Skyway USA shoots for the stars with satellite broadband service

Friday, October 12, 2007

Photo by Ron Bath

George Dick, CEO of Skyway USA LLC, demonstrated how users of his company’s satellite broadband service can install and “find” the satellite themselves using a skybeeper and earpiece.

Business First of Louisville - by Sarah Jeffords Business First Staff Writer

Millions of rural households across America have yet to transition into the age of high-speed Internet access, often because cable providers and phone companies have not invested in the infrastructure to take their services to more remote areas.

But satellite broadband has emerged in recent years as another option for those coping with slower dial-up service.

Louisville's Skyway USA LLC is gearing up to become a dominant player in the field. The company offers a satellite broadband package that customers can purchase online and install themselves.

At an initial cost of $124 for equipment and service activation, plus a monthly service fee -- $29.99 for the entry-level package -- the company is touting itself as a low-cost alternative to existing satellite Internet providers such as WildBlue and Hughes Network Systems LLC.

WildBlue's entry-level monthly fee is $49.95 with an upfront cost of $328.95 for equipment and installation. Hughes' monthly service costs $59.99 with a $299.98 equipment and installation fee.

Rates for all companies, found on their Web sites, include promotional discounts.

Operating in trial mode

So far, about 450 customers nationwide have signed up for Skyway's service. But CEO and investor George Dick said he believes that is just the beginning. Many customers signed on during a trial phase that began when company founder and president Dwayne Hay formed Skyway in March.

Since then, Skyway officials, including Dick -- who became CEO in July -- have focused on fine-tuning operations.

Technical equipment, which is manufactured in Sweden, has been tested. Billing systems have been implemented and a customer-service center and warehouse has been established in Jackson, Ky., southeast of Lexington.

Plus, Skyway has had a capital infusion, about which company officials declined to release details, and it brought on new advisers, including:

• John Bohn Jr., former owner and president of Holdaway Medical Services Inc.;
• Daniel Mongiardo, a physician and candidate for Kentucky lieutenant governor in the upcoming November election;
• Merrily Orsini, managing director of marketing and communications firm Corecubed;
• Bill Strench, a member of the Frost Brown Todd LLC law firm;
• Gerald Tyrell, who has held leadership positions with First National Bank of Louisville, Porcelain Metals Corp. and now Venture Resources Inc., a business brokerage firm.

Skyway is poised for a major launch of the service on Nov. 1, when it will roll out a dealer program and aggressively target not only residents in the Bluegrass, but also customers across the country.

Starting from scratch

Hay and his brother, Michael Hay, founded Skyway in 2003 in Jackson after spending more than two decades as distributors for satellite TV.

Then, the company took a dive when the satellite provider it had contracted with went bankrupt, leaving Skyway with customers but no service.

Attempts to reorganize the company through a reverse merger that would take the company public proved to be a wrong move.

Dwayne Hay chalked it up as a learning experience and chose to seek private investors.

The ensuing series of events is a lesson in how relationships can help get the deal done.

Hay put in a call to former classmate and friend Mongiardo, who contacted longtime business acquaintance Don Smith, retired president and CEO of international business consulting firm Smith & Co. LLC.

Smith contacted Dick, a former employee of his who now owns Four Colour Imports Ltd., a Louisville printing company.

Smith, chairman of the advisory board, also has been instrumental in pulling together the collective expertise needed to take the Skyway concept forward -- and not at a snail's pace.

Goal is 1 million customers in five years

Projections call for 10,000 customers within six months. Within two years, that number is expected to jump to 100,000 customers, and 1 million by 2012.

Company officials think they can sell as many as 5,000 systems per month via the Internet by using search-engine optimization techniques that will push the company's Web site higher in Internet searches.

Although its sounds lofty, it's a realistic goal, according to one adviser.

Strench, who concentrates his law practice in the venture capital and financing sectors, said he has "scrutinized the numbers," and believes Skyway officials are on target.

"There clearly is a demand for this type of product," he said. "When you talk about Internet service, it's almost like TV -- an essential of a household."

