Clark County's B2B Magazine clark county's business to business magazine
FREE Subscription to B2B Magazine Friday, November 21, 2008   [archives]
  leading topic snapshots stockwatch what's happening in their own words cc stats 'n facts from the editor/contact  HOME PAGE
  Legacy Health System Golf Tournaments Becoming a Hotelier Air Speed Internet $50 Million Retail Battlefield

A new breed of Internet connections

A Washougal company wants to get homes and businesses surfing the Web at high speeds using signals that travel the air, but don’t call their product WiFi.

Air Speed Internet connections use a technology closer to that used by cell phones or TV broadcasters, and that difference allows for more security and sounder connections than most wireless users experience.

With towers across Clark County, Air Speed has built a secure licensed-bandwidth network that doesn’t depend on traditional broadband wires until it hooks directly into Portland’s major telco hub, this region’s main link to the global Internet. On the user end, a mounted outside radio unit sends and receives the secure signal.

After four years of quietly developing its network and a portfolio of services, word-of-mouth referrals have built Air Speed’s customer base to more than 600, with about 75 percent of subscribers residential and the rest business.

Photo by Kristina Wright
for The Columbian
Because it doesn’t rely on wires, Air Speed can often connect rural homes and businesses that were until now left behind during the information technology boom, and as the news spreads, potential new customers keep ringing, said William Jorgensen, vice president of operations.

One of those phone calls came from Mari Ann Guetter, owner of Riverside Marine Service and an Air Speed convert.

“We had a Visa machine, two computers in the office, two in the shop, all trying to use one dial-up line,” she said. “We had to tell people to get off the phone, get off the computer, so we could use the Visa machine.”

Guetter wanted to switch to a more powerful Internet connection, but her shop was not wired right. Then she learned that she didn’t need wires for a fast connection.

“We’re all able to access the Internet at the same time, it freed up a telephone line for me and it freed up my visa machine,” she said. “It’s been wonderful.”

Going big time

Now the company is preparing for its first big expansion, as it targets the lucrative small-to-medium-sized business market already occupied by companies such as Integra Telecom in Portland and New Edge Networks in Vancouver.

Backing Air Speed since its 2003 founding has been a family with deep roots in Clark County’s telecommunications: the Wartas, who founded GST Telecom (later bought by Time Warner), Electric Lightwave Inc. (bought by Integra Telecom), Pacific Light Net (based in Hawaii) and other firms, and who laid cable across the West, including Clark County.

“We’re built on a history of success,” said Laurie Casey-Bah, director of market development.

Although most of Air Speed’s customers are residential, the company plans to turn its focus to business, Jorgensen said.

Air Speed offers a range of business services, including Voice over Internet Protocol, or VoIP, phone and secure multi-site networks that can connect the different branches of a spread-out company.

The firm also provides a niche service to construction firms. It sets up security cameras that record construction sites and provide a live streaming video — a security measure during down times, and an investigation tool in the event of an accident, Jorgensen said.

Still, Air Speed does anticipate continued growth in rural residential areas, where high-speed DSL and cable-based Web access are not always available.

“We’ve done a lot of work with Realtors trying to sell homes,” said George Warta, a founding investor in the firm. “Some people won’t buy unless they can get broadband Internet at home.”

Drawbacks

Both wired and wireless broadband Internet connections have their limitations.

Photo by JANET L. MATHEWS/The Columbian
On wired side, it’s the “last mile” challenge: Physical cables must be laid between switching stations and homes, and building that final connection mile is expensive. As a result, many homes in rural areas and even some in denser neighborhoods can’t get traditional high-speed Internet.

Air Speed doesn’t depend on wires, but its radio signal Internet requires an unobstructed sight line between broadcast towers and the on-site signal receiver. A different frequency that can penetrate trees is a possible non-line-of-sight solution, Jorgensen said. But it’s a workaround that is slower than the line-of-sight alternative.

There are a few pockets in its coverage area that Air Speed can’t reach, but most of Clark County, parts of Skamania County, north Portland, and some towns east of Portland fall within the Internet provider’s net.

Gearing up for growth

Air Speed was profitable in 2004, Casey-Bah said. In 2006, company revenues grew by 30 percent, mostly relying on word-of-mouth referrals, she said, though she would not provide specific figures.

Many small- and medium-sized businesses can’t afford full-time IT staffs, and Air Speed’s services will cut down on the hassle of getting connected, Jorgensen said.

Meanwhile, telecom consolidation has reduced the number of firms trying to reach this marketplace, he said. “It’s a good time for us to be doing this.”

AIR SPEED INTERNET
● WHAT: Broadband-speed Internet connections and services, without the wires.
● ON THE WEB: www.airspeedinternet.com.
● MONTHLY RATE: $100 for businesses, $60 residential.
● EMPLOYEES: Six.
● WHERE: 421 C St., Washougal.
● REVENUES: Won’t say.
● WHAT’S NEXT: Expanding the network into Cowlitz County and farther into Portland; seeking out more business customers.