WildBlue Communications is continuing to move forward in the delivery of satellite broadband connections. On January 10, 2006 they closed a secured
credit facility of over $200 million. These funds will be used to continue the steady growth of its high speed Internet access business. Terms of the credit facility were not disclosed.
WildBlue will use the financing to grow its broadband business and to facilitate the launch of a satellite in the 4th quarter of 2006. The new satellite will enable WildBlue to grow its customer base of home and business users. The demand for the service has been very strong among consumers that are not served by other broadband alternatives.
Paul Froelich, CFO of WildBlue stated, “This financing has significantly enhanced WildBlue’s financial position. It will enable WildBlue to accelerate the growth of our broadband business in 2006 and facilitate the launch of our next satellite.”
One of the partners involved in the lending group is the National Telecommunications Cooperative (NRTC). NRTC leads and supports more than 1200 member organizations by delivering telecommunications solutions to strengthen member business, promote economic development and improve the quality of life in rural America. The rural utilities that make up NRTC offer services to more than 30 million rural households in the United States. They are serving their customer base by partnering with and providing WildBlue Satellite Internet Service to many rural customers in the contiguous United States.
The always on broadband service delivered by WildBlue has been adopted by many customers that had no alternatives other than slow dial-up service. They were anxious for a service that is over 30 times faster than dial-up, and customers do not need a phone or cable line in order to receive fast broadband internet access. At the present time this is a growing market of users that were left out of the opportunities available with fast broadband Internet access.