The question is not whether there is an extensive market for satellite broadband, Strench said, but whether Skyway officials can reach those customers.

So finding the right marketing approach will be crucial, along with establishing a strong distribution network.

But Strench believes Skyway officials have an opportunity to leverage a lot of local talent. "I'm real impressed with the people who have affiliated with the company," he said, adding that the caliber of the management team and advisory board influenced his decision to join Skyway.

---

Skyway USA LLC

Business: Provides satellite broadband service to rural areas
Headquarters: 10900 Plantside Drive, Suite E
CEO: George Dick
Employees: 16, including eight in Louisville
Web site: www.skywayusa.com

---

How it works

Skyway USA leases satellite space from SES Americom, the North American subsidiary of Luxembourg-based SES Global.

In addition, Skyway and Canadian partner Business Television co-own an "earth station" in Toronto. The teleport complex transmits information to the satellite.

Those two relationships allow Skyway to offer the satellite Internet service to rural households without having to build out a technical infrastructure.

To activate the service, customers receive a self-install kit with an external modem. For now, the service goes through customers' landline phone connection. A technology upgrade is in the works that would avoid tying up phone lines.

The kit also includes a skybeeper, a proprietary device used to "find" the satellite.

The equipment is manufactured by companies in Sweden and then shipped to Skyway's Jackson, Ky., warehouse.

LINK

Event to celebrate 13 'hot' local companies (Louisville Kentucky)

Congratulations to our retail partner.

Thomas
800 761 9149
tomw@bbinabox.com
www.bbinabox.com

# # # # # #

Business First of Louisville

Enterprise Corp. and the High Impact Program will hold an event this week to celebrate the success and potential of 13 area companies.

The event, called The Hot Dozen Holiday Showcase, will be held from 4:30 to 6:30 p.m. on Wednesday, Dec. 12, at the Old National Bank in Preston Pointe, 333 E. Main St.

The companies that will be recognized are: 3DR LLC, Conexxus, Dormbuys.com, Fulfillment Concepts, Genscape, Maximum ASP, Modern Gigabyte, Nomad Innovations, Peptides International, Resonant Vibes, Skyway USA, Smoothstone IP Communications and ZirMed.

Louisville Metro Mayor Jerry Abramson and the clients and partners of Enterprise Corp. and the High Impact Program will be in attendance.

The Hot Dozen Holiday Showcase is free to attend, but an RSVP is required by Monday, Dec. 10.

The High Impact Program is a public-private partnership formed by Louisville-Jefferson County Metro Government and GLI that identifies and serves fast-growth companies. The Enterprise Corp. is a division of GLI that supports entrepreneurship.

LINK

Rural Internet Connections In U.S. Falls Short of Other Countries

07/09/2007

In New Brunswick, Canada, 90 percent of the people living in rural communities have high-speed internet connections. In the U.S., only 38 percent of rural residents have broadband available.

Broadband connections have been increasing everywhere, but only a little over 30 percent of rural Americans have fast-speed Internet in their homes, according to the Pew Internet & American Life Project.

Rural Americans are less likely to use the Internet than people living in urban or suburban regions — and that is largely because they have less internet connections. Only 60 percent of rural residents use the Internet from any location, compared to the national average of 71 percent.

There is a large gap between rural and urban residents in the speed of their internet connection,according to a survey conducted by the Pew Internet and American Life Project. Living in a rural community is a bigger impediment to broadband connection than either race or income, according to Pew — and although rural Americans are quickly signing up for broadband connections, they are still two years behind the adoption rates in suburbia or the city. Only 38 percent of rural residents have a broadband Internet connection at either home or work, according to Pew. In the cities and suburbs, 55 percent have high-speed connections.

Geography, more than race, determines who has access to broadband Internet connections. According to Pew, African-Americans and whites with similar levels of education and income have similar levels of broadband use. But rural Americans of all races, incomes and education levels are significantly less likely to have speedy Internet connections.

