$3.85 Million Secured for New Broadband Network That Will Improve Speeds, Costs, and Redundancy in Bozeman

BozemanFiber Announces First Round of Local Financing from 8 Banks for Open Access Network to Encourage Private Sector Broadband Investments

BozemanFiber, the community’s open access fiber optic network startup, has secured funding for its first phase of fiber construction in town. Loan funding for the $3.85 million, 23-mile fiber project is being provided by a consortium of locally-based banks. Local investors were convinced of the return on investment of an open access network that would encourage more broadband providers and services in the community. Participating funding partners include First Interstate Bank, Rocky Mountain Bank, Big Sky Western Bank, Opportunity Bank, U.S. Bank, American Bank, First Montana Bank, and Bank of Bozeman.

Starting next year, the network will offer fiber-based broadband in selected major business corridors providing affordable connections to businesses, schools, local government, and limited residential clients. BozemanFiber has a long-term business plan to incrementally expand open fiber offerings across the community.

"First Interstate Bank believes that the economic future of Bozeman requires next generation infrastructure, said Bruce Parker, Bozeman Regional President for First Interstate Bank, the lead bank for the participation loan. "We are proud to support this innovative partnership that provides the connectivity that our businesses need by empowering competitive private sector service providers. BozemanFiber’s shared infrastructure approach will make fast, redundant connectivity more affordable."

Construction of the network is expected to begin in Spring 2016 with service being available in Fall 2016. As an open-access network, customers will be able to obtain services from a number of private service providers, who will use BozemanFiber’s open local transport infrastructure to provide competitive service offerings to customers.

Background

After two years of public discussion– including a review of broadband networking availability and affordability in the community — a broad range of stakeholders ranging from the school district, hospital, small start-up businesses, financial institutions, corporations, and public sector interests agreed in January 2015 on the importance of an open access fiber optic network to improve speed, redundancy, capacity while lowering costs for business users. These interests realized that greater affordable access to broadband networking is critical to accelerate local economic development by allowing our business community to access and contribute to the information age at the speed of light.

BozemanFiber was created to own and operate the fiber network. Articles of Incorporation were filed in May, establishing BozemanFiber as a public benefit nonprofit corporation. The board of directors is made up of business, health, and education leaders in the community:

• Anthony Cochenour – President, BFI | President of Hoplite Industries

• Jerry Sheehan – Vice President, BFI | Chief Information Officer, Montana State University

• Brit Fontenot-Secretary, BFI |Economic Development Director, City of Bozeman

• James Ness – Treasurer, BFI | President, Big Sky Western Bank

• Cheryl Ridgely – Board member, BFI | Chief Business Development Officer, Bozeman Health

• Steven Johnson-Board member, BFI |Deputy Superintendent for Operations, Bozeman Public Schools

• William Procunier-Board member, BFI | President, Granite Technology Solutions

In addition to the local financing announced today from First Interstate Bank, Rocky Mountain Bank, Big Sky Western Bank, Opportunity Bank, U.S. Bank, American Bank, First Montana Bank, and Bank of Bozeman, BozemanFiber also has received financial support from Bozeman Health, Bozeman Area Chamber of Commerce, and NorthWestern Energy.

BozemanFiber also has pursued anchor tenants for the network. To date, three founding anchor tenants have signed onto the network: Gallatin County, the City of Bozeman, and the Bozeman Public Schools. BozemanFiber is currently focusing on the contracting mechanisms for network service providers and completing the technical engineering of the fiber ring on the primary routes identified within the City of Bozeman. BozemanFiber aims to be "live" in Fall 2016.

About BozemanFiber

BozemanFiber is the city’s open access fiber optic network, founded as a community benefit nonprofit corporation to provide affordable broadband for the region’s business community, public sector and residents. The privately funded organization will offer a common physical infrastructure open to private and public sector users and fueled by the marketplace of competitive internet service providers. BozemanFiber’s network is like a public road, which numerous private firms can use to deliver services to their customers. Our shared infrastructure allows private sector providers to reduce their capital expenditures and reduce the inefficiencies and costs associated with duplication of services and overbuilding. Bozeman businesses and consumers benefit from competitive service offerings and lower prices.

Contact:

Anthony Cochenour, President, BozemanFiber, 406-570-4393, [email protected]

David Fine, Economic Development Specialist, City of Bozeman, 406-551-0209, [email protected]