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Stelera Wireless Gains $35 Million in RUS Broadband Loan
19 Mar, 2008
Stelera Wireless, an Oklahoma City based wireless provider, has been approved for a $35 million RUS broadband loan. Stelera intends to use the loan proceeds to launch broadband wireless service using HSUPA technology in 55 markets. Stelera intends to target rural or “underserved” markets with populations of 20K or less. The immediate planned markets are located in Texas, Kansas, New Mexico, Colorado, New Mexico, North Dakota, South Dakota, Oregon, Washington, and Arizona. “This is only the beginning,” says Ed Evans, Stelera CEO.
Rural Broadband Wireless Gaining Momentum
11 Feb, 2008
Stelera Wireless, a new Oklahoma City, OK based wireless provider, has launched service in Floresville & Poth, Texas. Stelera is one of the first companies to launch service using the recently auctioned advanced wireless service (AWS) spectrum. Stelera claims their network can offer up to 7.2 Mbps download and up to 2 Mbps upload speeds. AWS operates in the 2.1 GHz and 1.7 GHz bands. Stelera has 42, mostly rural, markets with AWS spectrum and intends to slowly roll out service across their footprint.
Stelera joins DigitalBridge Communications who are also targeting rural markets, but with a WiMAX play in the 2.3 GHz spectrum bands. DigitalBridge has launched service in several rural markets in Idaho, Montana, and Indiana. Other pending rural wireless plays include Crossroads Wireless and Open Range. All of these companies are targeting “underserved” rural markets with a broadband alternative. Underserved generally is a code word for markets served by large RBOCs and/or MSOs who have not invested in local broadband networks. These markets are often identified as a part of the “digital divide.” DigitalBridge says they have reached 10% penetration within 6 months of one their first market entries, Rexburg, ID. These growing rural deployments are leveraging quickly evolving broadband wireless technology and pent up demand for broadband in markets where little or no broadband competition exists. This trend will definitely continue. There is certainly no guarantee of success. These new companies will have to prove their business case and execute well.
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Events
Upcoming events which offer competitive insight and analysis:
Mobile Internet World
Oct 21 - 23, 2008 - Boston, MA
TelcoTV Conference and Expo
Nov 11-13, 2008 - Anaheim, CA
NTCA Wireless Symposium
Jan 7-9, 2009 - Austin, TX
Featured Article
Time to Prepare for DOCSIS 3.0 is Now
07 Aug, 2008Second quarter results for broadband growth were a tad underwhelming. There are any number of factors which probably contributed to this slowdown, with the economic slowdown and housing crisis certainly towards the top of the list. But growth is also slowing because broadband penetration has grown considerably over the past few years, now ranging somewhere between 50% to 60% (depending on who you ask), and is beginning to slow down. There certainly is more room for growth, but at some point in the near future, broadband penetration will slow even more as it approaches saturation. It’s anyone’s guess what saturation is, but I would bet somewhere around 75% penetration of households (as a national average - individual markets will vary widely). From a service provider’s point of view, that suggests that posting continuing net adds of broadband customers will increasingly involve convincing a competitor's broadband customer base to switch service.

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