MARQUETTE, MI— The Northern Michigan University Board of Trustees has approved the sale of the school’s Educational Access Network to Michigan Broadband Services.
NMU Executive Vice President for Finance and Administration, Gavin Leach, says the sale represents an important opportunity for both the university and the communities served by the network.
"This transaction strengthens NMU's long-term financial position while allowing us to invest in strategic priorities, including enrollment growth, academic programming, and student success."
Leach says current EAN customers will also benefit.
"MBS plans to build on EAN's success by upgrading the network from 4G to 5G technology and expanding service into additional rural communities," he says. "MBS has access to federal funding opportunities and private capital that they will use to invest in and expand broadband infrastructure throughout rural areas of the Upper Peninsula."
The final ownership transition is expected to be completed later this fall, pending FCC approval. NMU and MBS will work together to ensure a seamless transition for existing EAN customers, including NMU students and employees. University officials emphasize that NMU students and employees will continue to receive one free internet connection through the EAN network following the transition.
Under the agreement, MBS will pay NMU $21 million for the network and its infrastructure. Proceeds from the sale will provide additional resources for NMU to address existing financial obligations while supporting long-term university priorities focused on student success, faculty excellence, enrollment growth, and campus infrastructure. Final allocations will be determined during the upcoming academic year, but anticipated uses include:
• Retiring the approximately $6.5 million Michigan Economic Development Corporation loan that supported the EAN's launch in 2017, along with approximately $1 million in legal and brokerage expenses.
• Offsetting the cost of NMU's recent $4.7 million voluntary employee separation program.
• Supporting a portion of the university's required $9 million capital match for the new College of Business building, as well as campus technology and infrastructure needs.
• Investing at least $3 million in strategic academic initiatives and student recruitment efforts.
• Establishing annual scholarships for students from communities that partnered with NMU to host EAN infrastructure, continuing the university's investment in the communities the network has served. These scholarships will exceed $1.5 million over the next 10 years.
