Vol. 140 No. 19

Wednesday May 9, 2007

Companies look to provide broadband

By JOSHUA COFFMAN
Landmark News Service

As more companies make moves to provide wireless broadband in Owen County, Judge-Executive Billy O’Banion said Fiscal Court has put on hold the notion of establishing a county-funded wireless project.
And residents will likely soon have at least a couple of options for wireless broadband service in the county.
Part of the county already has one option for wireless Internet through a private company, and more providers will likely be available later in the year. Thus, O’Banion said private companies might soon provide the need for wireless broadband in the county.
CainPro Communications, based in Gallatin County, already has a tower located near Jonesville that can reach much of the northern half of the county.
Owner John Cain said the company has customers living as far away from the Jonesville tower as Kentucky Highway 22, near Owen County High School, who are getting good service.
He said the Jonesville tower was put up just days after a decision was made to do so, and the company’s expansion into the county could happen rather rapidly.
CainPro expects to add an additional tower in New Liberty within the next two weeks, and he said he has had discussions with O’Banion about adding another tower on top of the jailhouse in Owenton to stretch further south into the county.
Cain said the added towers would allow the company — which currently provides service in Grant, Gallatin and Boone counties in Kentucky, and Switzerland County in Indiana — to provide service throughout much of Owen County.
Another Kentucky-based wireless company, VVDS, Inc., based out of Elizabethtown, also plans to offer wireless broadband in Owen County by this summer.
This company, which currently provides service in Green County and will soon do so in Hardin County, recently purchased a tower in Monterey.
Russ Preston, manager of business development for VVDS, said all of Owen County could be covered by as few as four towers. He expects the company to offer wireless broadband throughout the community by July 1.
VVDS is looking for private investors to help raise $40,000 in start-up costs, with shareholders receiving 40 percent of net revenue as dividends, according to a letter Preston sent to O’Banion in March.
The letter states that the service could be up and running in the county within 30 to 45 days after acquiring the funds.
Preston said VVDS also plans to provide Internet-based telephone service that will offer local and unlimited long-distance calls for a flat fee, and it expects to offer IPTV, Internet-based television, by the end of the year.
VVDS plans to offer service throughout much of the state, and Preston said customers can use their laptops anywhere the service is available.
O’Banion said the Fiscal Court does not have to vote to allow VVDS to operate in the county; however, the company has promised to give county government 5 percent of revenues from within the county. The company also wants the county to allow it to place towers free of charge on county property, if it is determined such a property is a best fit for a tower.
But Preston said about a half-dozen residents have already expressed interest in allowing a tower to be put on their properties in exchange for free broadband service.
Preston said the start-up costs are needed from private investors for the project because Connect Kentucky, a non-profit group established by the state to advance broadband in rural area, had millions of dollars in grants and low-interests loans pulled back after dam problems were discovered on Cumberland Lake and resources were needed to address that.
Connect Kentucky had recommended for VVDS to provide service in Owen, Shelby and Henry counties, Preston said; the organization also secured a grant to provide broadband access in Monterey.
O’Banion said Southeast Telephone is currently setting up that service, which is expected be finished this summer.
Another possible broadband provider is AT&T, which acquired BellSouth earlier this year. During the merger, the company promised to provide DSL to any place where it currently has phone lines by the end of the year.
O’Banion said he has yet to hear from AT&T to get an update on the project as far as the county is concerned. A phone call to AT&T spokesman David Weller was not returned as of press time.
Both VVDS and CainPro service require adding a receiver to get broadband.
Preston said the VVDS service does not require a contract, but there is a $100 installation fee to cover the equipment. He said the fee can be paid up front or spread over several bills.
Cain said the CainPro service, which also does not require a contract, features equipment that comes in several price tiers, based on a residence’s proximity to a tower.
An indoor unit costing $90 can be used if a customer lives within 1,000 feet of a tower. Otherwise an outdoor receiver is used, with units costing $200 for residents within 5 miles of a tower and costing $249 for a receiver that can reach as far as 20 miles from a tower.
The VVDS residential service features 1 megabyte-per-second uploads and downloads for $29.95 a month; the commercial service features speeds of 3 megabytes per second at $49.95 a month.
CainPro service costs $29.95 a month. Cain said the service currently provides 1 megabyte-per-second upload speed and 3 megabyte-per-second download speed. He said those speeds will increase to 2 megabytes for uploads and 6 megabytes for downloads next week.


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