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nevadabusinessreport.com            December 2006 · Volume 1 · Issue 9   
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Booted-Up Hill

Internet provider helps Virginia City jump the digital divide

Story by: Linda Fine
Cool guys: John Zurwell, left and Scott Morgan of High Speed Networks, have helped Virginia City get connected. They’ve erected antennas, like the one on the roof of their office, to bring Internet service to the area. - Photos by Lisa Tolda
Cool guys: John Zurwell, left and Scott Morgan of High Speed Networks, have helped Virginia City get connected. They’ve erected antennas, like the one on the roof of their office, to bring Internet service to the area.

With the help of High Speed Networks, LLC, Virginia City and Gold Hill residents and businesses now have access to wireless services. Suddenly, the small towns happily have jumped the digital divide as they scamper without remorse straight into the heart of the 21st century — a fact which makes High Speed Networks President Scott Morgan justifiably proud.

Both of these towns, like most in rural Nevada, Morgan says, were passed over by the big providers, and deemed too small to be profitable. “From a market standpoint, we saw a need to provide high-speed Internet to unserved rural communities — typically areas that have no cable or DSL connection.”

Having connected Carson City to wireless Internet, Morgan decided his next conquest would be Virginia City. “Being the entrepreneurs that we are, we talked with many of the city officials and learned there was definitely a need.” Morgan discovered many telecommuters in Virginia City, all longing for connectivity with the outside world.

He adds that he and associate John Zurwell are not looking to compete with other phone and cable companies, but his 25 years in Internet technology told him that connecting Virginia City was doable and not only that, it was sure to make money.

“We were profitable in the first 90 days,” he says. “And plan to continue to be profitable. We will be seeking business partners in underserved areas like Hawthorne or Yerington. We have the technology and the wherewithal to deploy a network in an unserved community and they can be profitable with as few as 50 customers.”

According to Morgan, the company now has 135 customers in the three areas it serves: Gold Hill, Virginia City and Washoe Valley. High Speed Networks subcontracts with a Fernley company, Webb Enterprises, to assist with installation.

In Virginia City and Gold Hill, monthly residential rates range between $29 and $49; business customers, because of the difference in the size of required bandwidth, can expect to pay from $59 to $199.

The Internet gateway to the region is located in the Virginia City RV Park, a strategically positioned spot. With connectivity to the Internet in Reno bounced from mountain top to mountain top until it reaches the Virginia City gateway, individual hook up is as simple as extending the signal wirelessly to a customer’s home or business where it is captured by an antenna.

Each antenna is about 10 inches high and can be mounted either inside or outside. The antenna is then wired to a customer’s computer and instantly, a high-speed wireless connection is available.

Although all of this technology sounds easy, the reality is fraught with events that sometimes keep both Zurwell and Morgan at attention. While his background is in networking, Zurwell says that the technology, instead of being LAN (local area network) is a slightly different transport mechanism (wireless) but the problems are similar to a large corporate network.

Should a problem arise, Zurwell is notified via his cell phone and the trouble shooting usually can be handled remotely. “For example,” he says, “people go on vacation and unplug their computers and our antenna. We’re then notified and I respond immediately.” He says he was able to manage the network without a hitch recently when he visited family in the East.

Zurwell and Morgan both say that their product lends itself to emergency situations. “You can drop our WISP (wireless Internet service provider) in a box anywhere in the world and activate it to provide voice data and video,” Morgan says.

By way of example, he paints a concise word picture. “A hurricane comes along and they have no communication. Our box can be dropped there with a generator, some diesel fuel and a satellite and they’re up and running again. Imagine the value of that in a gym in New Orleans where 500 people are without communications.”

Describing the company as service oriented, Morgan says a major goal is to build a relationship with a customer that can continue forever. Besides the obvious plus of being able to quickly and conveniently connect to the Internet, Morgan cites several situations where his company shines:

• Distance learning for home-schooled children offering them a broader range of educational tools.

• Seniors and the disadvantaged are now able to keep abreast of events via the Internet while staying in touch with the outside world.

• Tourists now have access to the Internet via “hot spots” — computers strategically located in various public locations.

And what is in store for High Speed Networks?

“We expect to take this to rural areas all over the world,” Morgan says. “There’s a big need. It goes from unserved communities on the edge of second- and third-tier towns to jungles anywhere in the world.”

But first, they are looking at partnering with angel investors to secure the necessary capital to grow their business. Initially, High Speed is targeting least 1,000 rural locations — many topographically challenged. A strong prospect A strong prospect within the next 60 days is a small town in Mississippi. “But the whole operation will be controlled from Virginia City,” Morgan says.

 
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CONNECTIVITY REVVED IN RECENT YEARS

High-speed Internet connections reached nearly 38 million subscribers in the U.S. in 2004, according to the most recent numbers compiled by the Federal Communications Commission. The 2004 calendar year saw a 34 percent increase in broadband subscribers for residential, small and larger business accounts. Broadband is available to 99 percent of the U.S. population. The FCC found more than one service provider in 83 percent of the nation's Zip codes.

High-speed increases broken down by delivery method follow.

Technology Type 2003 2004 Percent Change
       

ASDL

9.5 million

13.8 million

21

Other wireline

1.3 million

1.4 million

4

Coaxial

16.4 million

21.3 million

15

Fiber

602,000

697,000

9

Satellite

367,000

549,000

30

Total lines

28.2 million

37.8 million

17

 

Source : Federal Communications Commission, 2005


 

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