Tech evolution
Pittsburgh Business Times - by Maria Guzzo
Comtel Communications Inc. has offered its customers technology connections, such as pagers and wireless phones, at its mall kiosks around the region for years.
But now one of Western Pennsylvania's fastest-growing technology companies is focusing on a new business channel that offers its customers even more connectivity. Comtel, based in Castle Shannon, is now a Virtual Internet Service Provider.
But the CEO isn't stopping there.
Comtel CEO and chairman Patrick Bane said in addition to bundling pagers, wireless phones, satellite television and Internet service, he plans to offer natural gas and electricity services by June 2001.
"We consider all of these as utilities at this point," Mr. Bane said. "With deregulation, we can buy in bulk and resell to customers and offer them payment centers, too."
Bundling telecommunications and utility services is a business practice that companies are leaning toward more often said Arlington, Va.-based U.S. Internet Industry Association executive director David McClure. Big telephone companies, such as AT&T, Sprint and Verizon, and local firms, such as North Side-based OnlineChoice.com Inc., offer multiple services.
But before Comtel launches the traditional utilities, Mr. Bane's firm will concentrate on making the VISP model work.
Mr. McClure said VISPs use their marketing expertise without having to deal with the technological aspects of running an ISP.
A VISP purchases Internet service from an existing provider and then rebrands it as its own. Comtel will be using Strip District-based Stargate.net Inc.'s Internet service, but will rename it comtelweb.net. A Comtel Web customer's e-mail, for example, would go to joesmith@comtelweb.net.
The term VISP has been around for several years, but few companies in the Pittsburgh area are reselling Internet service.
Comtel is Stargate's first VISP. Gibsonia-based Nauticom also has one VISP customer. South Side-based FYI Networks has four VISP customers, including one that has been with it for four years, reselling Internet service in Indiana County, according to FYI's vice president of operations John Vasicek.
Mr. Bane founded Comtel in 1991 to provide wireless telephones to businesses in Pittsburgh, and expanded in 1994 to 15 retail locations in the Pittsburgh area and Cleveland. The 100-employee firm will launch in the State College/Johnstown area by 2001 and be in 10 cities by 2002 with 400 employees.
Internet service traditionally has been distributed through the Web or over the phone.
"We can serve a large niche of the younger people who may or may not have access to a credit card or who need more attention up front to set it up," Mr. Bane said.
He said malls also are popular with senior citizens. Less apt to approach the technology themselves, they could decide to purchase Internet service after a hands-on demonstration at a Comtel kiosk. Locally, it has sites at Century III, Ross Park, Westmoreland, Washington Crown Center, and South Hills Village malls along with Station Square.
Comtel offers Internet service for a few dollars less a month than Stargate.
Jon Rosenson, Stargate's director of strategic initiatives, said Comtel customers won't know they're using Stargate's technology.
"The service is transparent to the end-user," Mr. Rosenson said.
He said Stargate has a similar business agreement with Cellular One in West Virginia. But Cellular One sells Stargate as Stargate, providing Stargate with a significant portion of sales in southern West Virginia.
He said the partnership with Comtel and its mall kiosks may end up opening another sales route for Stargate.
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