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February 8, 2019
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Small company has big Internet access dreams
by
Arlene Benham

 

     “We're trying to revolutionize rural Internet.” This ambitious idea is the goal of Grand Manan‑based Crave Technologies, which is run by Howard and Rebecca Small and partner Don Leclair. They are currently in the first phase of installing fiber-optic cable in the North Head area -- a big step up from the wireless service they have been offering to islanders.
      Howard Small has been working on the project a long time. He purchased his first equipment in 2006, and Crave was incorporated in 2009. He was determined not to seek government grants or subsidies that might come with conditions and red tape or apply only to companies that can't turn a profit on their own, so he set about finding independent investors. Individual and business partners have contributed financing, and now he says, "After 12 years of trying to find someone who could see my vision" for fiber-optic networks, in the past year they received "a huge shot in the arm, a vote of confidence from one of our equity partners" who will remain behind the scenes, but he adds,      "When you solve someone's Internet problem, it opens a lot of doors."
Crave promises a lot. With a 32‑kilometer microwave link from Blacks Harbour, they have 15 wireless sites on Grand Manan, and their 200 current customers get download speeds of up to 40 MB -- six times what Bell Aliant offers, with no data caps. Small says the system has been tested to 100 MB. "It's not difficult to sell a good product when all your competitors are selling a bad one," he says. Crave's point of presence locations are "low‑cost rapid deployment" utility poles holding all the required equipment. They sign easements with landowners allowing them to set up on the property, with free premium Internet as a perk.
     The trade‑named "Proximity Fiber" is a "future‑proof solution" geared to turning a profit in rural communities. As to what makes Crave's system different, Small doesn't give away details but says he has looked at fiber networks around the world and combined the best of their architecture. "It's a different way of looking at how to wire the thing up," he says, "a different type of equipment. We're so far outside the box, we can't even see the box."
     "It's not magic," Leclair adds. "There's new technology and new techniques, and Howard has taken these and put them together." He also notes that small companies can move much faster to develop new technologies than large corporations. "We're ahead of the game in many ways."
     Leclair is a software developer who joined Crave in 2015 and has helped with financing and recruiting investors. His business has partners in Europe, and he says the available Internet on Grand Manan was "embarrassing," with a 38‑minute software update for an example. He and his wife bought a vacation home on Grand Manan, but he says they couldn't live there full‑time without Crave's service, which allows him to run his business and have an employee.
     Small wants a system that performs as well or better than urban Internet. He believes "millions of dollars" of real estate could have been sold on the island if business owners who wanted to be there full‑time could have had fast reliable Internet. "Grand Manan has been crippled due to poor Internet and low capacity," he says. "How much money are rural communities missing out on their tax base because properties with poor Internet are less desirable?" Would‑be Bell Aliant customers are often told the company has no more capacity -- even previous customers who move from one house on the island to another. Small says realtors call them to ask if service is available for prospective buyers and cites cases where that was the deciding factor in a purchase.
     Crave's owners have invested in their own truck and have been trained in cable splicing and repair. Customers wait hours for service rather than the days it might take to call a crew from the mainland. They also know many of their customers personally, and Small notes that callers get one of the owners, "a real person... and not a ton of call transfers and still have it [messed] up."
     Phase 1 of their plan will cover most of North Head and is expected to be operational in February. Phase 2 in late spring or early summer will run more fiber-optic cable down Route 776 to Ingalls Head Road. They will be able to add more customers and switch some wireless customers to fiber, which has fewer maintenance and access challenges.
     They would like to extend the network to Seal Cove, but there is a sparsely‑populated stretch of road for which the cost is currently a deterrent: the number of houses -- and thus potential customers -- per mile is an unprofitable formula. After Phase 2 Crave will consider options and would like to hear from potential investors for that stretch. They are hoping to eventually cover 70% of the island.
     Bringing this service to small and isolated communities is Crave's goal for the future. What keeps fiber optic Internet out of such communities is the cost, Small says, noting that the tools are expensive, and they have to pay a monthly support‑structure sharing fee for every pole.
     The Smalls emphasize that they aren't seeking government funding. Rebecca says, "We're so innovative that some of our innovation disqualifies us" from some subsidy programs, adding that part of their uniqueness is being open to investors. Howard says, "If a business came along and said, 'You're building near us; what would it take to get your service here?'" and was willing to invest in the capital expenditure for installation, they would discuss an arrangement.
     This potential for investment partners is what they hope will fuel Phase 3, an expansion to the mainland, possibly in 2020. They've had a preliminary conversation with New Brunswick Power about the new undersea cable. Howard explains that they would tie into Canada's existing "end‑to‑end" fiber optic where it is available, then, with partners' financing, install their own fiber-optic Internet system to reach rural communities. Inquiries are beginning to come in from Nova Scotia to as far away as Manitoba, and with many telecom industry contacts, Howard doesn't rule out the U.S. as well. "We're open for business wherever the opportunity is."
     For more information on Crave Technologies, visit <www.proximityfiber.com> or <www.cravetech.ca>.

 

 

 

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