Redzone Wireless gets FAME-backed $4M loan
Redzone Wireless in Camden has received a $4 million loan from Camden National Bank to develop its 4G LTE wireless broadband service across most of Maine.
The Finance Authority of Maine announced Monday that its board of directors has approved loan insurance for the bank loan, which is expected to help Redzone develop wireless broadband service that covers more than 90% of Maine’s population. It’s also expected to help the company create and retain 18 jobs in the near future.
“FAME is pleased to support Redzone with its plans to develop improved access to broadband Internet for Maine homes and businesses,” FAME CEO Bruce Wagner said in a prepared statement. “We know how important Internet access and speed are to Maine’s economic development and to its citizens in both rural and urban areas. FAME’s financing should help provide a much-needed boost for development of this important infrastructure.”
Redzone said in a separate announcement that it recently received approval from the Federal Communications Commission to operate its wireless broadband service on a FCC-licensed spectrum. The company previously announced that the spectrum is being developed through a private/public partnership with the University of Maine System.
Redzone, which is expected to launch services in select areas next month, said it plans to expand its network to cover 25% of Maine’s population within 12 months. The company said its ultimate goal is to reach 90% of the state’s population, though it did not provide a timeline.
“We are honored to be partnering with FAME and Camden National Bank on this important financing,” Jim McKenna, Redzone’s president and CEO, said. “This approval will allow us to demonstrate the potential of our wireless technology, the strength of our business model, and our alignment with the broadband and economic development goals of the state of Maine.”
When Redzone’s plans were first unveiled earlier this year, the Maine Department of Economic and Community Development said that Redzone had been certified as a Pine Tree Development Zone company and that the company plans to invest more than $5.6 million.
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