The hottest trend today is the emergence of the next generation of the new “high-speed” Internet. That trend is underway right now and it is called 4G. 4G, ubiquitous mobile, wireless, high-speed broadband Internet connectivity is exploding around the world and particularly in the United States. Clear (a partnership of Clearwire and Sprint) was the first to begin building 4G networks in major cities throughout the U.S. Today, Verizon, AT&T, Sprint, T-Mobile, et al are adding 4G capabilities to their existing networks. In addition, the U.S. Government is providing incentives for the deployment of 4G service in less populated and underserved rural areas of the U.S. The pathway for deploying 4G service that is being followed by all the incumbent cellular carriers is the same pathway that was followed in the original deployment of cellular networks in the U.S. As such, they are focused only on the major markets and are, by-and-large, expecting that either smaller existing or new operators will cover the rural areas as happened in the early 90’s when businesses such as Midwest Wireless and Rural Cellular got started in rural America. They did so with the help of federal grants and loans and were given access to the Universal Service Fund. The market today is a lot different particularly so because of the Internet and the proliferation in the number of handheld Internet devices, many of which do not function as a cellular phone. Thus there are much bigger challenges facing the incumbent carriers than when they built out their cellular phone systems.
LocaLoop is the only company today that has invented a technology that enables a business model that can cover less populated areas and sustain as a profitable business without the need for subsidies from the government or from larger cell phone carriers subsidizing their subscribers when they are traveling through rural areas. LocaLoop’s technology is the first to have all of its 4G business and network operations in “the Cloud” and the physical 4G network, because it is Internet protocol data only, does not need to relay on any incumbent wireline phone company’s switched network. Moreover, LocaLoop’s technology can be overlaid on existing rural based Internet Service Providers (ISP’s) systems in a joint venture model that further reduces the cost of deployment without impinging on the core network of the carrier.
LocaLoop has strategic relationships with hardware vendors including Runcom, an Israeli leading edge broadband wireless hardware vendor who provided the chipsets for the world’s first mobile broadband chip in South Korea’s countrywide pre-4G, now 4G network, which has evolved to be one of the most advanced mobile broadband Internet networks in the world today.
LocaLoop has launched their first deployment in a joint venture with Southwestern Minnesota Broadband Services (SMBS) in Jackson County Minnesota. That network is now being expanded to cover two adjacent counties – Nobles County and Cottonwood County. In addition LocaLoop recently was a featured presenter at a Community Ventures Network (CVN) meeting. CVN, which is based in the Twin Cities, works with rural communities throughout the Midwest and helps them gain new technologies and also helps them to find businesses than can be relocated to small towns and cities. Just this meeting has put LocaLoop together with more than 15 communities located in Minnesota, Iowa, Missouri, North and South Dakota, etc. all of whom want to bring high-speed, mobile 4G capability to their town.
LocaLoop is also moving forward with a plan to deliver high-speed, mobile 4G broadband Internet connectivity to drillers and operators in the “hot” Bakken Play in North Dakota. LocaLoop has determined that most US oil and gas exploration and production companies are using very expensive, slow, unreliable, legacy communications systems to move critical data from all well activities to headquarters. This opportunity alone could bring significant profits to LocaLoop.
LocaLoop is currently seeking to raise $1 million in new equity with favorable terms for investors.