DENVER-High-speed wireless Internet service provider Ricochet Networks Inc. has once again revised its business model and now plans to sell its service to municipalities across the United States, as well as internationally.
The company plans to sell its metro-wide networks to cities that could use them at their discretion for wireless data services, explained Paul Orland, chief technology officer and vice president of business development at Ricochet.
Emergency first responders, political representatives, police forces, local libraries and social services departments represent some of the groups to which a city could offer service. In addition, a city could choose to offer service to consumers, much as Ricochet does today in Denver and San Diego.
The company plans to keep its active consumer networks up and running, but no longer has plans to expand into other markets solely for consumer use.
Ricochet plans to announce agreements with municipalities in the “near future,” according to Orland. Ricochet will also provide optional engineering and operational services following a city’s purchase of its system.
Ricochet’s networks should be more attractive to municipalities than competing metro-scale Wi-Fi network providers’ plans, Orland said, because Ricochet’s network costs “an order of magnitudes less than competing technologies, with low recurring costs.” In addition, Orland said Ricochet offers better range and building penetration capabilities, more easily enabling mobility.
The service, which operates in the 902-928 MHz and 2.4 GHz unlicensed frequency bands, allows users to wirelessly connect to the Internet at speeds of up to 176 kilobits per second. It is powered by pole-top radios spread across power grids within cities.
The exact cost to municipalities will depend on the individual deployments, according to Orland. Ricochet charged consumer customers $45 per month for unlimited service, plus $100 for the modems required.
Ricochet has struggled to maintain financial viability under its previous plan, focused on providing high-speed wireless Internet service to consumers. The company also previously partnered with cities, like Denver, in what Orland referred to as “bartering agreements,” under which the city could access the network for free in return for leasing space on its infrastructure.
The new plan marks yet another rebirth for the company.
Under its original owner, Metricom Inc., the network was active in 17 markets across the United States. Metricom targeted travelling business people and charged $80 per month for unlimited access. Those networks went defunct when Metricom declared bankruptcy with a $1 billion debt.
Aerie Networks Inc. purchased Ricochet out of bankruptcy for $8.25 million in 2002. The company recovered the Denver and San Diego networks and focused on the consumer, charging $45 per month with $100 modems. But Aerie couldn’t keep the company alive either, and now Ricochet is functioning under its third owner, Denver-based EDL Holdings Inc., a Victor Mitchell Family L.P. company, which bought the assets late last year.
The new owner originally planned to expand the existing networks, ramp up advertising and roll out new pricing plans to attract new consumer customers.
