Thursday, February 19, 2009

Omnicity Carrying Wireless Broadband to the Heartland

Omnicity is content to declare that the corporation has now finished its earlier declared Agreement and Plan of Merger, as entered into among the corporation, Omnicity purchase Co. and Omnicity Incorporated and pursuant to which the corporation has now acquired from the shareholders of Omnicity Incorporated all of the issued and outstanding shares and warrants of Omnicity Incorporated in consideration of, among other matters, the issuance from treasury by the corporation of an aggregate of 23,000,000 restricted common shares.

Omnicity supplies advanced services of voice video and data, in un-served and underserved little and rural markets in the Midwestern United States and is planning to be the premier consolidator of rural market broadband nationwide. Omnicity's strategy is to provide a total and be the leading rural wireless internet service provider (WISP) in the United States.

Omnicity's value proposition is providing internet access in rural America at significantly lower cost than wire or fiber optics. In the future Omnicity will also provide other value-added services for its customers including telecommunication (VOIP) and video on demand.

Since its inception in 2003, Omnicity has expanded rapidly to the largest rural ISP in the Midwest through purchases and organic growth. Management plans to accelerate its rapid growth through ongoing purchases of littler regional service providers and continued organic growth.

Omnicity has proven its business model to be very successful on a regional basis and is planning to grow nationally through a strategic alliance with the nation-wide Rural Electric Membership Cooperatives (REMCs) and regional governments. In addition to extending its reach geographically, Omnicity plans to expand its offering to a 'bundled' total wireless broadband solution. The combination of these two strategies supplies an opportunity for growing subscribers and growing revenues per subscriber for the foreseeable future. Management estimates the market for rural and little market service to be approximately 40 million homes.

Omnicity's business is very scalable and uses industry standard equipment. This allows for efficient use of capital and low overhead. The use of a centralized billing and management system further improves the operating efficiencies of the consolidated businesses.

Omnicity has an experienced management team with extensive wireless broadband/ISP expertise as well as the expertise to consolidate large numbers of businesses through its roll-up strategy.

Verizon expected to launch 4G next year

Verizon Communications' chief technology officer published on Wednesday about the company's plans to build 4G wireless broadband network that will go live by 2010.

Verizon will start testing the service this year and launch it to the public in at least 25 to 30 markets in the United States by 2010, CTO Dick Lynch stated in an interview with CNET News after his keynote speech Wednesday at the 2009 GSMA Mobile World Congress.

"We are modeling the roll-out after our EV-DO deployment. So we expect to get to about the same level in the first year of deploying LTE that we got with EV-DO, which is about 25 or 30 markets. That is probably a reasonable estimate," he stated, referring to the Long Term Evolution network.

Verizon will carry on to build the 4G wireless broadband network and expects to cover the continental United States and Hawaii with the new wireless broadband network by 2015.

The network will use 700MHz wireless spectrum that Verizon acquired in the Federal Communications Commission's auction last year. The company declared in 2007 that it planned to use a technology call Long Term Evolution to build its next-generation wireless broadband networks.

various GSM operators around the world have also declared plans to use LTE, which means that Verizon 4G wireless subscribers will eventually be able to roam globally.

Verizon has been testing the service in various areas in the United States including Minneapolis, Columbus, Ohio, and northern New Jersey. It's also been working with Vodafone (Verizon Wireless' co-parent) and China Mobile to test deployments in other parts of the world, including Budapest, Hungary, Dusseldorf, Germany, and Madrid, Lynch stated.

The wireless spectrum that will be used to build the new network will be fully available in June after all United States broadcasters finish transitioning to digital TV signals. Congress recently pushed back the deadline to switch to digital TV broadcast from this week to June.

In its initial trials, Verizon says that it has demonstrated peak download speeds of around 50Mbps to 60Mbps. Average download speeds are likely to be a lot lower since the wireless spectrum is a shared medium. Still, the network will be much faster than the average speed of Verizon's 3G EV-DO service, which typically tops out at 400Kbps to 700Kbps.
Lynch also declared major equipment suppliers that will build the new network. Telecom equipment makers Ericsson, Alcatel-Lucent, and Starent Networks will be used for the wireless and Internet infrastructure gear. Products from Alcatel-Lucent and Nokia Siemens will help provide the service layer of the network.
Lynch stated during the interview that Verizon Wireless still has plenty of headroom left with its 3G technology but that in the not-too-distant future consumers are likely to demand higher-speed wireless connections. Lynch wants Verizon to be ready for that.

Demand will likely come from consumers who want to attach a slew of consumer electronics and other devices to the Internet wirelessly, he stated. E-readers are good examples of devices that will be connected wirelessly and will drive demand for higher bandwidth.

