MEME Demonstration - Dallas, Texas - April 2
(I did this on a word processor first, then cut & paste - I can't seem to get the sentences to wrap around - sorry)
The demo was held in the Johnson Room at the Westin Galleria Hotel in Dallas last
Thursday at 4 p.m. Representing MEME were Dave Loflin - Pres.; Waddell Loflin - VP
Dir. of Operations (and brother); Smith Thomas - Network Administrator; and Eric
Newlin - Securities attorney for MEME.
A small but highly interested crowd was there composed of investors (SI posters), tech
people, stock brokers, and a representative of Centerpointe Communications, which is a
company that has 700 tower sites with plans for about 1800 more and was interested in
offering help with building an infrastructure for MEME. Since this was the first public
demo or "viewing" (a "dry run" if you will), the intent was to keep it relatively simple,
work out any potential bugs (not with the system, but the presentation) and prepare for
the big demo in San Francisco in three weeks where there will be major media, securities
analysts and reps from major brokerage houses, and Internet and high-tech specialists.
Prior to now it had been only demonstrated to individuals and companies.
Dave, a congenial, slightly portly guy in his early 40's, started out by giving a little
personal history. He had worked in the wireless cable industry in the early 90's as a
consultant for such companies as Heartland Industries, Hart Engineering, 21st Century
Telecom, and many others. During this time he had also accumulated 300 wireless
channels which he subsequently sold off. His technical background had been in RF
technology and when the Internet came along he started developing some theoretical ideas
- "what if" scenarios and started building some prototypes to test his theories. What he
came up with was a wireless Internet application derived from RF theory - basically
Internet access without the necessity of a telephone line connection!
The System
What Dave did in Dallas was essentially build a "mini" wireless system. The hotel provided
an ISDN line which he used to send out a signal (in reality there would be no phone
connection but Dallas doesn't have a MEME infrastructure yet). But in this case the ISDN
acted as a cell, (then he attached a RF transmitter to the ISDN line which sent out a signal
which was received by his computer). Then the next step is to transmit to the end user
(residence, business, or ISP). In this case Dave had a Canon Innova Book 200 LS laptop.
The end user would have a unit (receiver) with an antenna attached to pick up the signal.
Dave had the Internet up and operational without a phone connection. Dave displayed his
2nd generation ISA card which is basically his wireless modem attached to a board that
fits into any PC or laptop (these will be used in Santa Fe -the next city). It is a 2 Meg card
with an ethernet card and wireless modem all as one unit which fits into any available slot.
Again - No extra telephone line - No separate ISP!
What this means is that everybody at a residence or business could access different
computers, access them simultaneously (multi - Internet), and be able to answer their
phones without having to install extra lines (imagine you can work on your laptop, the
kids and your wife can work with their computers and you just pay for one phone line for
conversations).
Because of RF utilization, MEME's system is capable of high-speed, large bandwidth
access. Using a "Direct Frequency Spectrum" (as opposed to a frequency hopping system
which doesn't provide enough bandwidth) MEME can offer:
1. 64K - 10 Megabits connectivity (residential to corporate applications).
2. High-Speed data transfer for businesses (that's why Exxon picked MEME, as well as
the fact that MEME's system was 25% less expensive than the other systems they were
considering.
3. Plug-n-Play - where other systems are highly complicated to install, MEME's is truly
plug-n-play.
Dave said that he can install and charge for a T1 connection for 30-50% less than existing
technology!
One main unit linked to different cells which could overlap can easily reach a 50 mile
radius (actually Dave said it is essentially an "infinity" system).
It operates on a 900 or 2.4 Mhz signal. Evidently the 900 Mhz band was developed by the
military (The 900 Mhz uses a "spread" spectrum (zig-zag wave) and is harder to intercept
and decipher). It is also digital and if someone intercepts it they will get garbled bits and
bytes. After developing and using it, the military realized that eventually someone (like the
Russians) could figure out how to intercept it and so they abandoned it. When I brought
up a question about Internet security (reception and transmission) Dave already had the
answer - an encryption chip imbedded on the board as an option.
Future Plans
The system is now operational in Baton Rouge, Louisiana. Santa Fe, New Mexico is
scheduled next with a target date of June 1st. It would be 100% wireless. Santa Fe was
picked because it has little foliage with few trees, 90,000 people, terrain, demographic
base and minimal competition. Since MEME is essentially a wireless ISP, their intent is to
roll up existing ISPs, use their existing customer base and expand it by incorporating their
wireless system.
Dallas will follow shortly thereafter because there is a great need for corporate businesses
for this technology. Also MEME will establish their system in neighborhoods which meet
the criteria (MANY areas in Dallas). It takes just one month to build an infrastructure and
turn on its first customer. By the way, MEME holds a lot of spectrum in different markets.
Weather will not be a significant factor. Under normal weather conditions rain and storms
will not affect connectivity (if there's an electrical storm you probably shouldn't have your
computer on any way). IF there is a momentary halt in data flow there is no re-dialing. It
just temporarily stalls then automatically re-connects itself. The connection is always on.
When you first connect to the Internet, using MEME's system, you just logon and you're
there! No dialing, busy signals, bad line noise, time wasted re-dialing - in essence -
INSTANT INTERNET!
In businesses and residences MEME (or it's representatives) will install the system in your
computer and wire the base site. The cost will be $299 plus $39.95 a month (lease options
are available and would bring this cost down.) At residences the monthly charge is not
charged per computer, just $39.95 regardless of how many computers are accessing the
Internet. Considering there are no additional phone lines or ISPs this is a tremendous
monthly savings. You start saving money the first month.
Competition
As far as I know, Ricochet (speeds only as high as 19,200) and WaveRider (which is
evidentally not ready for delivery till the 3rd Qtr.) are the only existing competitors.
AT&T. Sprint, Motorola, etc. are in the cellular business - not wireless. From available
indications they're not even interested in wireless because they want to capitalize on their
existing, highly expensive fiber-optic infrastructure.
Funding
Dave said he has turned away certain funding offers because there were too many strings
attached or it would have caused dilution in the stock (something he is "extremely
concerned" about.
Caspar Weinberger Show
This came about when Howard Weiner, who's with the World Business Review, called a
few weeks ago and asked Dave if he'd like to be on a panel of experts to discuss the
"Internet and Alternative Accesses & Uses". Dave of course said "Yes" and is now going
to be on the show possibly in June.
Future Technology
Dave said he is working on:
1. Video Enhancements - paid-for-view could be used on his system because he will have
the bandwidth to handle it.
2. Web Casting business - broadcast TV and movies in the public domain.
3. Internet Telephony - (BIG FIELD)
Note - He is currently negotiating with people in the Philippines and Venezuela to install
his systems. What's exciting here is that the opportunities overseas are fantastic because
the FCC doesn't exist there and there are fewer restrictions.
My thoughts
I think MEME is ahead of the pack as far as technology and existing game plan. Their
potential to enter into domestic as well as international markets is excellent as well as
exciting. The need is there - they just need to bring it to the market.
With their proven technology a fact, the only temporary hitch that I see, in the short term,
is funding. In the long term I don't think this is going to be a problem. In the short term I
hear adequate funding will be handled to the requirements that Dave has.
Sorry this took so long to get out but I've been busy.......better late than never........
Richard |
