SYLVA, N.C. -- (BUSINESS WIRE) -- In a first for western N.C., BalsamWest FiberNET today announced the installation of an ultra-high-speed fiber optic network connecting 45 school sites in seven rural school districts, including the Qualla Boundary of the Eastern Band of Cherokee Indians. Portions of BalsamWest's approximately 300-mile Tri-State fiber optic backbone ring and community networks are being provided to the schools to create an ultra-high-capacity fiber optic education network to be owned and controlled by the rural schools.

Connectivity for the 45 school sites comprising Phase I of the Western North Carolina Education Network (WNC-EdNET) is the first rollout of the network to bring next-generation communication capabilities to more than 70 school sites in the isolated Appalachian region. The WNC-EdNET will enable very low-cost access to ultra-high capacity bandwidth for high-demand voice, video, data and distance learning applications unseen before in the region. Because BalsamWest's unique business model allows for projects that enhance quality of life in the mountain communities within its network area, the company is able to offer this cutting-edge connectivity at far below-market rates, enabling access to an even greater segment of the region's population.

Running through the highest and most rugged terrain east of the Rocky Mountains, a dedicated portion of BalsamWest's high-capacity fiber optic pipeline will connect rural schools, colleges and universities together to share content and applications from within and outside the area. Before now, fiber ownership and advanced optical technology, providing tremendous pipeline capacity across such a large area, was only available to the largest organizations in the country.

"Quality of life in the 21st century will be largely determined by access to the highest-quality education and training," said Dr. Cecil Groves, president of Southwestern Community College and an architect and key advocate of the BalsamWest venture. "This is particularly true for hard-to-serve rural areas isolated by location with limited choices available. Access to a fiber optic-based communication system for these schools will more than level the education playing field. It will position our rural schools to be national leaders, our students to have access to the finest education and training available and our region for a prosperous future."

Connecting Classrooms, Minds
Originating in Sylva, N.C., and connecting the Tri-state area to nearby metropolitan centers, BalsamWest's fiber optic network is connecting K-12 public and charter schools, school district offices, network operations centers and higher education institutions in the counties of Clay, Cherokee, Graham, Jackson, Macon and Swain, and the Qualla Boundary of the Eastern Band of Cherokee Indians.

Local Collaboration
The installation of BalsamWest's Tri-State network began in 2003 through a collaborative partnership of the Franklin-based software developer and one of the largest electronic tax filing companies in the U.S. - Drake Enterprises, and the Eastern Band of Cherokee Indians in Cherokee, N.C.

Southwestern Community College in Webster, N.C., provided critical research to BalsamWest, which was funded by the Appalachian Regional Commission in Washington as well as by state and local nonprofits and foundations, and provided advocacy and support for BalsamWest's efforts in the southwestern North Carolina region.

In October 2005 and through 2006, BalsamWest worked with local fiber optic network owners to extend the reach of its Tri-State network and community networks, leveraging local resources for cost efficiency in connecting all 70 schools in the southwestern region of North Carolina together on their own ultra-high capacity network.

Blue Ridge Mountain Electric Membership Cooperative provided crucial fiber optic infrastructure in Cherokee County, interconnecting it to BalsamWest's network ring. Local underground utility construction company, Southern Pipeline Utility, is providing construction services for the school sites where needed. Collectively known as the "ASAP Partners" (Alliance for Southern Appalachian Prosperity), the fiber optic network owners were able to save the schools in the southwestern region of North Carolina more than $60 million in circuit and content costs over the next 20 years.

"This network will serve as a catalyst for advances in education as well as health care, public services, economic opportunities and job creation for the Eastern Band and Western North Carolina," said Brandon Stephens, Eastern Band of the Cherokee Indians and chairman of the Board of BalsamWest FiberNET. "We are thrilled to be a part of this venture and are excited about the opportunities on the horizon."

Through an investment of $14 million, the construction of BalsamWest's fiber optic network was funded by its founding members, Drake Enterprises, Ltd. and the Eastern Band of Cherokee Indians. Grants for Phase I of the WNC-EdNET were awarded to the Western Region Education Service Alliance (WRESA) by the Cherokee Preservation Foundation and the Golden LEAF Foundation.

"We couldn't have accomplished this great feat without the help and support of Executive Director Bill Gibson of the Southwestern Commission, Roger Metcalf with the Western Region Education Service Alliance, Sen. John Snow from Cherokee County, Erskine Bowles, past chairman of the N.C. Rural Prosperity Taskforce and current president of the North Carolina University System, and many more," said David Hubbs of Drake Enterprises, Ltd.

Laying Groundwork for the Future
Phase I of the WNC-EdNET demonstrates BalsamWest's continued commitment to improve telecommunications reliability, lower costs of connectivity, fuel economic development and work collaboratively to improve health care, education, public services and quality of life in the Tri-State region.

Phase II of the WNC-EdNET is expected to be completed in 2007. At that time, every school, college and university in the region will be connected together with the freedom to choose educational content and resources from regional, national and even international institutions.

About BalsamWest FiberNET
BalsamWest FiberNET is a leader advancing knowledge-based companies, applications and technology in western N.C., northern Ga. and eastern Tenn. A fiber optic-based wholesale telecommunications carrier, BalsamWest provides dark fiber, collocation and high-capacity communication circuits via SONET & Ethernet services. Headquartered in Sylva, N.C., BalsamWest is rapidly expanding a world-class fiber optic network to provide open and direct access to advanced telecommunications infrastructure within and through the rapidly growing Tri-State area to nearby metropolitan areas.