Bandwidth Pool puts internet providers in the same boat for buyers

We take internet access for granted, but a reliable connection is crucial to the success of many businesses. Of course, a stable network with breakneck speeds isn’t cheap—especially for larger companies. Ben Anderson thinks he can save office-based buyers bags of cash—and a lot of grief—with his new venture, Bandwidth Pool. …

Bandwidth Pool promises to give businesses more choices for internet service providers.

We take internet access for granted, but a reliable connection is crucial to the success of many businesses. Of course, a stable network with breakneck speeds isn’t cheap—especially for larger companies.

Ben Anderson thinks he can save office-based buyers bags of cash—and a lot of grief—with his new venture, Bandwidth Pool. “So often people will come up to me and say that they’re still unhappy with their internet service,” he said, “but they don’t feel like they have any options.”

To help businesses bypass the “shopping around” phase, the Cedar Rapids startup has partnered with 19 internet service providers to create a bidding environment for its customers. A $99 deposit gets buyers in the door, where the site shows providers in their area, solicits bids from those providers and allows the buyers to negotiate their contract directly. Bandwidth Pool then gets sales commissions from the providers, which vary widely depending on promotions and profit margins.

Think of it like buying a used car. If you found two 2005 Corollas with similar mileage at two dealerships in town, you could leverage the availability to work out a lower price. Bandwidth Pool operates with the same logic, only they simplify things further by putting important information in a single ecosystem.

Streamlining the process is helpful, but Bandwidth Pool stands out by convincing providers to compete. “Internet access isn’t anything that’s new, and getting quotes isn’t new,” Anderson (right) said. “But engaging the provider in a bidding environment that helps lower the price for the buyer, that’s something that gets me excited.”

The idea sprouted from challenges at Anderson’s first entrepreneurial effort. After graduating from the University of Iowa, he founded X-Wires, a company that provides internet access to multi-user environments like college dorms, in 2002. As the business grew, Anderson landed a partnership with a large student housing company and they tasked him with finding a provider in Texas.

So Anderson made calls, did research and negotiated a contract.

One year later, the relationship crumbled. It turned out the Texas company wasn’t as reliable as advertised, and Anderson’s biggest customer wanted out. “That ended up losing us good business, a good relationship and a good reference,” he said.

Anderson built Bandwidth Pool specifically for that problem. After selling X-Wires, he hatched the idea for a feedback-based, information-rich internet service constructed in a bidding context. Following almost two years of development, he launched Bandwidth Pool on Feb. 26. He’s had $75,000 in angel investment from those who were with him for X-Wires and has put $50,000 of his own money into the venture.

Now, Anderson’s main opposition comes from internet brokers like X-Wires; plus, anyone can google providers in their area. But he’s betting that supplying customer reviews and a more competitive pricing structure will help Bandwidth Pool come out on top.

The buyer gets reduced pricing, but what’s in it for the providers? Based on current strategies, a way to optimize their resources. “The statistics that we have show that for every 100 calls, about 3-5 of those calls actually turn into a closed sale,” Anderson said. “We want to bring qualified buyers to the table. I can’t wait for the day that we have enough data to show that we have a close rate of, say, 70 percent.”

To hit that goal, Anderson wants to bring his two part-time sales people on full-time and add up to six full-time positions to target new buyers from there. Plus, that provider base is always growing: Anderson says he’s in serious discussions with three new sellers, and believes there are more than 250 potential companies that could join the Bandwidth Pool system.

With seller support and customer value, Anderson’s vision might finally bridge the provider-service internet gap.

Here’s a Bandwidth Pool promotional video providing an overview of the company’s offering:

 

Credits: Screenshot and video from Bandwidth Pool on YouTubeBen Anderson photo from LinkedIn.

This story is part of the AIM Archive

This story is part of the AIM Institute Archive on Silicon Prairie News. AIM gifted SPN to the Nebraska Journalism Trust in January 2023. Learn more about SPN’s origin »

Get the latest news and events from Nebraska’s entrepreneurship and innovation community delivered straight to your inbox every Wednesday.

One response to “Bandwidth Pool puts internet providers in the same boat for buyers”

  1. Milen Videnov Avatar
    Milen Videnov

    Very nice article, thank you! However, if you don’t want
    your internet connection to be slow and expensive you should compare all
    opportunities that all the internet service companies offer you. As you can
    guess it’s not easy at all – it will cost you much time. But there is easier
    way – to use a specialized website that provides such services. I suggest you
    to look at http://www.bestcheapinternet.com/ where you can compare all offers
    and choose the cheapest(best) one for you! s