District reaches deal with Sprint

n The agreement is scheduled to net SSSD $1.25 million over the next 30 years.

A lease agreement with Sprint for a broadband signal license will bring the Siloam Springs School District $1.25 million over the next 30 years.

The school board approved the agreement at the Sept. 13 school board meeting. Five school districts in Northwest Arkansas, including Siloam Springs, Elkins, Gentry, Lincoln and Praire Grove, purchased a broadband signal license in 1987 with the intent of broadcasting educational television, according to assistant superintendent Jody Wiggins. The program never materialized because the required equipment was too expensive, he said.

The signal spectrum was leased to Smithco Investments in 1994 and then renewed on a 15-year term with Nucentrix Broadband Networks after they acquired Smithco in 2001, Wiggins said. Under the agreement the school was to receive $250 per month plus a percentage of profits, but the money never materialized, he said. The lease was acquired by Clearwire in the mid 2000s and the company began paying the monthly fee. In early 2010, Clearwire was acquired by Sprint.

The lease expired in April of 2016, and the five districts got together to put together a plan for the best way to use the signal, Wiggins said. They received foundation funding to acquire a consultant and spent six or seven months exploring possible options, including providing free wireless broadband internet for students in Northwest Arkansas. There was no economical way to provide a wireless signal so the consultant recommended holding a lease auction, he said.

The broadband signal lease agreement was auctioned for $1.2 million per school district over 30 years. Sprint did not participate in the auction because its previous contract with the five districts gave the company the option to provide a counteroffer to any sale. Sprint countered with an offer of $1.25 million for each district over 30 years. Under the new agreement, each district will receive $60,000 upfront, followed by a $2,000 per month payment, which will increase by 3 percent each year, Wiggins said.

Superintendent Ken Ramey said that Wiggins led the effort to research the best way to make use of the broadband signal. He attended a conference in Florida and made inroads in Washington D.C. during the research process. Wiggins also worked to get funding to hire the consultant, he said.

"I want to thank him sincerely for his knowledge of the process, follow-up and intensive effort over an extended period of time," Ramey said.

In other business, the school board took the following actions:

• Approved resolutions to contract with three local businesses who have employees or relatives of employees involved with the school district, including Arvest Bank, Jackson Sound Company and JR's Sports World.

• Hired Danessa Kemerling to serve as an additional kindergarten teacher to serve the increased population of students.

• Approved ten student transfers from the Gentry School District into the Siloam Springs School District.

General News on 09/21/2016