Open Range Communications

About Open Range Communications

Open Range Communications was a Colorado-based telecommunications company incorporated in 2004 by founder and CEO Bill Beans Jr. Beans, who holds a degree in Construction Engineering and had a background in telecommunications with roles at AT&T Local Services, ICG Communications, and TeleTech Holdings, launched the company to provide wireless broadband and voice services to rural and underserved communities across the United States.

The company's business model focused on deploying WiMAX (Worldwide Interoperability for Microwave Access) network technology to offer high-speed internet and digital phone services in areas with limited connectivity. Open Range aimed to make its services available to approximately six million people across more than 500 communities in 17 states. Its services were designed to be portable and secure, utilizing licensed spectrum and leveraging existing infrastructure like building rooftops and water towers to mount equipment, with the construction of new towers as a last resort. The company planned to offer internet plans with speeds of at least 1.5 Mbps for under $40 per month and voice services for less than $30 per month.

A significant milestone occurred in 2008 when the U.S. Department of Agriculture's Rural Utilities Service (RUS) approved a $267 million loan for Open Range, the largest loan the agency had granted to a single company. This was supplemented in 2009 by a $100 million equity investment from One Equity Partners, the private equity arm of JP Morgan Chase. However, the company faced substantial operational and regulatory challenges. It encountered issues with the spectrum it intended to use from Globalstar, which did not meet FCC compliance, and later faced delays in funding from the USDA, which found the company was targeting areas that were not considered rural or already had broadband service. The company aimed to serve six million customers but only managed to acquire 20,000. Faced with cash-flow problems, the company revised its plan down to 160 communities, conducted massive layoffs, and ultimately filed for Chapter 11 bankruptcy on October 6, 2011. The company's assets were later auctioned off in early 2012.