End of the line for internet blackspots
Former Ireland and Munster rugby player John Hayes at his rural home in Co Limerick with Denis Ahern of KBO. The firm supplies high-speed satellite broadband to homes and commercial properties nationwide. Picture: Don Moloney
Bringing high-speed satellite broadband to rural blackspots is expected to generate €5m in sales over the next five years for Limerick Company KBO.
While the majority of us take high- speed broadband for granted, KBO director Eamon O’Dea says there are places where households have to rely on frustratingly slow dial-up connections and where people have to go from room to room with a 3G dongle looking for a better signal.
“It is hard to quantify, but we believe there are between 50,000 and 100,000 households with poor or no broadband. These are mostly in rural areas but there are blackspots within 5km from the main exchanges also, not far from large urban centres.”
Identifying this market opportunity, KBO signed an agreement with Satellite Solutions Worldwide Ltd last year and is now one of a small number of companies licensed to provide this type of broadband in Ireland, a satellite service which is up to 150 times faster than traditional dial-up.
Since launching the service in May last year, the Bruff-based company has signed up more than 1,000 customers, generating revenue of €1.2m in sales. Mr O’Dea aims to have 5,000 customers within five years.
The strategy used to grow the business has been to show the technology at various shows and events, including the Ploughing Championship last year.
“By attending these events, we were able to identify the regions where most of the enquiries were coming from and visiting these areas afterwards,” explains Mr O’ Dea adding that KBO will be at the Ploughing Championships again this year, in Heathpark, New Ross.
While quite a number of the customers are in the western part of the country, he says the company has installations in every county in Ireland.
In the region of 10% of customers are small to medium sized enterprises, the rest are private individuals but there are a high number of farmers.
“There has been good demand for satellite broadband for use in calving sheds. It can be used to relay footage to smart phones so that farmers can watch it wherever they are.”
The company also supplies its services to a number of wind farms. “These installations can be on a mountain top so that wind farm companies can collect data from the turbine equipment on a daily basis.’ says Mr O’Dea adding that KBO also provides broadband to a number of national schools in rural areas.
Entering the satellite broadband market last year was a new departure for KBO, which was originally set up in 1999 operating in the telecommunications sector. Following the deregulation of the industry, the company became a partner dealer for Esat, providing landline and mobile phone services.
In 2001, when Sky Digital arrived in Ireland, KBO identified another new market opportunity and entered in a partnership with it, installing satellite dishes. Mr O’Dea says that within a few years, it had become one of the largest independent retailers of Sky in Ireland.
The company specialises in providing Sky TV to apartment blocks where a single communal dish is used and has provided this service for over 800 apartment projects throughout the country.
“At the peak of the boom we employed a staff of 35 and had the same amount of subcontractors.
“We were involved in several large apartment projects and we wired, among many developments the Elysian Tower and Lancaster Gate in Cork for telecommunications, security and TV”
KBO signed a contract in 2010 to provide a fibre connection to the home for over 40,000 apartments nationwide, which enabled these residents receive Sky television.
In 2010, the company decided to find a product which would generate recurring revenue. Investigating the broadband market, it identified satellite broadband as a perfect solution. The fact the company was already installing satellite dishes meant it already had the skills and the engineers necessary.
KBO currently employs a staff of 30 and expects to increase this by 10 over the next 12 months.
Mr O’Dea expects the major share of growth to come from broadband sales and is aiming to double the number of customers over the next 12 months.
“Internet service providers are not providing the infrastructure to reach remote areas. Satellite broadband is a quick and easy solution”. He says KBO will also be looking at developing sales in new areas. Earlier this year it supplied broadband to 10,000 users at Bloom in the Phoenix Park. “We are looking at supplying broadband for other once off installations such as concerts and sporting events.’
The company also expects to grow their Sky Sales and Installation business. Mr O’Dea says that the launch of a new broadband service by Sky will lead to increased business for KBO.
Now achieving a turnover of €4m, KBO aims to grow this to €10m by 2017.
Company: KBO
Managing director: Eamon O’Dea
Staff: 30
Business: Satellite installer for TV and broadband.
Turnover: €4m
Website: www.kbo.ie
