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Business News/ News / World/  This man, who built own Internet network to avoid paying bills, gets 21 crore from government for expansion

This man, who built own Internet network to avoid paying bills, gets ₹21 crore from government for expansion

Jared Mauch spent roughly 1 crore, of which 75 lakh was paid to the contractor who set up the majority of the fibre conduits.

Jared Mauch solved the problem of poor internet at home by creating his own fibre-Internet service.

Jared Mauch, who lives in a rural area of Michigan, solved the problem of poor internet at home by creating his own fibre-Internet service. Mauch, who works as a senior network architect for Akamai, moved into his home in 2002. He acquired a T1 line at a time when 1.5 Mbps was considered to be an excellent Internet connection. Mauch anticipated that as broadband technology developed, an ISP would eventually install cable or fibre in his home. It never took place.

Later, he changed to a wireless Internet service provider that offered 50Mbps of speed. When Mauch contacted Comcast at one point, the company estimated it would cost $50,000 to connect its cable network to his home.

Also Read: Jio’s Har Ghar Tiranga, Har Ghar JioFiber initiative: Eligibility & benefits

Mauch received DSL from AT&T, the incumbent phone provider, roughly five years ago, according to him. However, the top speed of AT&T's announced plans for his neighbourhood was a meagre 1.5Mbps, which was adequate in 2002 but not in 2020. Users like Mauch are left without many good options because AT&T ceased providing basic DSL to new customers in October and hasn't upgraded many rural locations to newer substitutes.

Mauch claimed to have spent roughly $145,000 (over 1 crore), of which $95,000 (about 75 lakh) was paid to the contractor who set up the majority of the fibre conduits. In order to avoid gas pipes and other impediments, the fibre cables are typically six feet underground and up to twenty feet underground in some circumstances.

Jared Mauch

However, Mauch began making plans to create his own company approximately four years ago, and as a result, some areas of Lima Township and Scio Township now have fibre-to-the-home broadband service. Mauch started connecting his first customers a few months ago and has since deployed five kilometres of fibre.

Also Read: Elon Musk’s SpaceX loses Starlink rural broadband subsidies

Mauch had wired 30 homes as of the beginning of January and had about 10 more to do so. Instead of his initial estimate of about 35%, it has really been closer to 70% of potential purchasers. Mauch claims that the customers he has not yet reached out to mostly rely on cell phone service.

Mauch had anticipated spending $60,000 (around 47 lakh) on the project, but the final cost was more than twice that. Some clients contributed $5,000 (Around 3.9 lakh) upfront to help with construction costs, and in return, they will receive service credits for several years now that the network has been installed. Mauch calculates that he will reach break even in 42 months based on the amount he invested and the revenue he anticipates.

Also Read: India to have around 900 million internet users by 2025

Government funding of $2.6 million (almost 21 crore) is helping Mauch grow. For $55 per month, Mauch will offer 100Mbps symmetrical Internet with unlimited data, and for $79 per month, it will offer 1Gbps with unlimited data. Mauch stated that his standard installation costs are $199. Mauch offers straightforward bills with only one line item for Internet service and no additional charges, in contrast to many larger ISPs.

Also Read: 5G services likely to be rolled out within a month, says MoS Telecom

The United States is one of the countries with the most expensive Internet service. It stands at number 119 among 195 countries while India is at number 34. This means India is one of the countries with cheapest Internet service.

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ABOUT THE AUTHOR

Sounak Mukhopadhyay

Sounak Mukhopadhyay, who also goes by the name Sounak Mukherjee, has been producing digital news since 2012. He's worked for the International Business Times, The Inquisitr, and Moneycontrol in the past. He's also contributed to Free Press Journal and TheRichest with feature articles. He covers news for a wide range of subjects including business, finance, economy, politics and sports. Before working with digital news publications, he worked as a freelance content writer.
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