Meanwhile, an attorney specializing in communications policy told the National Rural Assembly that rural residents in other countries had better access to faster broadband service. Mark Lloyd, a senior fellow at the Center for American Progress, said the “great promise (of broadband service) is being realized in New Brunswick, Canada, and Tono, Japan, and in the farm country of south west Ireland. Great strides have been made in these countries since 2000. Great strides have not been made in Mississippi and Utah and Oklahoma and Kansas."

In New Brunswick, Canada, Lloyd said, a combination of government support and private investment had built out broadband connections to 327 small communities. Now over 90 percent of New Brunswickers have broadband access — at speeds that exceed that of cable modems and DSL in the U.S.

Only 38 percent of rural Americans have broadband connection either at home or at work. In urban areas, 58 percent of the people have fast-speed connection at some point during the day, according to the Pew Internet and American Life Project.

Mark Lloyd, far left, testified to an informal meeting in Congress during the National Rural Assembly.

Photo: M.A. Pember

Dial up is out; broadband is in for most of America, according to Pew.

[source]

No Child Left Offline Receives National Award

At the annual meeting of governors representing the Southern Growth Policies Board, ConnectKentucky’s No Child Left Offline initiative was recognized from an applicant pool of 200 with the 2006 Southern Growth Policies Board Innovator Award.

“Kentuckians must dream big and plan not only for ways to compete in the knowledge-based economy, but for ways to excel." - Gov. Ernie Fletcher

“Kentuckians must dream big and plan not only for ways to compete in the knowledge-based economy, but for ways to excel,” said Gov. Ernie Fletcher. “As ConnectKentucky works with local leaders to implement the Prescription for Innovation, we envision that not only will Kentucky provide world-class technology for its citizens and businesses, but that individuals and companies around the globe will come to recognize Kentucky as a center for technological and economic prosperity.”

No Child Left Offline brings together public and private partners to bridge the gap for the 215,000 children in Kentucky who do not own a home computer. The initiative is the most comprehensive of its kind undertaken by any state in the nation, and ensures that thousands of usable computers are saved from landfills and used for the benefit of Kentucky families.

Each year, the Southern Growth Policies Board honors innovative Southern initiatives that are improving the quality of life in the region. Southern Growth Policies Board is a nonpartisan public policy group formed by the region's governors in 1971.

Launched in January 2006 by Gov. Fletcher as part of Kentucky’s Prescription for Innovation, No Child Left Offline has set a precedent for delivering quality technology hardware and software to Kentucky families who need it most. Through the program, surplus government computers are refurbished and distributed to the homes of eighth graders who otherwise would not have a computer at home. For each computer refurbished, Microsoft™ is providing Windows XP™ and MS Office 2003™ while CA, Inc. provides a software security suite. Additionally, Lexmark International is providing a new ink jet printer for every family that receives a computer.

Kentucky's Prescription for Innovation is a comprehensive plan to accelerate technology growth, particularly in the areas of broadband deployment and technology literacy and usage. The initiative maintains four key tenets for impacting statewide economic development:

• Full broadband deployment by the end of 2007;
• Dramatically improved use of computers and the Internet by all Kentuckians;
• A meaningful online presence for all Kentucky communities, to improve citizen services and promote economic development through e-government, virtual education, online healthcare; and
• Local technology leadership teams in every community to develop and implement technology growth strategies for local government, business and industry, education, healthcare, agriculture, libraries, tourism and community-based organizations.

Over the course of implementation of the Prescription for Innovation, statewide broadband availability and usage have increased by 33 percent and 45 percent respectively. An estimated 300,000 previously unserved households may now access broadband as private sector investment in telecommunications infrastructure has reached an unprecedented level in Kentucky. Currently, 82 percent of Kentucky homes may access broadband, which is a good indication that Gov. Fletcher's goal of 100 percent availablilty by 2007 will be met. Home computer ownership has grown by 17 percent and more than 100 counties are actively engaged in the eCommunity leadership process to establish a nine sector technology growth plan for accelerating technology locally. Moreover, the rate of Kentucky’s high-tech job growth is outpacing the national average.

