NMU Sells Broadband Network | Financial Impact & Future Plans

NMU Divests Broadband Infrastructure for $21 Million

Northern Michigan University has officially entered an agreement to sell its Educational Access Network (EAN) to Michigan Broadband Services (MBS) for $21 million. The deal currently awaits approval from the Federal Communications Commission. This move concludes a unique chapter for the university which spent nearly two decades operating its own regional wireless broadband service across the Upper Peninsula. NMU leadership expects the transition to finish this fall.

NMU Vice President for Finance Gavin Leach identified the sale as a calculated step to stabilize the university budget while securing the future of the network. The deal includes a provision that preserves free internet access for all current university students and staff. MBS has committed to an aggressive modernization plan that includes upgrading the existing 4G framework to 5G technology. They also intend to use their access to private capital and federal funding to expand coverage further into rural areas.

Historical Context of the EAN

Northern Michigan University started this project in 2009 to address the lack of reliable connectivity in Marquette County. As commercial providers ignored much of the region, the university stepped in to build its own infrastructure. The program gained momentum in 2017 when the school launched the formal EAN, extending service to K-12 students, tribal groups, and local governments. President Chris Olsen noted that the university held a rare position as the only school in the nation to own and operate a regional broadband wireless network.

This infrastructure proved vital during the COVID-19 pandemic. As lockdowns shifted education and work to remote settings, the EAN provided essential connectivity where no other options existed. The network eventually evolved from early WiMAX technology to the current LTE-based system. According to Leach, the university began receiving unsolicited purchase offers in recent years and ultimately hired an advisory firm to explore a sale that would maintain the mission of the network.

Financial Allocation and Regional Impact

Proceeds from the $21 million transaction will address several immediate financial obligations and long-term institutional goals. NMU plans to retire the $6.5 million loan from the Michigan Economic Development Corporation that funded the network launch in 2017. Approximately $1 million will cover legal and brokerage expenses associated with the sale. Additionally, the university will offset $4.7 million in costs related to a recent voluntary employee separation program.

Infrastructure and academics remain core priorities for the remaining capital. The university will dedicate a portion of the funds to its $9 million capital match requirement for the construction of a new College of Business building. Administrators also earmarked $3 million for strategic academic growth and recruitment. A scholarship fund will also see an injection of $1.5 million over the next decade to support students from host communities where the network infrastructure is located. Dan Miller of MBS stated the company intends to act as a steward of the network while increasing speed and capacity for all regional users.