Moorhead Public Service Announces the Sale of GoMoorhead.com

Release Date: Tuesday, August 11, 2009

Contact: Doug Rogness, Communications Director
Phone: 218.299.5407
E-mail: doug.rogness@gomoorhead.com

On Tuesday, August 11, 2009, the Moorhead Public Service Commission (Commission) signed an Asset Lease/Purchase Agreement that sells GoMoorhead.com to VAL-ED Joint Venture, LLP dba 702 Communications (702). 702 will begin operation of GoMoorhead.com on September 1, 2009.

702 has purchased GoMoorhead.com from Moorhead Public Service (MPS) for $1.2 million. 702 will acquire all GoMoorhead.com customers, including nearly 2,500 business and residential customers and 1,500 Minnesota State University-Moorhead (MSUM) resident hall customers. MPS and 702 have also entered into contracts leasing MPS facilities to 702 for the operation of GoMoorhead.com for the next five years.

"Moorhead Public Service wants what is best for the residents of Moorhead and the customers of GoMoorhead.com," stated Commission President Ken Norman, "And this sale is just that, the best for the community." MPS and 702 share a similar mission to provide all of Moorhead with reasonably-priced broadband services. MPS began that mission four years ago and will work alongside 702 to continue that mission. Both MPS and 702 are committed to ensuring a smooth transition with no noticeable disturbance in service. MPS will be assisting the transition by offering technical assistance to 702 technicians, working with 702 on advertising, and providing transition assistance in customer service and billing.

In a letter to GoMoorhead.com customers, MPS General Manager Bill Schwandt stated, "The timing is right, the opportunity is right, and the buyer is right. This sale is a win-win-win; a win for you, the GoMoorhead.com customer, a win for MPS, and a win for 702. Some say change is never easy, but it is the joint goal of MPS and 702 to make this change as easy as possible."