ConnectKentucky, a nonprofit organization that promotes technology-based economic development in the commonwealth, is coordinating the project with operational support from the Governor’s Office for Local Development, Appalachian Regional Commission and the Department for Commercialization and Innovation in the Kentucky Economic Development Cabinet. Additional state support is provided by the Commonwealth Office of Technology and the Office of Surplus Properties, both in the Finance Cabinet, Kentucky Department of Education in the Education Cabinet and Kentucky Correctional Industries in the Justice Cabinet.

In initial distributions, which have been concentrated in the Appalachian region of Kentucky, No Child Left Offline has delivered nearly 1,000 refurbished computers and new Lexmark printers to the homes of selected eighth-grade students. Two thousand computers are set to be delivered by the end of 2006.

--------
About ConnectKentucky: Recently named as the nation’s top innovator in economic development by the U.S. Economic Development Administration, ConnectKentucky is leading the way into a new economy for Kentuckians. As an independent, technology-based economic development organization, ConnectKentucky works with businesses, government entities and universities to accelerate technology in the commonwealth. For more information, visit www.connectkentucky.org.

To learn more about the Southern Growth Policies Board and view their 2006 Annual Report: Innovation with a Southern Accent, visit www.southern.org/pubs/2006AnnualReport/Innovationlowres.pdf.

DVB-S2 Technology to Stimulate Demand for Broadband Interactive Services via Satellite

We are happy to be one of the first if not the first to integrate DVB-S2 (MP4) technology into our last mile solution here in the U.S.

Thomas William

VP Partner Solutions

Broadband in a Box

1302 Clear Springs Trace

Louisville Kentucky 40223

Direct: (502) 426.2067

Toll Free: (800) 761.9149

Fax: (502) 515.3710

Email: tomw@bbinabox.com
-------------------------------

30 March 2004

Orlando, Fla. - March 30, 2004: Northern Sky Research today released its newest market research and survey report entitled, "DVB-S2 Technology and Markets," which assesses the satellite broadcast and communication industry's second generation digital modulation and coding standard: This report concludes the DVB-S2 standard not only satisfies the needs of consumer direct-to-home broadcasters but also sets the stage for a paradigm shift in the delivery of broadband interactive services via satellite.

Based on interviews with numerous technology providers, this report provides an overview of the soon-to-be-ratified air interface protocol specification. The DVB-S2 standard is designed to promote development of interoperable technology and services and despite its European pedigree, like its DVB-S predecessor, it is poised to become an international standard widely-adopted by satellite operators and service providers around the world.

A survey of chipset vendors, equipment suppliers and system integrators indicated that 70% will launch DVB-S2 compliant products in the next 24 months in one of three target market segments: broadcast applications, interactive services and professional systems. Based on the data collected, revenues from the DVB-S equipment market in 2004 will reach an estimated $450 million with professional systems and broadcast applications accounting for approximately 45% of the total.

"Over the next five years, these market segments will grow more slowly than interactive services, and an increasing portion of satellite broadcast and communications equipment deployed will comply with the DVB-S2 standard," stated Gregory Peckover, satellite technology and marketing consultant and author of this report.

Although receiver chipsets will not be commercially available until the end of 2004 and products will not be on the market before the second quarter of 2005, projected annual DVB-S2 compliant equipment revenues are expected to reach $1.3 billion by 2009, with interactive services accounting for almost 70% of the total. High compound annual growth rates are expected given the tremendous economic incentive for satellite operators and service providers to reduce the per subscriber cost of space segment and terminal equipment.

Over the past ten years, researchers have continued to develop more spectrum efficient transmission and compression technologies. For broadcast applications such as business TV, the result is a potential three-fold increase in satellite transponder utilization. That is to say, only one third of the bandwidth is required to achieve equivalent picture quality and interference robustness.

For interactive services such as high-speed Internet access, the results are even more profound. "With the right combination of adaptive coding and modulation techniques, Ka-band space segment and web acceleration technologies, it is possible to increase broadband satellite system capacity by 150% to 450% and reduce service provisioning costs so dramatically that a viable business case now exists for addressing consumer and small business customers, in addition to large enterprises," noted Peckover.

