How one Rural Co-op Soves the disparity of Services... and offers members a Risk-Free Solution To Do The Same

As a Co-op, we know what our Co-op Members Need Intellicom provided a low-risk, low-cost alternative to Internet ISP entry. Central Virginia Electric (CEVA) was satisfied and confident to offer this turnkey, new service to its members to be able to diversify into the Internet. Its time is here. "We chose Intellicom because the satellite is independent of T1 lines, which are expensive in the rural areas. Plus, they were easy to get in touch with, service is top quality and the configuration is perfect for rural areas as ours," said Greg Kelly. "In fact, CEVA is retracing the steps of our forefathers," said Greg Kelly, "who provided electricity in rural areas at competitive prices. CEVA is providing Internet access at great prices in rural areas."

Intellicom is uniquely positioned to provide alternative, cost-effective wireless Internet services and capabilities to the rapidly growing Internet/Intranet customer. Intellicom is helping CEVA expand from Electricity provider in the '30s to Internet provider for the next generation. In the rural areas surrounding the beautiful Blue Ridge Mountains of Virginia, Central Virginia Services (CEVA), a wholly-owned subsidiary of Central Virginia Electric Co-op (CVEC), has developed a new business model for Managed Internet Solutions for the Electric Utility market. But it wasnÕt easy and the hurdles were many. This mini-case study shows how CEVA and Intellicom worked to provide a solution for the 28,000 member, 14 county Co-op, enabling them to diversify and expand services cost-effectively Ð and risk-free.

Barriers to Entry Until recently, Central Virginia Electric only provided electricity, as its ancestors did in the 1930s. A recent change in the law gave CVEC the ability to expand and create a for-profit subsidiary, CEVA. As with other Co-ops, CEVA was exploring many ways to add service to its members. In 1998, the obvious new "game" was the Internet. Now, the problem was how to get the service to the rural members. According to Greg Kelly, Vice-President of Marketing, CEVA became an Internet Service Provider (ISP), in conjunction with a telecommunications group. The business didnÕt work; management services were inadequate to satisfy CEVA. After eight months of struggling with an inadequate service, the deal was off.

CEVA had attempted to enter the highly-competitive market in 14 counties adjacent to the University of Virginia at Charlottesville, charging the market rate of $19.95 per month. But between the inadequate service and a very competitive market, CEVA decided to look for alternatives. Clearly, the Internet connection was in demand. How to implement it was still a question. CEVA looked at alternatives. "Do we wait for our present service to be 'fixed' and hope that we can then offer a great service? Do we build a system ourselves?" All the answers led to excessive up front equipment costs and resources, a slow payback period, and too much risk. CEVA additionally looked into buying a previously-branded version, on which they could put their identifier. But costs, again, were not competitive Ð why bother? Another option was ruled out.

Intellicom provides the ideal rural solution Ð at a cost-effective value The perfect solution was a two-way, satellite-based solution from Intellicom. From Greg's first phone call to IntellicomÕs to installation of the system only six weeks transpired. The satellite dish was installed, the router was put in place, and the equipment was tested to make sure everything was communicating through the satellite. The system is an appropriate solution for electric co-ops because Intellicom provides the communication link without the hassles. The SkyPOP TM Internet solution package from Intellicom consists of all the components necessary to connect to the Internet over satellite. CEVA is now able to offer a turnkey service of hands-off Internet solutions to other Co-ops with the purpose of providing a value-added service to its member base. While there is still some investment in time and equipment, the system worked so well that CEVA now provides unlimited access and five e-mail accounts to its members for only $14.95 per month. In fact, CEVA is now an authorized Intellicom distributor with a Managed Internet Solution using Intellicom and CEVA-owned equipment. "We have the ability to monitor the equipment, including components and dual-redundant servers Ð there's never any downtime," said Mr. Kelly." Plus, we do the installation, start-up, operations and management, and upgrades." New ISP members only have to pay for inbound telephone calls (PRIs), market to users, and sign-up new members! CEVA made it affordable and accessible for Co-ops to diversify into new services. "

As a Co-op, our goal is to break even every year," said Mr. Kelly. "With the Intellicom package, we can expand services to our members and the members of other Co-ops, while helping lower electric rates."

Check Email
Sign-up Online
About Us
Contact Us
Tech Support
VSAT Info
State-Wide Access
Website Design
Content Filtering
Service Agreement
Press Releases