KeyOn Eyes Acquisitions

KeyOn Communications Holdings, a provider of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced that the company has launched an aggressive acquisition initiative, called Rural UniFi, designed to rapidly expand its subscriber base and network footprint.

KeyOn said it already boasts a network covering 50,000 square miles in 11 states, making it positioned to integrate wireless broadband companies in contiguous areas. The company has integrated four previous acquisitions resulting in growth of its subscriber base.

Jonathan Snyder, President and CEO, said, "We have been focused on growing broadband subscribers in rural markets for over seven years, having evolved from a single market operator to a company that is one of the largest providers of wireless broadband in the country. The rural wireless broadband industry is extremely fragmented, with very few companies realizing any economies of scale in their businesses. Considering the current lack of capital available in the market, the Rural UniFi initiative represents a way for wireless broadband companies to unlock the value of their networks. Our companies can share in the upside of a larger, scalable company while we leverage our existing systems, management experience and wide distribution network. Over the coming months, we expect to make several announcements about companies that have agreed to join the initiative."

According to the company, because of the lack of available broadband options, rural markets are often served by independent wireless broadband operators who provide valuable broadband services to their communities. Despite their efforts, rural markets continue to lag their urban and suburban counterparts in terms of home broadband penetration by over 20 percent (approximately 45 percent versus 65 percent broadband penetration for rural and urban, respectively). While some progress has been made increasing rural broadband penetration, there is still an amount of growth opportunity remaining. By bringing greater scale, purchasing power, favorable pricing and top-tier technology partners to these communities, KeyOn said it believes it can accelerate rural broadband adoption and expedite the delivery of next-generation services.

Snyder said, "While we remain excited about the potential opportunities through the American Recovery and Reinvestment Act of 2009 (ARRA), we have always grown through acquisitions and our Rural UniFi initiative reinvigorates this effort in a big way. Given our diverse coverage area across the Midwestern and Western U.S. and our experience in growing rural markets, we are strategically positioned to continue to successfully integrate rural wireless broadband providers into KeyOn's operations. We have always believed that by bringing together contiguous networks we can create a sizable, next-generation rural telecommunications company."

KeyOn has added resources in support of the Rural UniFi initiative in order to handle the volume of pending transactions and inquiries. Interested wireless broadband operators can visit KeyOn's initiative through the company's website where they can receive more information and begin the qualification process.

KeyOn initiative:

keyon.com/ruralunifi.html

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