Tuesday, October 25, 2011
Minnesota’s LocalLoop announced last week that it has developed, in partnership with Israel’s Runcom Technologies, a new 4G product designed to deliver Internet access to those in underserved rural areas. LocalLoop believes this new cloud-based, turnkey solution will revolutionize the industry. Rather than rely on the established notion that carriers need localized, on-site equipment to distribute the service, LocalLoop says its’ cloud-based, Software-as-a-Service (SaaS) platform avoids the limitations of the existing systems, and at a reduced cost.

Meanwhile, political candidates and the established providers are fighting over money and ideas to extend the old networks. Do they not realize that the rules of rural broadband are changing?

While the old guard remains bogged down in stale battles, the upstart companies are redefining the game. Cloud-based, wireless internet service providers (WISPs) are developing new technologies that make the “last mile” talk irrelevant. Companies like LocalLoop and PowerCloud™ Systems are creating new, forward-thinking business models that capitalize on cutting-edge technologies. Perhaps even more noteworthy is that these companies are doing so using private funding. The push and pull of governmental finance options becomes irrelevant.

The Federal Communications Commission (FCC) issued a statement recently that it is close to revising the Universal Service Fund (USF), which determines how rural companies are subsidized. The new rules are supposed to add emphasis to broadband communications. Based on what’s happening in the private sector, you have to wonder if the changes are even going to be effective.

Labels: Local Loop, Rural Broadband

posted by Unknown at 3:57 AM Link to this Article  0 Comments

Tuesday, October 18, 2011
The 2011 WISPAPALOOZA conference was held in Las Vegas last week. The event is dedicated to Wireless Internet Service Providers (WISPs), which are entrepreneurial ventures – often privately funded – with a goal of building a wireless
infrastructure to support broadband internet access to underserved markets. Unlike the traditional telecommunications companies that are slow to market, WISPs are agile organizations that can adapt and roll out services quickly and efficiently.

One of the big announcements at the conference was PowerCloud™ Systems unveiling of its CloudCommand™ OPEN Software as a Service (SaaS) platform. The new platform will support access points from the Ubiquiti Networks' Unifi family and the Arada Systems' MaxR family. Ubiquiti, in particular, is one of the growing players in the burgeoning equipment provider market, with plans for an Initial Public Offering.

PowerCloud’s announcement is significant. Ubiquiti Networks and Arada Systems supply affordable hardware that, when combined with the CloudCommand OPEN platform, enables services providers to supply all the tools necessary to operate and manage Wi-Fi networks. More important, the cost is significantly less than the traditional systems.

The established telecommunications companies and government entities that are providing funding need to take notice. One of the key arguments in the debate to close the rural divide has been the cost of establishing networks in remote areas. As WISPs spread, the point becomes moot. And because WISPs are privately funded and adaptable ventures that can provide service at a fraction of the cost, rural broadband no longer becomes a political issue.

Labels: Entrepreneurship, Rural Broadband, SaaS, WISP

posted by Unknown at 4:36 AM Link to this Article  0 Comments

Tuesday, October 11, 2011
Omnicity, a Southern Indiana rural broadband provider, filed for Chapter 11 bankruptcy last week. Just two years ago, with the governor at the official press conference, the company announced plans for expansion in Ohio while promising job opportunities. At the time, Omnicity provided rural broadband access to more than 30 Indiana counties with plans to be one of the primary sources of connectivity in the country. What happened?

The problem was bad business – the company secured loans they were unable to repay. The most infuriating part, however, is that these were government loans that now have little chance of being repaid. Was the company in solid fiscal shape before acquiring the loans? Was the government, so caught up in the idea of economic development via rural broadband expansion, blinded by the reality that Omnicity wasn’t financially viable?

Omnicity’s bankruptcy filing is a prime example of why government should reconsider involving itself in rural broadband expansion. If the need is there, people will buy the product. But all the effort – as well as the political grandstanding – is for naught if the demand isn’t strong enough. And if those in rural communities are in such dire need of broadband access, perhaps they need to consider whether they’re living in the right place.

To be sure, Omnicity isn’t the only company trying to recognize the potential in a relatively open, untapped market. But companies need to grow the right way. If the government insists on being involved, they need to do their homework.

What do you think?

Labels: Economy, Omnicity, Rural Broadband

posted by Unknown at 5:15 AM Link to this Article  0 Comments

Tuesday, October 4, 2011
The 2009 stimulus bill earmarked more than $7 billion for broadband grant funding. Most of the money was allocated to the Commerce Department and the Agriculture Department. According to a report put together by House Republicans, of the $4 billion so far made available, only $138 million had been spent by the end of 2010. The Republicans have asked about the status of the rest of the money.

Because no clear answers have thus far been provided, the GOP is putting forth a bill this week requesting that some of thegrant money targeting broadband expansion be rescinded. And, really, why shouldn’t they?

Proponents of the funding will cry foul, lamenting that the money is necessary for building economic growth in rural areas. In fact, several political campaigns have made increased access to broadband a key campaign platform. But if the GOP report is accurate, why has so little of the money been spent? Who has oversight responsibility to ensure that projects are planned and executed properly?

Language in the report states that the lack of implementation is equivalent to, “putting the cart before the horse.” The report also raises concerns that, “some cable and phone companies believe awards have been issued for projects that substantially duplicate their existing service areas.”

Look at it another way: If you were running a business, wouldn’t you want to know that the money set aside for building your company was being used properly? The need for expanded broadband access is indisputable; the key is ensuring that the money to build the networks is applied effectively.

What’s your take on the subject?

Labels: Broadband Plan, Economy, Stimulus

posted by Unknown at 10:25 AM Link to this Article  0 Comments