Wireless Internet firm enters Des Moines market
Dynamic Broadband, a wireless Internet service provider for businesses and individuals that got its start in rural Iowa, is entering the Des Moines market.
The company, headed by former GE Capital auditor Mike Miller, plans to begin offering fast wireless Web access to customers within a 10-mile radius of downtown Des Moines this month. It hopes to have additional transmitters working by the end of the year that would extend its signal to the western suburbs.
Dynamic Broadband is the product of a joint effort between the Central Iowa Power Cooperative, which helps provide electricity to rural customers, and RACOM Corp., which operates two-way radio networks that are used by government agencies, including the Polk County Sheriff’s Department. Miller’s family began RACOM in 1972.
The company began in June 2000. Today, is has 15 employees and about 2,000 customers in 25 towns and cities in Iowa, Nebraska and Illinois. About 500 of its subscribers are residences. It hopes to add about 10 workers in the next year.
Before coming to Des Moines, Dynamic Broadband’s largest market was Cedar Rapids, where it recently won a $1.5 million investment from Aavin Venture Capital, Miller said. Its biggest challenge will be succeeding in a market that is more competitive than any it has entered.
Mediacom Communications Corp., Lighthouse Communications Inc. and Qwest Communications International Inc. all offer high-speed Internet access, and each has more customers, more money and better name recognition than Dynamic Broadband. To combat those competitive advantages, Miller said, his company can offer customers lower rates and better service.
“We’ve spent two years proving our business model and making sure that our service works correctly,” Miller said. “We can offer a monthly price package that’s very competitive.”
The company plans to charge residential customers in Des Moines $29.95 per month and companies $39.95 per month with a 24-month contract. For that fee, customers will get Internet speeds of 256 kilobits per second, which is about five times faster than is possible with ordinary dial-up service. Businesses can pay more for higher speeds.
To provide its services in Des Moines, Dynamic Broadband has installed a transmitting beacon at the top of 801 Grand. Customers will receive the signals via an antenna that’s less than a foot tall that will be installed by the company’s technicians. Its technology lets customers both upload and download information at the same speed, an unusual feature. Most Internet connections let customers download information at much faster speeds than they are able to upload.