SIOUX VALLEY WIRELESS

Rural Wireless ISP Showcase and Workshop

September 18, 2003Joel Brick

www.svwireless.com

A subsidiary of Sioux Valley Energy, Colman SD

Sioux Valley Wireless History

• Began MMDS TV in 1989.• MMDS Sioux Falls BTA in 1996.• Two-way wireless FCC Developmental

license for internet in 1998. • Initial Data equipment was limited,

experimental and expensive.• FCC two-way engineering and licensing was

very challenging.• We needed to become an ISP (Internet

Service Provider).

Sioux Valley Wireless towerslocated at Colman, Rowena &

Freeman, SD

Data Booster

What it took to Get Started…Legal Licensing:

• Ownership of MMDS frequencies.

• Ownership of BTA Sioux Falls.

• Developmental FCC Authorization to begin Service.

Lessons Learned…Legal Licensing:

• License was difficult, expensive and time consuming but Well worth it!

• Unlicensed compliments licensed• New Proposed Band-Plan with rapid FCC

approval will re-vitalize the MDS Industry! Will require market flexibility and cooperation. Ideal frequencies for broadband.

What it took to Get Started…Technical:

• MMDS/ITFS Super-cell FDD 1st Gen.

• Data Co-exists with analog MMDS TV service.

• 3 Super-cells within BTA.

• Numerous unlicensed access points to fill in service area.

Lessons Learned… Technical:

• With good terrain – 35 mile radius achieved from a single super-cell MMDS.

• Omni Xmil + Rx works well in rural areas and keeps tower costs low.

• Using MDS1, MDS2A, with omni- single super-cell can service over 1,000 subscribers. (90% residential, 10% business)

• Can re-sell T1 capacity 25 times, 1-T1 serves 100-150 subscribers, based upon user type.

• Must stay on top of system capacity!!!• Buy routers on E-bay!• Remote system management essential!• Be ready for more symmetrical customer usage patterns.

Sioux Falls BTA

Sioux

Lyon

Plymouth

Woodbury

O'Brien

Cherokee

Osceola

Ida

LakeMiner

Clark

Clay

Turner

Kingsbury

Deuel

Union

Lincoln

BrookingsBeadle

Moody

Hamlin

MinnehahaMcCook

Hutchinson

Yankton

Hanson

Sanborn

Bon Homme

Davison

Spink

Codington

Douglas

Charles Mix

Lyon

Rock

Murray

Nobles

Lincoln

Pipestone

Yellow Medicine

Lac qui Parle

Redwood

Chippewa

Knox Cedar

Dixon

DakotaPierceAntelope

Freeman Tower

Sioux Falls Tower

Colman Tower

January 29, 2002

35 Mile Tower Radius and Basic Trading Area

Subscriber Density

0

20

40

60

80

100

120

Sep-02

Oct-02 Nov-02

Dec-02

Jan-03

Feb-03

Mar-03

Apr-03

May-03

Jun-03

Jul-03 Aug-03

WIRELESS DATA INSTALLATIONS

Net Budget Net Actual Installs

What it takes to Get Started… Marketing:

• Name recognition helps.

• Competitive prices-same in rural areas as in towns and cities.

• Availability where others don’t go.

• Variety of service plans, quality of service plans.

• Work with underserved areas.

Lessons Learned…Marketing:

• Bundling with other services is a big deal!• Customers expect the same price, no matter

where the service is.• Targeted marketing/direct mail most effective.• Work with community leaders to find

opportunities.• Find opportunities/locations where the

competition has not gone.• Static IP, addl. speed for gamers, VPN, options.

Lessons Learned… Customer Care:

• Always-on broadband more important than power, water, etc!

• Customers don’t care about the technology to deliver the service.

• Customers expect more than just a connection, tech support, virus help, e-mail set-up assistance, new PC set-up.

What it takes to Get Started… Partnership & Capital:

• Convergence of talents: RF/IS/Marketing/Customer service

• Not an ISP? Partner with one.

• A great business plan necessary.

• Know how many subscribers will be required to break even in a reasonable amount of time.

Lessons Learned…Partnership & Capital:

• Community partnerships work.• Never underestimate the need for

broadband to any rural area or reservation. Savvy business people who need our help and services.

• Rural business apps. can thrive in rural settings. Omni-Pro Software.

• Learn from other WISP’s. Stay with proven vendors.

Rates

• Residential- $44.95/mo.

• Business I (128 K)- $44.95/mo.

• Business III (256 K)- $74.95/mo.

• Business II (512 K)$139.95/mo.

• Business I (1024 mp) $499.95/mo.

Business and Residential Installation $200

Network Management

Bandwidth Management

SVW Wish-List

Hurricane Isabel hasn’t landed here!Rural Broadband program will include

refinancing of existing debt for early adopters like SVW.

Coalition Band-Plan will be Rapidly Approved by the FCC.

FCC will continue to have an interest in finding ways to help WISP’s, both licensed and unlicensed, succeed in their business plans.

SIOUX VALLEY WIRELESS

Rural Wireless ISP Showcase and Workshop

November 4, 2003Joel Brick

www.svwireless.com

A subsidiary of Sioux Valley Energy, Colman SD