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Wi-Fi firm sees big future in area's smaller markets

THE SEATTLE TIMES David Schmelke is chief executive of Bothell-based Maverick.

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What it does: Builds citywide Wi-Fi networks in areas with fewer than 50,000 residents. Has a network in Kennewick and small tests in Silverdale and Poulsbo, Kitsap County.

Who: David Schmelke, president. From 1999 to 2002, he was director of wireless data at Bellevue-based T-Mobile USA, formerly VoiceStream Wireless.

In his opinion: "T-Mobile is the international leader of providing Wi-Fi services," he said. "But the market [Maverick is] going after has more potential than the market they have been chasing."

Why: Schmelke sees an analogy in AT&T Wireless' introduction years ago of its one-rate plan, which allowed subscribers to pay a flat rate for all calls made in the country, he said. At the time, VoiceStream could not compete with the plan but realized it didn't have to. Instead, it would focus on consumers who didn't travel much, actually a larger group, he said.

Fast-forward to today: "We are doing something similar," Schmelke said. "[T-Mobile is] going after the travelers" by being in Starbucks and Kinko's. "We are going after the rural and regional consumer" with services in one community.

How it works: Maverick partners with a utility district or a city, which pays for the infrastructure, including laying fiber and installing access points on utility poles. Maverick then handles customer support. Or Maverick can pay for the infrastructure and provide customer support.

Not free: To access the system, users subscribe at prices that start at $24.95 a month for speeds of 120 kilobits per second, or two times as fast as dial-up. For 1 megabit per second, they pay $59.95 a month.

Little-known fact: Schmelke said there is the common misconception that Wi-Fi is only accessible about 200 to 300 feet from an access point. But the right equipment, he said, can reach as far as four miles, making citywide deployments easier. Still, Maverick doesn't deploy to every inch of a city, but rather the densest parts.

Biggest concern: Security. Schmelke said Maverick tackles the issue by installing software on each user's computer, using 256-bit encryption and passwords.

Funding: Since starting the company last year, the founders have invested $600,000, and family and friends have pitched in $100,000. Recently, Schmelke made a presentation at the Northwest Entrepreneur Network's Investment Forum to ask for $3 million. That money would go toward launching service in up to 70 markets, 23 of which could be up by the third quarter 2005.

— Tricia Duryee

Copyright © 2004 The Seattle Times Company

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