Minneapolis-based RemotePipes began as a way for businesses
of all sizes to have affordable, reliable Internet access--and that's
still the company's mission. CEO Doug Bonestroo talks about why such a
basic service can be so crucial.
How did RemotePipes get
started?
I was working for Verizon selling global dialup Internet
access solutions, and I was not that impressed with what we were
selling. I noticed that the prices we were charging for toll-free 800
dialup were very high and that there was an excellent arbitrage
opportunity presenting itself.
The second reason resulted from my
day trading experiences while at our cabin in Brainerd. I was paying $20
per month for a dialup account plus $6 per hour for 800 toll-free dialup
access and the bills got pretty expensive. Between the two reasons the
idea for RemotePipes was born.
The final step in the decision to
start the company was to meet with representatives from a large
wholesale buyer of toll-free 800 dialup to see if they might be
interested in being a customer if we could provide the right rate plans.
They were very interested, so we founded the company and started raising
money to build our 800PipeR network that has served us well since June
2000.
What got you personally interested in doing this
work?
I have always had a strong interest in technology and I
discovered that I enjoyed selling high-tech solutions. After being in
tech sales for over 20 years, I have not lost my passion for it.
Starting RemotePipes gave me the opportunity to sell a service demanded
by the public and defined and developed by me and the rest of our team,
so we get to sell a service that we really want to
sell.
Why do you feel there's a need for what you
provide?
We knew intuitively that there would be strong demand for
a best-of-breed remote access service and we were right about that. That
said, InStat/MDR has published research that states that remote Internet
access is the number one telecom-related need of SMBs. This research
just got us even more excited about what we are doing.
Additionally, we sign up dozens of new customers every day from
countries around the world and all we do is advertise on the Web. This
shows that there are people everywhere that are actively searching for a
service such as ours, that they are finding and signing up for the
service, and that they are willing to continue to add funds to their
accounts over time. The need is huge, and the difficult part is letting
people know that we are here to meet that need.
What makes
your company unique?
Our company is unique in that we are the only
global aggregator of Wi-Fi and dial-up services that is focused on small
and medium-sized businesses and organizations. Our competition focuses
on the Fortune 2000, and we are happy to work with the small entities.
Our workforce is unique in that we are a bunch of self-motivated
people that do not need or want to be micro-managed. Everyone has a job
and they do it well, and we all have learned to trust each other with
regard to the skills that each brings to the table. We are very team
oriented and highly productive with zero extra baggage.
What type of trends do you think the next year will bring
in your industry?
Mobile wireless will continue to grow in
popularity and everyone will be hearing more and more about 3G and
WiMax. These will be the biggest news topics.
What kind of
challenges is the company facing?
Like all telecommunications
companies worldwide, we have been through a tough four years and we are
just now seeing some optimism in the industry. There is still too much
capacity which is putting severe pricing pressure on all telecom related
services and that will not change in the next few years.
Our cost
of capital is also way too high, relative to the cost of capital paid by
larger public companies. As a result, we will most likely merge with
another [slower growth] telecom to lower our cost of growth capital and
drive out costs.
Do you know a Twin Cities
company we should cover? Let us know about it. Send your local profile
candidates to dan@computeruser.com.
