Right mix of technology, experience a plus for Barrett Xplore

Rural Internet access provider Barrett Xplore Inc. possesses what it believes to be the right blend of technology to be a major player. In a recent interview with Report on Wireless, company founder and chair of the board Ed Barrett talks about how Barrett can succeed without additional subsidies. "We would describe ourselves as having passed that point where we are a minor player," Barrett says. "We have a substantial customer base and it’s growing every week and every month." While Barrett is tight-lipped about specifics regarding numbers of customers, he notes that the company has exceeded previous expectations. "I am reluctant to cite number of subscribers and what have you, but I would tell you that we are well ahead of our optimistic business plan," he says. The company offers fixed-wireless Internet service and satellite Internet service, but currently the provider has more customers on satellite services. Barrett explains that this is only because satellite was the first service offered. He expects at some point customers on fixed wireless services will surpass those on satellite. The company is now operating in approximately 125 communities – Barrett says the number is likely greater than that – and has committed to pass about two million homes by 2008. This is an aggressive projection given that Barrett has been offering commercial service for less than one year. Barrett – both management and the founder – are confident the targets the company has set out for itself are achievable, and to this end the firm has committed up to $250 million over the next 15 years in equipment-supply and service-supply contracts. Experience is on the side of the company when it comes to providing services for consumers as it was once a distributor for Star Choice Communications’ direct-to-home satellite services. "So, we see a number of similarities in terms of what it takes to get this to inflection point and what you experience in the first year, second year and third year ," says Barrett. "We’ve achieved the point where we know the model is right, we know that we can deliver and provide a good product to customers, support our customer base and that we could achieve our targeted number of subscribers over the period of the business plan," he adds. Not only can the company rely on its previous experience selling services to consumers, Barrett is using technology that is sound, reliable and relatively inexpensive for the rural and remote market. Its use of satellite technology – Barrett has entered into an agreement with Telesat Canada to use capacity from its Ka-band satellite – also serves to cover everywhere. Jeff Burlock, chief technology officer at Barrett, says using satellite technology adds a level of uniqueness to the company’s business model. "There’s no customer we can’t serve. in some more traditional fixed wireless opportunities, even cellular, there’s always somebody you can’t hit as a customer; in fixed wireless and satellite we can ensure that we can serve everyone," he tells Report on Wireless. With the satellite technology in its tool kit, the company wouldn’t completely rule out a move into the urban market. Barrett states, however, that isn’t the service provider’s main objective. Besides, he adds, the firm has its hands full in the areas where it is operating now. "I don’t think there’s a single community where we are today where we don’t have competition."

Right mix of technology, experience a plus for Barrett Xplore

News | June 1, 2006

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