Kelley grads seize opportunity in wireless Internet

Wireless Internet technology not only helped three 2005 graduates get through four years of assignments at IU, it also sparked an entrepreneurial venture for them after graduation when they discovered a niche in the wireless Internet market few companies were exploiting. \nTraditional wireless companies in the Lafayette area were feeding cable and digital subscriber line technology through phone lines, but alumni Kelly Cantwell, Colin Meadows and Eric Steele knew there was a better way: providing wireless Internet through airways. This month, ForePoint Networks, the venture started by the trio in the Lafayette area, is celebrating seven months of doing just that, and of staying alive in a very competitive industry.\n"There was a lucrative market (in wireless Internet)," Steele said.\nThe founders said feeding the Internet through airways, rather than phone lines, gave the company two competitive advantages: It was able to deliver high-speed Internet to rural communities -- a customer base overlooked by most large wireless companies -- without previous wireless access, and it avoided paying charges to phone companies, which many of its competitors have to pay. In turn, these savings were then passed on to consumers.\nForePoint Networks faced many obstacles in the beginning. One of the toughest, Steele said, was dealing with an industry in which all three students had very little experience. \n"(It was a) technology company started by three business students," Steele said. "There was a large unknown we faced … regarding the routing and programming side of things." \nDespite this fact, he and his partners tried to teach themselves many aspects of the wireless business.\nIn September, ForePoint Networks filled its technological knowledge gap by partnering with Accent Consulting, a technological consulting company.\nWireless Internet is currently a booming business worldwide, not just in Indiana. Experts predict more than 215 million people will have subscribed to broadband Internet in 2005, according to a report from Computer Industry Almanac. The United States, which leads the world in terms of the number of broadband subscribers, is predicted to reach nearly 47 million subscribers by the end of 2005.\nSeveral other wireless companies are beginning to seize the opportunity provided by high bandwidth technologies, such as Luxembourg-based Skype and New Jersey-based Vonage, which now allow consumers to make phone calls using their high-speed connection. These domestic and international calls are significantly discounted from the rates of traditional phone companies. \nCantwell said he is excited about all the new applications being developed in the wireless field. Services like Skype and Vonage will help higher the demand for wireless services, he said. \nGood results from new wireless technology are in the works for consumers too, Steele said. \n"Being able to access high- speed Internet (from any spot in the United States) with your laptop is not far off," he said. \nDespite their recent success, the three graduates took on a big risk by starting ForePoint Networks directly after graduation since early success can often be difficult to achieve. \n"It was brave … especially coming right out of college," said junior Tim Daugherty, who knew Cantwell, Meadows and Steele. He described the trio as "intelligent, creative and motivated." \n"Judging by that, (they) had a good chance at succeeding," he said.\nAlthough Steele acknowledged it was difficult, he said he believes the time period right after graduation "is an opportune time (to start a business) because you have very few responsibilities." \nAll three of the original partners said they believe the Kelley School of Business gave them a good basis for running a business. \n"Many skills learned in entrepreneurship I thought to be irrelevant at the time (but) are used on an everyday basis," said Steele.\nWhile Meadows has since pursued other job opportunities, Steele and Cantwell continue to work at ForePoint Networks. Both Steele and Cantwell said they have enjoyed building the company, but they don't see themselves in the business for a long time. Since the wireless Internet industry is currently consolidating, Steele and Cantwell said selling the company to a telecommunication giant might be ForePoint's future. Cantwell said he hopes the company will eventually grow and new managers will be hired to take his and Steele's places.