Wireless connectivity to the Internet is also expected to be built into other products, such as digital cameras and even medical devices.

"In the not-so-distant-future, any and all devices will have LTE embedded in them," Lynch stated during his speech. "We are seeing a new generation of converged devices that will let people do a lot more than we've seen so far."


One potential problem Verizon could face as it rolls out this new network has to do with customer support. During the Q&A section of the keynote, moderator Andy Zimmerman of Accenture asked Lynch how Verizon plans to deal with a likely deluge of customer support questions when the company allows people to use any device on the LTE network. Lynch essentially put the onus back on the consumer. He stated that the wireless broadband market will evolve to be more like the PC market and that customers will expect to troubleshoot more of their own problems--rather than walking into a Verizon Wireless store or calling customer support like they do today to fix problems.

"Consumers will have to take more responsibility" for troubleshooting, he stated. "It's a harsh message, but a factual message."

Tuesday, December 30, 2008

Martin cancells smut filtering on free wireless broadband plan

The Chair of the FCC, Kevin Martin, called Ars Technica today to let us know that he has changed his proposal to release a free wireless mobile broadband service with an anti-smut policy. In an effort to corral more votes, Martin has already circulated a new version of the plan, one that removes the controversial smut filtering requirement.
Why the change? "I'm saying if this is a problem for people, let's take it away," Martin said. "A lot of public interest advocates have said they would support this, but we're concerned about the filter. Well, now there's an item in front of the Commissioners and it no longer has the filter. And I've already voted for it without the filter now. So it's already got one vote."

"Got anybody else?" I asked him.
"Not yet," Martin stated with a chuckle. Then he expressed a bit of impatience with his four colleagues. "This is an item that has been pending at the Commission for several years, that the Commissioners were originally critical of not having moved forward faster," he said. "Other Commissioners said, 'We're overdue; we've got to do this.' But when an actual item is put forth where you have to make a hard decision, they say, 'Well, I'm not so sure what I want to do anymore'."

The free porn is comming!

As we have been reporting for some time, the FCC's outgoing boss has been championing a proposal to auction off a hefty chunk of the Advanced Wireless Services 3 band (2155-2180MHz) for a free service that (until now) was to come complete with smut filtering.

The license winner would be required to offer the service at a minimum 768Kpbs; it's obviously not the fastest rate in town, but it meets the FCC's new and improved definition of "basic" wireless broadband. The provider will have to honor a Carterfone-style rule that allows any application or device to connect to the network, and the license will last for ten years, with ten-year renewal periods. The licensee must release coverage to half of the US population within four years and reach 95 percent of the country by the end of the first decade.

What Martin calls a "lifeline wireless broadband service" certainly has its supporters, but it has had plenty of detractors, too, including the wireless industry, the Bush administration, key Republicans in the House of Representatives, and civil liberties advocates who have all but called the scheme government-sanctioned censorship.

But Public Knowledge, Consumers Union, and the Media Access Project, among other groups, have suggested that the basic idea, sans filtering and bolstered by stronger open access requirements, has potential. "We appreciate the potential of a new service that could provide a genuine alternative to the current wireline cable modem/DSL duopoly," they have written.

Martin wanted the FCC to vote on this issue at an Open Commission meeting scheduled for December 18 but then bowed to Congressional calls for its cancellation. The FCC is scheduled to meet via audio conference on Tuesday, but there are no agenda items attached to the event. That will be Republican Commissioner Deborah Taylor Tate's last meeting.

"Tate was one of the Commissioners who I thought was most likely to be supportive of the filtering concept," said Martin. "She's been very involved in children's issues and I think that she had spoken favorably in the past of this idea of the filter for children."
The filter concept is history now. As for the changed proposal, the agency is scheduling another Open Commission meeting for January 15. That may very well be Kevin Martin's final formal FCC appearance, and we have no word yet on what dockets will come up during the meeting.

"Typically in January all the Commission does is do reports on the status of the industry," Martin said. "That's what we've done for the last few years, saying 'Here's what the Commission has been trying to achieve. Here's where we are'."

But the Commissioners could give the go-ahead to the re-smuttified free wireless broadband plan at any time—assuming Martin gets at least two more votes for his new proposal, and gets them quick.

Wednesday, December 10, 2008

Can The FCC Get Free Wireless Broadband Internet To Work?

