network to Broadweave.")
"We are pleased with the positive feedback we have received from iProvo customers as they have worked with and interacted with Broadweave during this transition," reports Mayor Lewis K. Billings. "Given the complexity of this project and transaction, we are very pleased to announce that our deal with Broadweave is now fully signed, sealed, and delivered."
The acquisition makes Broadweave one of the largest fiber-to-the-home (search for ) network operators in the country, with a network that passes 36,000 homes, businesses, government buildings, and schools at speeds up to 1,000 times faster than cable or DSL, say company representatives.Â
Broadweave's acquisition marks the first privatization of a municipally owned FTTH network.
"We've now operated and controlled networks on both sides of the fence--public and private; open and consolidated," notes Broadweave CEO, Steve Christensen.
With 60 days of operations under its belt, Broadweave says it has surpassed its sales and financial objectives.
"Take rates are up," Christensen reports. "Revenues are up. It is Broadweave's hope to earn the loyalty of every business and residential customer in Provo."
Broadweave also announced that its goals for the network extend beyond serving residential customers; the company has launched its fiber-optic data and voice services to businesses. Broadweave says it will sharpen its focus on businesses by building its direct sales as well as key strategic partnerships.
Christensen notes that Broadweave's strong sales and revenue growth over the past 60 days made it unnecessary to acquire the last few service providers on the network. "We looked at our sales growth while we also considered the high price tag for the last remaining service providers on the network," he says. "We decided to build on the customer base that we had already purchased, and, consequently, we have decided to win the rest of the customers rather than buy them."
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