Midco is a midwestern service provider that offers broadband via hybrid fiber coax (HFC) cable, fiber-to-the-home, and fixed wireless access (FWA). It serves 490,000 homes and businesses in 400 communities in Kansas, Minnesota, Nebraska, North Dakota, South Dakota and Wisconsin.
This week, Midco announced that it sold its tower portfolio to K2 Towers. The two companies did not reveal the monetary amount of the transaction nor how many towers were involved.
Sounds like Midco wants to focus on broadband service…
Bruch said, “We want to make sure that we, as a company, focus on our core business which is broadband, providing the best broadband experience and video and phone. And towers were adjacent to that.”
Midco also sold the towers for financial reasons. The sale allows it to reduce its general debt, which is attractive given the currently high interest rates.
But the towers are still important in their CAFII commitments…
Instead of owning the towers, Midco will lease them from K2 Towers, a company based out of Ohio. The towers are located in Minnesota, North Dakota, South Dakota and Wisconsin.
Midco still needs access to the towers to provide FWA [fixed wireless access] service — part of its commitments when it won $39 million in Connect America Funds (CAF II) from the government in 2018.