The FCC is taking another attempt at constructing a legistlation that attempts to form a free nationwide wireless broadband network to encourage the adoption of broadband. The idea is not new, and the last proposal failed miserably, so it begs the question: Why will it work this time around? To find out the answer, we asked John Muleta, a former head of the FCC's Wireless Telecommunications Bureau and co-founder of VC-backed M2Z Networks, which plans to participate in the auction and use the spectrum to offer a two-tiered network, one that is free and supported by advertising, and another higher-speed network that costs a fee.

The proposal, written by soon to be leaving FCC Chairman Kevin Martin and will be voted on in 2 weeks, will require the winner to build out free broadband access in 95% of the country within five years. To show just how serious he is about the conditions, Martin added this caveat: if the company that buys the license fails to meet those requirements, the FCC will reclaim the spectrum and make it available to anyone that might have a better chance at accomplishing the goal, the WSJ reports. Commissioners will decide whether or not that provision makes it into the final item. The AWS-3 spectrum, referred to as "white spaces," has been the source of a long-brewing battle that's pitted startups and some tech companies against carriers, others who use fear the services will interfere with the ones they provide today. Companies like Google, Microsoft and Motorola have been eyeing the spectrum for some time, and about one month ago the FCC voted unanimously to sell the spectrum at auction.

We spoke with Muleta recently on how his plan diferentiate itself from others that have failed previously. Think of it as a good, better, best scenario. Muleta compares it to having high-quality cable or satellite television in the living room, but relying on free, over-the-air TV in the bedroom. "It doesn't matter what income you have," he said. People might prefer cable broadband at home or in the office, but when they leave those networks, free internet would fill in those gaps. But previous FCC proposals have failed and some of the companies that have been trying to provide municipal Wi-Fi for years have either folded or are spinning their wheels at best. Muleta thinks a new entrant can make it work. "Access to the cloud is a duopoly, there's no competition." To be sure, it will be a herculean task to build out this network within five years, but Muleta thinks the key is in having nationwide scale, something municipal Wi-Fi efforts didn't have.

M2Z Networks won't disclose how much funding it has, but it's backed by a group of heavyweight investors including Kleiner Perkins, Charles River Ventures and Redpoint Ventures. The FCC hasn't said if there will be a minimum bid requirement, or how much they expect to raise from the spectrum's sale, but typically a nationwide license like this would be in the millions, if not billions. Muleta said he fully intends to bid on the spectrum if the agency "allows for technology neutral use" and doesn't put rules in place that would preclude a new entrant from accessing the AWS-3 spectrum. Martin's plan is widely disliked by incumbent wireless and wired operators who see it as a threat to their existing revenue streams. But Muleta argued that the general thrust of any FCC policy should be to create more options for consumers.

Tuesday, December 2, 2008

Federal Communications Commission to vote on free wireless broadband Internet in the USA

Free wireless broadband for America comming closer to reality: The plan, after two years of debate, is finally on the calendar for a full vote by the Federal Communications Commission.

Assuming the plan is approved at the FCC's Dec. 18 meeting, one of the agency's last before President-elect Barack Obama takes office, free wireless broadband could become reality within a year.

First proposed in 2006, the plan calls for a chunk of airwaves called AWS-3 (now idle) to be used for wireless wireless broadband across the USA. Under terms contemplated by the FCC, the winner of the AWS-3 auction would have to reserve at least 25% of network capacity for free wireless broadband.

The winner would be allowed to charge for other services, including premium wireless broadband that would offer faster speeds.

Assuming there are no last-minute snags, the AWS-3 auction will take place next year.

The Federal Communications Commission plans to inforce several conditions. Among them: The winner will be required to launch free wireless broadband with a filter that automatically blocks adult content. Users can remove the filter once they've confirmed that they are at least 18 years old.

Federal Communications Commission Chairman Kevin Martin has championed the idea of free wireless broadband. Martin is particularly worried about rural areas, where dial-up and satellite-based Internet still rule. Dial-up isn't fast enough to handle interactive fare, including video streaming. Satellite has the muscle, but wireless broadband-strength speeds can cost $100 or more a month.

About 38% of rural households have wireless broadband. In urban and suburban areas, where competition for customers can be fierce, the numbers are a lot higher, 57% and 60%, respectively. Martin says free wireless broadband can help bridge the gap. "This initiative brings with it the promise of a free basic wireless broadband service to 100s of thousands of Americans who currently have limited or no access to the high-speed Internet," Martin said in a statement prepared for USA TODAY.
Big wireless carriers, which stand to lose customers — and profits — if free wireless broadband takes off, have criticized the FCC's plan.

The harshest critic is T-Mobile. The carrier paid $4 billion two years ago to buy the spectrum that abuts the AWS-3 block. T-Mobile claims the FCC's plan will cause service disruptions for its customers. The Federal Communications Commission disagrees.

