Entrepreneurial ISPs (especially wireless), take heed

We receive a number of calls from entrepreneurs and ISPs wanting to start a wireless Internet access network. They usually ask what areas need the service, info on tower availability, where would they be the most successful, and also if we happen to have any grant funding. They have usually looked at our Web site and understand that our mission is to work toward universal high-speed Internet access to every citizen of North Carolina.

Normally, the urban counties, metropolitan areas, larger towns and larger subdivisions have at least one type of high-speed Internet access whether it is by cable modem, DSL or wireless. A business case for these areas is easy to develop (with all those potential customers packed in together), so they already have service. The small towns, communities, crossroads and rural areas of our state are the areas lacking high-speed Internet access, yet they are the areas that need it the most. These are the areas that need to be served, but are the hardest to develop a business case for.

Tower availability is also harder to find in these areas. Most water tanks already have some form of wireless equipment on them and most communities have set up guidelines and fees for their use; some have very stringent requirements and hefty fees associated with them. Getting access to fire towers has also become more difficult and backhaul transport to these locations is very expensive. All of these hidden and obvious costs have to be included in the business plan for entrepreneurs interested in starting a new ISP. And don’t forget a billing system, support staff and back office operations. It adds up.

But let’s get back to the case of effective wireless in rural communities…

Another issue for ISP entrepreneurs is access to customers, which is one of the main problems in rural areas. Manufacturers often present a “best-case” scenario when they advertise their radio equipment. Some state that their equipment is line-of-sight, but then give exaggerated examples of five to seven miles of coverage from their antenna. Some say that their signals can “blast through trees.” (They just don’t say what kind of tree.) We need for them to run some trials in the thick pine trees of rural North Carolina. According to some of the wireless providers we have talked with, pine trees “eat radio frequency.” Besides the trees, there are other items that cause interference and affect the range and quality of the signals.

Even with these challenges, wireless will probably be the only way a number of areas in North Carolina will ever see service. The e-NC Authority supports wireless efforts and the challenges outlined here are not meant to be negative or against wireless service. When ISP entrepreneurs spend their money, time and effort to serve these areas of our state, we want them to be successful. Our intention is to assist those entrepreneurial ISPs in developing a thorough business case. And when it comes time to deploy, we want them to be successful.

As for grants, we do not have any available at this time. If the N.C. General Assembly provides us with funding this year, we will address the counties with the lowest connectivity as we have in the past. And who knows – hopefully wireless can be a part of that…