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Dallas firm uses venture funds for Austin growth
Austin Business Journal
February 24, 2006

Dallas' Airband Communications Inc. is earmarking some of its new $8 million round of funding for an expansion into Austin.

Last year, the company hired Mark Spagnolo, former CEO of Austin-based Broadwing Communications LLC, as president and CEO and John McLeod, former chief operating officer at Broadwing, as vice president of operations and technology to expand the company's markets.

As part of the Austin market expansion, Airband will open an office in the Arboretum area and add sales and technical employees. Initially, the company will employ three people in Austin.

Aside from Austin, the company plans to enter the San Antonio market. Airband already operates in five markets: Dallas/Fort Worth, Houston, Phoenix, Philadelphia, and Baltimore. McLeod says the company chose Austin because of its pool of current and potential customers. Airband plans to put up two antennas in Austin - one near the University of Texas campus and one in the Arboretum area.

"We really want to take off," McLeod says "It's a great city and the potential is enormous."

The company has nearly 2,000 business customers, including Continental Airlines, Inc., Fujitsu Ltd., and Solomon Smith Barney.

Airband, founded in 2000, once was on the fast track to expand nationally. Then the telecom bust hit, causing it to put its expansion plans on hold.

Now that the economy is back on track, Spagnolo says, the company is moving full steam ahead, with an eye toward Austin as its first new market in 2006.

Airband uses fixed wireless technology to provide high speed Internet access and voice-over-Internet phone services for medium size businesses. The company's fixed wireless network bypasses traditional copper lines installed by phone companies, resulting in faster connections.

The Company raised the $8 million from new investor Key Venture Partners, which led the round, and from existing investors Sevin Rosen Funds, Crescendo Ventures and Dolphin Equity Partners. Ted Mocarski, managing director of Key Venture Partners, has joined Airband's board of directors.