First Avenue Networks, Conterra to make use of wireless strengths

First Avenue Networks and Conterra are merging their individual strengths into a fixed broadband wireless deployment in the Southeastern United States. Conterra, a regional fixed wireless broadband provider currently offering services in the 5 GHz unlicensed U-NII spectrum will use First Avenue’s licensed 39 GHz frequencies to deliver wireless services in August, Ga.; Charlotte, N.C; and Columbia, Charleston, Greenville and Spartanburg, S.C.

“We own a piece of their company, and they own a piece of our frequencies, and together we serve the needs that they identify,” said Dean Johnson, First Avenue’s president and CEO.

First Avenue acquired the licensed spectrum and some 39 GHz equipment when it purchased the assets of Advanced Radio Telecom [ART], a national fixed broadband wireless provider. Rather than operate its own network of systems, First Avenue is pursuing partnerships with regional players such as the one with Conterra.

“It’s important to note that these guys are on the ground in Columbia and Greenville. It’s not part of some nationwide program where people don’t have an appreciation or don’t have an in with some of the local businesses,” Johnson pointed out.

The agreement gives Conterra access to licensed spectrum and a migration path from U-NII, said Mark Horinko, the company’s chairman and co-founder.

“It was part of our strategy right from the beginning to acquire licenses. We wanted to use the U-NII to get in and get customers, but then have a migration plan in case there are interference issues down the road,” he said.

The 39 GHz spectrum, he said, can go out about two miles from a base station and deliver bandwidth as high as 622 Mb/s. Conterra’s plan starts with a 300 kb/s U-NII offering for $199 a month. At about 4 Mb/s, the company would switch customers onto 39 GHz “and take that all the way up to 500 megabits so we can build some pretty big pipes,” said Horinko.

Johnson emphasized that First Avenue delivers more than bandwidth.

“We try to counsel them in who the better 39 GHz equipment providers are. We have our own inventory, and we certainly want to let them avail themselves of that,” said Johnson.

Both Johnson and Horinko said that the first markets are the starting blocks and that regional expansion will follow if things go well.

“Having enough dough to do Columbia really gives them a leg up,” said Johnson.

Having 39 GHz spectrum gives Conterra another piece for its marketing strategy.

“We’re working the retail very strong, the medium and small-sized businesses. Even the government side, there are municipalities that are interested in new broadband services,” said Horinko. “Also, we’re working the wireless cellular backhaul market pretty hard.”

The goal, he said, is regional expansion.

“We get some traction, and we’ll throw another 100-mile ring out and pick up Greensboro, Raleigh, get into Tennessee and maybe Atlanta,” Horinko said. “We get traction here, and we’ll just keep going out.”

That, said Johnson, is the wireless trend of the future.

“There’s stirrings of life out there. The obituaries are probably a little harsh for the industry,” said Johnson, noting nevertheless that the days of the big national wireless carriers have probably ended.

“I don’t think you’re going to see the likes of ART, Winstar, XO and Teligent doing it. It’s going to be people like Conterra, the people who understand their local needs and their local markets. That’s a big change from the old days,” he said.