Bluemile and City of Gahanna CIC Enter Into 15-year Fiber-optic Agreement

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This public-private partnership brings tier 1 bandwidth and the latest technology advantages to Gahanna's business community.

The connectivity that the Bluemile network can bring to Gahanna will be a driving force in their economic development for years to come.

In 1999, the City of Gahanna began the construction of a fiber-optic network for municipal use cases like traffic management, water meter reading and wireless data communication for safety forces. With the changing business environment, it became apparent that giving local companies the ability to maintain relationships with service providers regardless of location was an important element for economic growth. In 2009, the City partnered with the Gahanna Community Improvement Corporation (Gahanna CIC) to leverage the existing fiber infrastructure to better service the Gahanna business community. Nearing completion, the network was in need of a provider that would bring tier 1 services and new technology options for economic development. On July 13, 2009, a Request for Information was distributed to all local and select national providers to find the right partner in this endeavor. A Request for Proposals followed to generate a list of possible partners. On August 28, 2009, Bluemile was selected because their proposal closely matched the Gahanna CIC’s goal of creating a business incentive that provided significant technological and financial benefit to Gahanna businesses, while simultaneously creating a revenue stream for the Gahanna CIC that ensured the future expansion of Gahanna's fiber network. The Network Services Agreement was executed August 5, 2010, giving potential and existing Gahanna businesses the option to connect to over 180 carriers nationwide through Bluemile's nationwide network.

The Gahanna CIC has a plan to invest a percentage of the generated revenue into future network development and business growth. The CIC can rely on Bluemile to manage the network efficiently, market the benefits to existing and new Gahanna businesses, and support the services rendered with expert professionals utilizing years of best practice experience. "It was important that the most qualified partner be chosen to leverage the fiber capacity that the Gahanna CIC has through their agreement with the City of Gahanna. Through a thorough selection process, Bluemile rose to the top because of their proven record of working with communities like Gahanna," stated Greg Dunn, of Schottenstein Zox & Dunn. "The connectivity that the Bluemile network can bring to Gahanna will be a driving force in their economic development for years to come." Greg Dunn was a member of the independent consulting team from SZD Whiteboard that advised the Gahanna CIC.

This arrangement allows Gahanna and the businesses within it to connect to a diverse set of carrier options. The Gahanna CIC is now able to offer connectivity choice normally seen in markets much larger than their own. Dependable and affordable internet bandwidth is the key utility that municipalities can offer their business community. It allows the business located in Gahanna the ability to diversify based on technical requirements, and have pricing pressure on their current and prospective providers. “Those municipalities that are able to take part in offering expansive services and product sets are creating the kind of competitive distance that electricity did 100 years ago. Municipalities either accept this reality and grow, or face actively putting themselves at a competitive disadvantage,” adds Dunn. “Bluemile has shown themselves to be a dependable asset in capitalizing on this trend.”

Anthony Jones, Deputy Director of Planning and Development for the City of Gahanna, said, "I am excited about how this initiative will increase the economic development tools available to serve Gahanna businesses. The broadband initiative between Bluemile and the Gahanna CIC is poised to change the way business is conducted within the City of Gahanna. This partnership will allow businesses, both those that are currently located within Gahanna and those considering locating into Gahanna, the means to reduce their operational costs and increase their internet bandwidth capacity while simultaneously having greater access to technology services."

Bluemile will invest the capital needed to connect to the Gahanna CIC network and provide connectivity via up to 48 fiber-optic lines within Gahanna. The deal will take what currently is a non-revenue-producing asset and create an income stream for the CIC of 15 percent of gross revenues from connectivity fees collected for the services provided by Bluemile. "The Bluemile network team is looking forward to the opportunity of partnering with the Gahanna CIC," stated Chris Kane, Director of Network Engineering for Bluemile. "Having a chance to help build out portions of that infrastructure is exciting. We have had great success with similar municipality builds. We will take advantage of our experience with deploying Cisco's metro technologies. By applying best practices, we can give Gahanna and its businesses the options and flexibility in which they are interested."

John McKenna, Vice President of Enterprise Sales for Bluemile, said, "We are extremely proud to announce the agreement between the Gahanna CIC and Bluemile. Gahanna is a progressive community that has determined that affordable access to technology and choice of providers is a critical component to a business's success. We are excited to offer the City of Gahanna and their businesses fiber optic based access to a wide range of telecommunication service providers and technology solutions."

About Bluemile INC
Bluemile is an established leading-edge provider in cloud services, wholesale voice, colocation and data technology solutions. With an optical and IP National Network powered by Cisco, a Sonus powered Voice Network, an enterprise-grade fully owned and operated tier 3 datacenter, and a best of breed vBlock cloud infrastructure, Bluemile has become one of the fastest growing companies in the industry. Bluemile specializes in the products and services that power the most successful companies and service providers worldwide, and was recently named to Inc 500/5000’s list of fastest growing companies.

About CIC
The CIC, incorporated in 1965, is a nonprofit organization formed under city legislation and governed under the Ohio Revised Code to promote "the industrial, economic, commercial and civic development of a community or area."

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This release may contain forward-looking statements regarding future events that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. Any forward-looking statements represent Bluemile's views only as of today and should not be relied upon as representing Bluemile's views as of any subsequent date. While Bluemile may elect to update forward-looking statements at some point, Bluemile specifically disclaims any obligation to do so, except as required by law.

Bluemile™ and bCloud™ are registered trademarks of Bluemile, Inc. All other company and product names may be trademarks of the respective companies with which they are associated.


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