JAB rolls 5 brands into Rise Broadband, plows $30M into network
Transcription
JAB rolls 5 brands into Rise Broadband, plows $30M into network
Denver Post May 15, 2015 BUSINESS JAB rolls 5 brands into Rise Broadband, plows $30M into network By Tamara Chuang - The Denver Post POSTED: 05/15/2015 04:25:14 PM MDT ADD A COMMENT UPDATED: 05/15/2015 04:25:21 PM MDT JAB Broadband rolled its five consumer brands into one — Rise Broadband — on Friday and committed $30 million to improve its rural network. The Douglas County company wants to get average customer Internet speeds up to 20 megabits per second and make sure there's enough bandwidth to keep service smooth — even during the evening rush hour. "We don't want the customer to know it's between 7 p.m. and 9 p.m.," said Jeff Kohler, JAB's co-founder and chief development officer. "Because with any carrier, you can almost set your watch to 7 p.m. because 7 to 9 p.m. is peak usage. Everyone has a bumpy experience." JAB's lofty goals are also expected to improve customer perception in 15 states, where the company has acquired 107 small providers in the past 10 years. The company employs 800 people, including 200 in Colorado. Under five brands — Digis, Skybeam, Prairie iNet, T6 and Rhino Communications — JAB quickly became the nation's largest fixed-wireless Internet service. But rapid growth also impacted its reputation. Customers complained of poor service and ranked some of its brands, particularly Skybeam, extremely low on sites like DSLReports.com and the Better Business Bureau. "We all know that many people who post on-line are dissatisfied customers - and the ones who have had positive experiences often do not take the time to share their experiences. All a customer has to do is contact us directly for their issue to be handled," Kohler said. JAB, which remains the parent company, relies on fixed-wireless Internet technology. Using a series of towers in rural areas, high-speed Internet is beamed to receivers installed at customer homes up to 15 miles away. Consolidating into Rise Broadband is meant to reduce customer confusion and save money by combining marketing efforts. Kohler said that the $30 million upgrade includes adding new equipment and technology to the towers and customer homes. The company is also buying more broadband from providers like Level 3 Communications. Kohler said he expects the process to take 12 months and improve service for 80 percent of its 200,000 customers. "We've already started," he said. "We're going to be making upgrades to areas that have highest demand." Customers who are not at 20 mbps should see speed improvements. Capacity could increase too, although Kohler said that the company's largest data plan is 250 GB and the average customer uses only 50 GB. In some areas, Rise offers business users speeds of up to 1 gigabit per second. Broadband is widely available in the U.S. even in rural areas. The National Telecommunications and Information Administration estimates 96 percent of rural residents can get up to 6 mbps. But rural areas lag. In the U.S., 54.6 percent of rural communities can access speeds of up to 25 mbps, which is the Federal Communications Commission's new benchmark speed for broadband. By comparison, urban areas are at 94 percent. In Colorado, the rural number drops to 31.2 percent. Faster Internet service is especially needed for rural residents to help spur innovation, job creation and connect communities often left behind, said Heather Gold, president and CEO of the Fiber To The Home Council, which promotes building fiber directly to homes. "Many people have the misperception that rural areas don't need fiber the same way urban areas do. But in fact they need it more," Gold said. Tamara Chuang: 303-954-1209, [email protected] or twitter.com/Gadgetress