Despite opposition from incumbents, the plan has a number of strong supporters. Chief among them is the company that dreamed up the idea initially, M2Z, a wireless start-up backed by Kleiner Perkins, the big Silicon Valley venture capital firm.

Milo Medin, M2Z's co-founder and a wireless broadband pioneer, says that in addition to being a big positive for consumers, the plan is consistent with Obama's belief in the power of private-public partnerships. While free wireless broadband alone won't close the divide between digital haves and have nots, Medin says it's a good start.

Wednesday, November 19, 2008

Will consumers slash spending on wireless broadband?

As large employers, such as Citigroup, prepare for massive firings, the economic slowdown is starting to hit home for customers fearing the loss their work places and already searching for ways to tighten their belts.

The recent spike of bad earnings from all kinds of customer companies, like coffee giant Starbucks, tell us that customers are nervous about the economy. And it looks like customers will continue to be slow about spending money over the next several months. Last week Nokia, the largest maker of mobile phones in the world, announced it's already seen sales slip, and it projected that sales will likely continue to be weak in the fourth quarter and into 2009.

While it's clear that customers are cutting back spending money on certain luxuries like lattes and new cell phones, I wonder if they are also searching to cut spending money on monthly services, like wireless, broadband, and cable TV. I recently looked at my stack of monthly bills to find where I could trim some fat from my budget, and I realized that aside from my electric bill, my cable/broadband and wireless phone bills are my top money suckers every month.

managers from some of the nation's largest wireless and broadband companies have said publicly they don't expect to see huge numbers of people canceling service. For one, wireless broadband services have become staples in American culture. And second, most people are under some kind of contract for one, if not all, of these services. So canceling their service outright could end up costing them more.

I realize I couldn't do without my cell phone or wireless broadband services. But maybe I could manage with less.

That's exactly what CEOs from Sprint Nextel and Verizon Communications have said they expect people to do over the next few months. They expect to see customers cut back their spending money somewhat by cutting back on services. This might mean reducing the number of voice minutes on a voice plan or cutting down the number of channels received as part of a cable TV service. Or maybe people will downgrade from a higher-speed broadband connection to a slower connection for a better price. Perhaps it means getting rid of a traditional voice landline or even a second voice over IP line.

Monday, November 17, 2008

Sprint claims local wireless broadband service is getting faster

Quicker response times and the ability to do more with Sprint wireless products are the upsides of an upgrade in wireless broadband service in the Chillicothe market, company spokeperson claimed this week.

"In Chillicothe, we converted the market to
wireless broadband and expanded network coverage," claimed Joe Holibaugh, general manager for iPCS Wireless, a Sprint affiliate in Ohio. "Users in the area can enjoy blazing fast Internet access virtually anywhere."

Sprint Mobile wireless broadband with EV-DO Revision A technology, when combined with compatible devices, will allow Users to send and receive e-mail with large file attachments, access the Internet more quickly and make use of streaming video and other real-time applications while on the go.

"The Sprint Mobile wireless broadband Network offers the speed and coverage to get what you want now," claimed Holibaugh. "Users can download video, music or access the Internet on the go, and business professionals can download files, upload documents and retrieve and send e-mail without being tied to their desks."
According to Spencer Bradley, marketing manager for Ohio, the new upgrades offer several advantages and opportunities.

An important advantage, specificaly for businessmen who deal with sensitive information, is that the network uses a secure, encrypted connection. This means users can utilize the wireless connection on compatible devices with a greater sense of security than using a laptop in a public WiFi hot spot.

"With this technology, you're less open to interception," Bradley claimed.
Likewise, the technology allows users to do on their PDAs and smart phones the type of work that previously demanded a laptop computer to handle. Besides making it easier for business travelers to take their work with them in compact fashion - especially in a business travel climate in which many airlines charge extra based on the number of bags a person travels with - the technology helps businessmen make better use of their time on the go.

"For businessmen, you can leave the office and still be productive," Bradley claimed.
The wireless broadband service expansion into Chillicothe is part of an ongoing network upgrade affecting many Ohio markets. Bradley claimed Chillicothe was lucky to get the expansion this year, since it was originally projected to take place in 2009.

Holibaugh claimed the timing was lucky for the company, with new
wireless broadband products that make use of the technology - such as the Samsung Rant and Blackberry Curve 8330 - becoming available to consumers just in time for Christmas. The new service, he claimed, meets their needs.

"Users want to browse the Internet on their phones and they want access to e-mail and video at wireless broadband-like speeds," he claimed.