Tuesday, January 21, 2003
Copyright © Las Vegas Review-Journal

Las Vegas wireless Internet access company expanding

Jonathan Snyder, chief executive officer of KeyOn, shows the wireless Internet service devices his company installs on houses. In the background is a map of the areas in the valley served by KeyOn. Photo by Gary Thompson.

A new Las Vegas company that has been selling low-cost high-speed Internet access locally is hoping to expand its service to other parts of the country.

KeyOn Communications has been selling low-cost, high-speed Internet service that relies on fixed, wireless technology for the past three months to local residents and businesses.

During that time, it has signed up 500 subscribers in the Las Vegas area, with the number of subscribers doubling or more each month, said Jonathan Snyder, chief executive officer of KeyOn.

The company now plans to announce an agreement to license its technology to Fairpoint Communications for use in 20 rural communities in central Ohio, upstate New York, Maine and Florida. Fairpoint is a Charlotte, N.C.-based holding company for 29 local telephone exchanges around the country.

Snyder declined to disclose the financial terms of the licensing agreement but said it is based on an upfront charge and flat fee for each Internet subscriber.

Snyder attributes the licensing agreement to KeyOn's success in selling the service in Las Vegas.

It attaches pizza-box size devices on the outside of houses and small businesses that communicate wirelessly with devices on radio receiver-transmitters on cellular towers. It now has the electronic devices on three cellular phone towers but expects to increase the number to eight within a few weeks.

KeyOn targets residential customers with rates that are about half those charged by Sprint for high-speed digital subscriber lines and Cox for stand-alone cable modems. It offers residential service for $24.95 a month plus $50 for installation.

Cox Communications spokesman couldn't be reached for comment. Rob McCoy, a spokesman for Sprint, said his company "welcomed competition."

James Allen, president of Techwarrior.net, which operates as dial-up Internet operator AccessNevada.com, wasn't familiar with KeyOn but called fixed, wireless technology "another option" for consumers.

Allen called wireless, high-speed Internet service "a nice technology" with a lot of bandwidth for customers who cannot or do not want to use a telephone company's DSL service or a cable modem for high-speed access to the Internet.

One of the technology's main drawbacks is "you can get some interference from some other services. It's kind of like a cell phone," he said.

Snyder, however, said interference is "very rare" with KeyOn's service.

Another drawback to the technology is that it doesn't include e-mail service, although Snyder noted customers can obtain free mail accounts through Internet service providers like Yahoo!

KeyOn is seeking a patent for its technology, which was developed by Dan Roady, an inventor and member of its staff. Roady developed software that uses inexpensive, off-the-shelf hardware.

While working for Pacific Capital Group, Snyder was part of a team that helped Global Crossing raise $1 billion for its first cable system. He worked previously for Bear, Stearns & Co. telecommunications group. The company employs nine people including Robert Handell, Jon Agers and Jason Lazar.

Jerome Snyder, his father and a founder of Palace Station, is board chairman. Mark Brennan also is a board member.