KeyOn Communications Holdings, Inc. , a provider of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, has completed the acquisition of substantially all of the wireless broadband assets of Wells Rural Electric Company (WREC).

According to the KeyOn, this acquisition is an important part of its planning to expand as the network footprint covers markets such as Wells and West Wendover (News - Alert), Nevada. KeyOn plans to connect its rural Nevada network, which is funded by the American Recovery and Reinvestment Act's stimulus program, with WREC’s network that serves these communities.

"The purchase of the wireless broadband business from Wells Rural Electric Company adds a well architected network with robust capacity and a stable subscriber base,” said Jonathan Snyder (News - Alert), KeyOn's president and chief executive officer, in a press release. “As a result of our planned stimulus-funded network construction, the residents of the areas covered by WREC will be able to access up to 8 MBps speeds with our 4G wireless network and these communities will benefit from job opportunities and economic development."

In September 2010, KeyOn (News - Alert) received a $10.2 million stimulus award to provide 4G, last-mile wireless broadband access and VoIP services to approximately 93,000 people, 5,522 businesses and 849 critical community facilities throughout Nevada.

A press release said that WREC’s acquisition is the eighth of network assets and subscribers since the inception of Rural UniFi in the fourth quarter of 2009 and is the company's twelfth acquisition overall. WREC looks to add positive operating cash flow in its first month of operations under KeyOn's ownership because of its assimilation into KeyOn's centralized network and customer operations center.

The company noted that Rural UniFi is a strategic acquisition initiative designed for independent wireless broadband companies to realize immediate value from their networks by being acquired by or merging with KeyOn.

Rahul Arora is a TMCnet contributor. He has worked as an editor and freelance writer for several reputed organizations in India. To read more of his articles, please visit his columnist page.

Edited by Jennifer Russell