SpringNet launches small-biz gigabit service

Adam DeVizia: Gigabit service could inspire startups to locate downtown.

City Utilities of Springfield’s SpringNet Broadband is moving full-speed ahead to offer high-speed gigabit Internet service for downtown’s small businesses.

After conducting a pilot program for most of the year at the Kresge building at the corner of South Avenue and McDaniel Street, SpringNet Broadband announced earlier this month small businesses can purchase the fiber service with a three-terabyte data download cap starting at $150 per month.

Jody Chaffin, president of Interactive Dynamics, a software application and computer-equipment development firm with an office at the eFactory and a production facility in Strafford, said SpringNet’s small-business program should help Springfield compete with Nixa and Ozark. The bedroom communities secured gigabit Internet service through Suddenlink Communications in July as part of the provider’s $250 million Operation GigaSpeed infrastructure plan throughout 16 states. The city considered developing its own gigabit service before Suddenlink met the demand.

“Nixa and some cities in the surrounding areas are really competing for companies,” Chaffin said. “Springfield has to have these options to attract and retain people.”

Gigabit service has become prized with businesses and municipalities alike because services with 1 gigabit per second are roughly 100 times faster than traditional broadband.

In the first week of availability for the small-business program, SpringNet Director Jeff Bertholdi, said five contracts were in the works with unnamed parties as of Dec. 10.

He said the equipment tested in the pilot stage was working well and combined with positive user feedback influenced the decision to move forward with the program designed to draw particularly technology firms to downtown.

“The timing was very good,” Bertholdi said. “Of course, it does support IDEA Commons and that purpose and mission of that part of downtown to expand technology and do some innovation and offer growth opportunities for young startups. It supports them as well as just downtown revitalization.”

At The eFactory – a business incubator within Missouri State University’s IDEA Commons designed to foster innovation, design, entrepreneurship and the arts in center city – Internet service is provided to companies via Missouri Research and Education Network, aka MoRENet.

Chaffin said his growing firm is beginning to consider its options.

“We’re going to have to eventually find space outside of The eFactory, and that’s one of those things that has been on my mind – where am I going to find affordable, high-speed Internet?” Chaffin said, adding his 23-employee firm likely has already surpassed SpringNet’s small-business revenue threshold.

Bertholdi said eligible businesses must be new customers located within its downtown boundaries and with annual revenue under $2.5 million. The program’s boundaries are between Elm Street and Chestnut Expressway, and Grant and National avenues.

The entry-level SpringNet plans for businesses across the Queen City begin at $300 per month.

Adam DeVizia, creative director and co-founder of Springfield-based video production and graphic design firm Beyond Creative LLC, said startups like his could be encouraged to launch in downtown if they know gigabit service is available and it wouldn’t break the bank.

“We’re moving large amounts of data every day, so the faster we could do that, the more productive we could be. The less time we’re waiting on files makes us more agile and nimble in being able to respond to clients,” DeVizia said.

Jim Michels, former owner of downtown co-working space The Creative Foundry, was among the early adopters in SpringNet’s pilot program. The company shuttered operations this fall after several clients moved out and Michels relocated his software business, Streamix LLC, to his home.

“I have awful, pathetic Internet now, and I miss my SpringNet,” he said. “It’s a really good program, and it’s something that I think is a really important thing for CU to do for economic development.

“I don’t think it’s the best offering they could do, but I think it’s a really good start.”

Michels said the service worked well, but SpringNet should adjust its pricing structure.

“The caps they have now make it useful for a very small office. Let’s say you had a startup with two people and you grew to a dozen people, you’re prices would go up dramatically,” he said.

During the roughly eight months The Creative Foundry participated in the pilot program, he said the $150 monthly rate moved to $280 and as high as $430 a month, based on usage volumes.

“The opening price of $150 for a small business is great. I just think there should be more elbow-room in there,” Michels said.

Bertholdi said the program would be re-evaluated in December 2016. A benchmark is at least 20 companies signed on by then.

“I’d like to see 50 new businesses come on – that’s kind of the targeted goal. Anything over that would be awesome,” he said.