TDS exploring purchase of Sun Prairie Utilities’ telecommunications assets and business relationships in Wis.
Collaboration could result in accelerated fiber broadband coverage and faster internet service for entire city.
Leaders at TDS Telecommunications Corp. (TDS®), a subsidiary of Telephone and Data Systems, Inc., and Sun Prairie Utilities (SPU) in Sun Prairie, Wis. have signed a non-binding letter of intent (LOI). The LOI indicates TDS’ interest in acquiring all of the telecommunications assets associated with the community’s operation, transport, delivery, and support of telecommunications services currently offered by SPU, including all customer agreements.
“SPU has built a strong fiber broadband network and has worked hard to expand broadband capacity in Sun Prairie for its citizens,” said Drew Petersen, vice president of External Affairs and Communications at TDS. “We plan to expand the network to launch 1Gigabit broadband speeds, as well as phone service, and our industry leading IPTV solution, TDS TV, to residents. For businesses, we would look at providing dedicated fiber connections and our hosted VoIP phone solution, TDS managedIP Hosted.”
To deliver the new and advanced services Petersen mentioned above, TDS will invest in the network over the next 12 to 24 months. According to Petersen, TDS anticipates building out additional high speed fiber optic connections to the majority of the city — including residential and commercial areas. TDS is also exploring making fiber service available to future business developments, within the city, to help foster business growth and attract more economic development projects.
“Under the LOI we are signing, TDS will own and assume full responsibility for managing and operating our existing fiber network and build on the important work we started,” stated Paul Esser, mayor of Sun Prairie. “TDS would continue with our vision to have a highly connected community, accelerate investment, and expand communications services to include TV and phone offerings in addition to high speed internet service. This sale would divest the City and its taxpayers of any risk associated with the project. I am optimistic about this proposal and remain committed to ensuring the final agreement provides our citizens with the best possible terms.”
“As Utility commission president, I am very proud of SPU’s fiber network and the high level of service it provides to its customers; however, the operation and expansion of such a business comes with significant risk,” explained Ted Chase. “By transitioning our network to TDS, more households and businesses will have access to fiber internet at no risk to the Utility.”
With the non-binding LOI signed, the city and TDS can begin exploring potential collaboration in greater detail. The organizations are committed to working aggressively toward the signing of a definitive agreement and hope to conclude all steps by the end of March 2017.
For more information, visit tdsfiber.com.
