By Julia Mericle, Pittsburgh Business Times
Cleveland-based Everstream announced plans to extend its fiber network into Pennsylvania, which will connect both the Pittsburgh and Philadelphia regions to the company’s high-capacity networks in other cities across the Midwest.
The expansion is part of a deal for Everstream to acquire Uniti’s existing customers in the state. The transaction allows Everstream to increase its network by more than 5,600 route miles and grow more than 35%.
Brett Lindsey, Everstream CEO, said the deal will pave the way for wireless carriers in the Pittsburgh region and other markets throughout the state to accelerate plans for 5G networks.
“We will be adding and further building out these networks over the next several years,” Lindsey said. “…One of our key beliefs is that there is not enough fiber in the ground to support the growth that is coming.”
According to Uniti’s quarterly earnings report, Uniti agreed to sell Everstream a portion of its Northeast operations, which include the Pennsylvania markets, and noted that the operations bring in about $24 million in annual revenue. The press release also explained that Everstream will pay Uniti $135 million in upfront payments, as well as $3 million annually during the initial 20-year term for the IRU lease agreement.
The deal is in the regulatory approval process, which Everstream expects to close in the first quarter of 2021.