Connect with us

Wireless

Starry Hosts First Earnings Call, Says its Model Positions it to Compete Against Larger Players

Starry CEO assured investors that Starry’s technology model allows them to compete with other more established providers.

Published

on

Photo of Staryy CEO Chet Kanojia, from Starry

WASHINGTON, May 12, 2022 – In its first earnings call since becoming a publicly-traded company, telecom company Starry Inc. reported continued profitability and a desire to expand its services.

Starry, which uses fixed-wireless technology for the last-mile with support from a fiber-based middle-mile, merged with special purpose acquisition company FirstMark Horizon Acquisition Corp to go public in March. Its founder and CEO Chet Kanojia said on the earnings call Thursday that Starry has the potential to be a disruptor.

“The opportunity in broadband is to be able to disrupt the sector with extremely low-cost technologies, and to be able to achieve scale with less investment compared to traditional approaches that have been used in the past,” Kanojia said.

“This is not a concept company – we have found investors willing to finance our approach,” Kanojia said. “However, the business ultimately will require more capital,” adding that last quarter, the average user consumed 574 gigabytes of downstream and a substantial amount of upstream.

Kanojia also emphasized that urban and dense suburban areas continue to make up the majority of Starry’s consumer base.

“In order to succeed as a service provider, we need to be able to match speed and capacity,” he added.

Kanojia also said that connecting a new customer to the network costs around $100, and this is over years of improving and refining the process in order to keep the cost down.

In addition to operating the infrastructure, Kanojia said that Starry owns it as well, which has allowed the company to cut down on supply chain interruptions and exercise more control over how the technology is implemented.

“The underlying economic model remains extremely healthy and unchanged,” Kanojia said. “We continue to see the potential for raising the profitability.

“This gives us a lot of confidence that the underlying economic model works as intended and reinforced our desire to expand.”

Chet Kanojia will be the guest on Broadband.Money’s Ask Me Anything! series on Friday, May 13, 2022, at 2:30 p.m. ET.

WISP

Wireless Internet Service Providers to Connect More Fiber Points as Bandwidth Consumption Increases

‘The only way to get that density is to get fiber out there. That allows you to get more subs with your wireless.’

Published

on

Photo of Jay Anderson, chief technology officer of FiberLight

LAS VEGAS, October 6, 2022 – By employing more fiber points, wireless internet service providers can improve network performance and innovation, industry players at the WISPAPALOOZA conference told Broadband Breakfast.

Jay Anderson, chief technology officer of FiberLight, which has built fiber networks in several states, including Texas, Florida, and Virginia, told this publication as wireless internet service providers get more subscribers online, the existing connections to the fiber backbone can get congested without more densification of fiber points.

“The only way to get that density is to get fiber out there, and that allows you to get more subs with your wireless,” Anderson said.

Anderson said he expects WISPs to adopt a “hybrid architecture” moving forward. FiberLight’s Texan WISP partners have grown “leaps and bounds,” he said. “They’re using our infrastructure…to get that capacity out there…our job is to get as much of it out there, [at as high a] bandwidth as possible,” he added.

Mike Rowell, senior vice president of operations for Hilliary Communications, related some of his own professional experience with fiber to Broadband Breakfast. Hilliary provides internet, telephone, and television service across Texas and Oklahoma.

“We can see fiber helping us out tremendously in some areas getting us to a wireless access point,” Rowell said, explaining that a single fiber deployment can replace a less-reliable, multi-device connection to a hard-to-serve area. He said this strategy enabled his company to offer higher internet speeds and reach new customers. 

Rowell has worked in telecommunications for four decades. He said he has seen once-prohibitive costs for fiber-installation machinery plummet, which makes fiber a far more viable option than it previously was.

“Fiber – from just…two years ago – was totally different than today,” he said. “You can [now] have fiber splicers that can do a really, really nice job for under $3,000.”

Rowell also emphasized the importance of foresight and innovative business planning. “We never thought we’d be selling one-gig, and here we are selling it,” he said. “It’s going to be the same thing: We don’t think we’re going to be selling 10-gig, but we’re going to.”

Continue Reading

WISP

Wireless Internet Service Providers Facing Challenges Meeting BEAD Program Requirements: Experts

Hurdles WISPs face include defining reliable service, regulatory burdens, and financial requirements, experts say.

Published

on

Carol Mattey, principal at Mattey Consulting LLC, via Twitter.

LAS VEGAS, October 4, 2022 – Several requirements for providers receiving funds from the Broadband Equity, Access, and Deployment program present significant difficulties for wireless internet service providers, said experts at the WISPAPALOOZA conference on Monday.

The BEAD program, administered by the National Telecommunications and Information Administration, will allot $42.5 billion dollars to the states to promote broadband access. States will in turn issue awards from their allotted funds to “subgrantees” – such as wireless internet service providers – for broadband deployment and other projects.

“The biggest concern is the way that NTIA has defined ‘reliable broadband service’ to exclude locations that are served exclusively with unlicensed spectrum,” Stephen Coran, attorney in the broadband and communications practice group at Lerman Senter, told Broadband Breakfast Monday. “There’s nine million people who are getting broadband service that way. Many of them can’t get it any other way and the service is reliable.”

