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Dallas firm buys Accelacom
Robert J. Terry
Baltimore Business Journal, Mar 29, 2005

Accelacom, which wirelessly connects Baltimore businesses to the high-speed Internet, has been acquired by airBand Communications, a Dallas-based player in the growing fixed wireless industry looking to expand its geographic reach.

With the deal, airBand Communications gets a 450-square-mile wireless network that covers downtown and touches Hunt Valley, White Marsh, Essex, Columbia and the business corridor anchored by Baltimore/Washington International Airport, as well as a stable of clients that includes Under Armour Performance Apparel and nine area hospitals.

Accelacom's 15 employees will join airBand, both companies said. Accelacom President Christopher J. Camut becomes airBand's mid-Atlantic region vice president.

"Fixed wireless provides a strategic and cost-effective alternative for enterprises seeking broadband connectivity," airBand CEO Andrew Lombard said in a statement. "As we sought to expand our offerings, Accelacom's complementary network architecture, strong service record and profitable business model met our most important criteria."

Accelacom was initially launched as a fiber player, wiring buildings with high-speed networks without digging up streets and sidewalks. As the tech downturn took hold, the business model fostered too much capacity and not enough customers. The company refashioned itself into an Internet service provider, going after businesses that spend anywhere from $1,000 to $10,000 a month for high-speed Internet connectivity and need a less expensive, more flexible solution.

Accelacom reached profitability in 2003 before taking on an aggressive growth strategy. Camut looked for small wireless startups to buy before deciding to close a $5 million private equity round late last year.

Accelacom used some of that cash infusion to expand into Philadelphia. Its 2004 revenue reached $2 million. Camut also launched a residential subsidiary, called Bingo Broadband.

Terms of the deal weren't disclosed. Camut said Accelacom customers will enjoy business as usual while being able to take advantage of a wider array of service offerings, including Internet telephone service.

In-Stat/MDR, an industry research firm, predicts the fixed wireless market will grow from $558 million last year to $1.2 billion by the end of 2007 as wireless technology standards become more commonplace.