Marketwire recently reported that OneFi Technology, Inc. (PINKSHEETS: ONFI) announced the installation of WiMax/BPL Technology under the ARRA. The installation will occur in the 600 square miles Hogback Region of the Navajo Nation and will begin in January 2010.
Tom White, CFO of OneFi who is managing the project, said in a press release, “We are delivering the network to meet the broadband internet needs of the Navajo community and the installation will be a model for the other Native American communities.” OneFi officials said that the company would use the model developed with this project to expand its commitment to other Native American communities and rural areas. The contract is valued at $20 million when installed.
The application made under the Broadband Technology Opportunity Program (BTOP) states that a fully redundant self-healing hybrid WiMax / BPL broadband network will be developed. The network architecture uses microwave delivered from the backbone to the local community. At the community level towers are installed so that WiMax can be broadcast throughout the total area. Base stations are used to receive and insert signals in power lines that deliver BPL broadband to the user.
The firm’s press release states that OneFi is a WiMax company developing broadband networks that are capable of 4G (4th Generation) compatibility. OneFi Technology’s focus is on rural communities and developing countries. WiMax is a wireless technology for the delivery of broadband internet.
In an article on TMCNET it seems that the firm requires payment upfront to start the job, “Once the company receives the funds, it said it will deploy its qualified engineers to the client’s area to layout the project and complete engineering working drawings. They expect this step to be completed in 45-60 days. The next step is the installation, and OneFi estimates this to be completed within 60 – 90 days, depending on the complexity of the project.”
Apparently, this type of arrangement did not work out very well for the City of Villa Park, CA. In July 2008 OneFi installed a WiMax-WiFi communications system in the city. The OneFi Technology network’s broadband signal was to allow the citizens of Villa Park to access the internet at speeds up to 104 Mbps. However, in March 2009 City staff recommended that the City Council terminate the license agreement (with OnFi) based on lack of performance.
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BPL still clings to life. Maybe they can make it work in the middle of the desert where the giant antenna effect doesn’t matter too much. The installing vendor seems to have a checkered financial and performance past. We always take a look at the size of the firm compared to the size of the job. A job that is a reach for a firm may work out alright, but maybe not because of financing or staff issues. Good luck to the Navajo and us as taxpayers since we are footing the bill for this project.
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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedIn, Facebook, and Twitter. Email the Bach Seat here.