Areas covered solely by unlicensed spectrum are considered unserved by the NTIA. Carol Mattey, principal at Mattey Consulting LLC, told Broadband Breakfast Monday that although WISPs who operate such networks can apply for BEAD funding to alter their networks to meet the NTIA’s definition of “reliable broadband,” navigating BEAD’s complex regulatory framework will be difficult for many small providers.

“Most small providers don’t have the in-house staff or expertise to manage regulatory compliance,” she explained. “They’re…in the business of building networks. They don’t have people [who are] regulatory compliance experts.”

Mattey said small networks will have to adapt to overcome BEAD’s regulatory barriers. “They either have to acquire [regulatory-compliance] resources of share resources with others,” she said.

Possible financial hurdles

States or subgrantees must provide matching funds of at least 25 percent of each project’s cost. In addition, the NTIA’s notice of funding opportunity requires subgrantees to provide a letter of credit from a bank, totaling no less than 25 percent of the subgrantee’s award from the state.

Subgrantees receiving BEAD funding must also comply with Build America, Buy America provisions, which require construction material produced domestically make up at least 55 percent of total project cost – even if foreign sourcing would be cheaper. The NTIA is moving to waive some of these requirements for recipients of the NTIA’s $1-billion Middle Mile grant program.

Many subgrantees must also comply with the Davis-Bacon Act, which empowers the Department of Labor to set wage thresholds for contractors working on federally funded projects.

Continue Reading

5G

Johnny Kampis: Wireless Survey Shows 5G’s Role in Closing Digital Divide

5G has experienced a quantum leap in growth since it first began rolling out in 2018.

Published

on

The author of this Expert Opinion in Johnny Kampis of the Taxpayers Protection Alliance

There was universal consensus that 5G wireless technology would be a game changer for closing the digital divide. The question was whether or not private investment would be enough to deploy the needed infrastructure. A new report shows that capital expenditures from wireless providers reached a record high in 2021, as 5G saw tremendous growth and will continue to help connect households now unserved by broadband.

CTIA’s 2022 Annual Wireless Industry Survey shows that wireless providers invested $35 billion into growing and improving their networks, the fourth consecutive year of industry growth.

CTIA said this is “a powerful trend that emphasizes the societal importance of wireless connectivity and underlines the industry’s commitment to building a robust platform for innovation that connects all communities.”

5G has experienced a quantum leap in growth since it first began rolling out in 2018, as infrastructure reforms that eased deployment barriers have resulted in 5G growing twice as fast as 4G. Since the Federal Communications Commission and state legislatures worked to modernize key siting regulations that could have stymied the technology’s growth, wireless providers have added 70,000 active cell sites. There are now nearly 420,000 operational cell sites across the U.S.

As CTIA notes, “More cell sites enhance coverage, encouraging adoptions and helping to close the digital divide.”

Clearly consumers want faster mobile internet speeds as the number of connective 5G devices grew more than a whopping 500 percent this past year from 14 million to Accenture 85 million. About one-third of American now possess an active 5G device.

CTIA points out that the number of connections that require wireless technology is helping fuel the growth – everything from smart watches to medical sensors. Such data-only devices represent about 42 percent of all wireless connections.

Wireless providers have invested nearly $121 billion into their networks since the launch of 5G.

CTIA notes that in an age of incredible inflation, the wireless industry’s investment, combined with increased market competition, has led to lower prices, “providing a welcome contrast to an economy where consumers have faced priced increases for 94 percent of tracked goods and services nationwide.”

Since 2010, the cost of unlimited data plans has declined 43 percent while wireless speeds have increased 85-fold over the same period.

Investment and competition have also led to new innovations such as 5G for home broadband and 5G fixed wireless. The latter is particularly useful in connecting rural areas where it’s hard to make a business case for fiber due to the cost of the last-mile connections. CTIA notes that 5G home broadband is available in more than 40 million households, providing home connections via spectrum with high capacity and low latency rather than a wired connection.

The report also points out that 5G is helping mitigate the impacts of climate change by creating green jobs in key industries. Accenture has found that 5G-enabled use cases should delivers 20 percent of the U.S.’s emission reduction targets by 2025.

5G is clearly helping usher in a new age of connectivity in this country. CTIA’s statistics are encouraging signs that the latest wireless technology is helping make broadband access available to more Americans than ever before. The best part of this growth is that taxpayer dollars are not being spent.

Johnny Kampis is director of telecom policy for the Taxpayers Protection Alliance. This piece is exclusive to Broadband Breakfast.

Broadband Breakfast accepts commentary from informed observers of the broadband scene. Please send pieces to commentary@breakfast.media. The views reflected in Expert Opinion pieces do not necessarily reflect the views of Broadband Breakfast and Breakfast Media LLC.

Continue Reading

Recent

Signup for Broadband Breakfast

Get twice-weekly Breakfast Media news alerts.
* = required field

Trending