[source]

FairPoint Goes Wireless To Reach 'Last-Mile' Customers

According to the New York Times, Telcos and wireless providers are losing upwards to 30,000+ subscribers and prospects respectively a month to retail last mile providers. Those numbers are only going to go up. The Broadband in a Box white label wholesale solution can stem that tide, where you can compete and win with a lower latency and cost and higher uptime solution today. You might as well have subscribers left to upgrade to your terrestrial solutions right?

Thomas William

VP Partner Solutions

Broadband in a Box

1302 Clear Springs Trace

Louisville Kentucky 40223

Direct: (502) 426.2067

Toll Free: (800) 761.9149

Fax: (502) 515.3710

Email: tomw@bbinabox.com
---------------------------------------

Posted: Jan 22, 2003

CHARLOTTE — Editor's note: Charlotte Beat is a regular feature on Wednesdays.FairPoint Communications is going into the "Wi-Fi" business.

Hoping to capitalize on one of the hottest growth sectors in telecommunications, the Charlotte-based operator of rural local exchange companies said Tuesday that it would install 802.11b Wi-Fi standard wireless equipment for 20 rural communities.

FairPoint, which was founded in 1991, now operates 29 RLECs across 18 states, including Georgia, Florida and Virginia.

"We are continually looking for ways to provide advanced services to our rural customers, services that otherwise are not available from other service providers because of their economic considerations," said Bob Ingram, senior vice president of operations and engineering for FairPoint, in a statement.

Wireless local area network services revenues are expected to total $2.8 billion in 2002, up from $2.1 billion in 2001, according to Dataquest. Some 26.5 million wireless LAN units are expected to be sold this year, up from 15.5 million units in 2002, and growth is projected to be strong through at least 2007, according to Dataquest.

Using the 802.11b wireless service will enable FairPoint to offer high-speed Internet and data services to business users and consumers without having to install fiber or upgrade copper plant for digital subscriber line (DSL) services.

Extending high-speed services the "last mile" has proved to be an expensive challenge, especially for RLECs which service less densely populated areas.

In North Carolina, for example, the Rural Internet Access Authority has used a variety of grants to foster expansion of wireless and other means of high-speed service where telecommunications companies had declined to expand or upgrade.

BellSouth, meanwhile, has launched a high-speed wireless trial in Daytona, FL.

FairPoint chose to license equipment from KeyOn Communications. KeyOn has patent-pending technology for wireless data and operates a citywide network in Las Vegas.

FairPoint did not identify the communities where the service would be offered, nor did it specify costs other than to say the Wi-Fi offering would be a "high quality, cost-effective method to receive broadband."

Jonathan Snyder, chief executive officer of KeyOn, told The Las Vegas Review-Journal that FairPoint would offer the service first in central Ohio, upstate New York, Maine and Florida.

Snyder said the licensing deal is the first for KeyOn, which has some 500 customers in Las Vegas. KeyOn has been offering the service for about three months. The service is priced at $24.95 a month plus $50 for installation.

According to its most recent published figures, FairPoint has 245,306 lines, 123 exchanges, and more than 1,100 employees.

The company has not yet released fourth quarter earnings. Through the third quarter 2002, FairPoint reported a 1.7 percent drop in revenues, to $174.3 million, but did improve earnings before interest, taxes, depreciation and amortization to $33.5 million, up 11.3 percent. For the first nine months of the year, EBITDA hit $100.4 million, up 7.2 percent.

Through Dec. 31, 2001, FairPoint reported revenues of $235 million, EBIDTA of $124 million, and assets of $849 million.

Eugene Johnson, one of the company's co-founders, took over as chief executive officer of FairPoint a year ago and recently was named chairman of the board. He was executive vice president of corporate development before taking over as CEO. Johnson, a graduate of the University of North Carolina Charlotte, is a board member of UNCC's foundation.

[source]

Birmingham Michigan Pop's