For the majority of households across the United States, the choice between cable and fiber internet service is simply not available. In select, densely populated urban areas with supportive landlords, customers may have access to both options. However, as internet reliance grows – extending beyond basic usage to include essential activities and even entertainment – the need for greater choice and increased competition within the market is becoming increasingly apparent.

WeLink, a company headquartered in Utah, aims to provide this alternative. By leveraging advancements in 5G millimeter spectrum technology and the decreasing cost of hardware, the startup is developing a wireless mesh network of base stations capable of delivering high-speed data transmission throughout neighborhoods with relatively low infrastructure installation expenses.

This innovative approach has attracted significant investment, with Digital Alpha Advisors, a venture capital firm specializing in telecommunications and closely associated with Cisco, providing $185 million in funding through a combination of equity and a debt facility linked to revenue sharing – a financing model akin to securitization within the hardware sector. Digital Alpha’s Rick Shrotri and Neil Sheridan will be joining WeLink’s board of directors.

The company was established in 2018 by CEO Kevin Ross and CTO Ahsan Naim. Ross had been exploring wireless internet possibilities since 2005, but the technology at that time was immature and prohibitively expensive. “I was ahead of the curve by approximately 20 years, perhaps 15, and spent a considerable amount of time anticipating the technology’s commercial viability,” Ross explained. He previously founded a company in this field, which was later acquired by Vivint, a smart home provider formerly owned by Blackstone and recently merged with a SoftBank subsidiary in a $6.5 billion transaction. Luke Langford, who oversaw the acquisition at Vivint, subsequently joined WeLink as president and COO after a period at Lucid Software.

Wireless internet solutions have been explored for over a decade, with limited widespread success. Ross believes that the combination of dependable millimeter-wave 5G technology (operating around 60-70 Ghz) and substantially reduced hardware costs has finally enabled the delivery of high-quality wireless internet service. (It is worth noting that TechCrunch maintains editorial independence from its parent company, Verizon, which does offer fiber optic internet service.)

WeLink’s system utilizes a mesh network, allowing signals to be relayed between various base stations within a neighborhood to connect to a central station with a fiber optic connection. A compact base station (approximately four inches by four inches) is installed on the roof of a typical home, resembling a satellite dish, and a single cable connects it to the home’s router or Wi-Fi system.

Ross states that WeLink does not require a high concentration of users to achieve comprehensive coverage. “A take rate of just a few percentage points within a neighborhood is sufficient to provide blanket coverage. We typically see rates exceeding 5% relatively quickly.” With a higher adoption rate, such as 10%, “the system benefits from significant redundancy,” Ross added. The company advertises speeds “Up To 940 Mbps Download/Upload,” though actual performance will vary. This symmetrical bandwidth is advantageous for activities like video conferencing and large file transfers, particularly in today’s remote work environment.

He also highlighted the ease of deployment, noting that the company requires minimal approvals from local municipalities. “Permitting is only required at our fiber connection points, and these requirements are minimal.”

WeLink has initially launched service in Henderson, Nevada, near Las Vegas, and is expanding into Arizona with installations in Tucson and Phoenix. The company plans to extend its reach to 10 markets in the coming years. The most suitable markets are suburban neighborhoods and communities that offer sufficient density for the mesh network to function effectively, while also having a physical environment that allows for clear line-of-sight between antennas. “We are primarily targeting the suburban areas surrounding major cities,” Ross said.

The service is priced at $80 per month with a month-to-month agreement, or $70 per month with a two-year contract. After the initial two-year period, the monthly rate is reduced by $10 as a “loyalty discount,” according to Ross.

Langford, the COO, emphasized Digital Alpha Advisors’ connections with Cisco as a key factor in their decision to partner with WeLink. “The affiliation with Cisco provides us, as a startup internet service provider, with the ability to engage with leaders in networking technology. This was certainly an attractive aspect of the investment,” he said. “They were comfortable investing in a company dealing with physical infrastructure, not just software.” Langford also noted the benefits of the debt financing model, stating that “it allows us to minimize dilution while still securing the capital needed to expand our customer base.”

Other wireless internet startups exist, most notably Starlink, which is backed by satellite technology. Ross believes that WeLink does not directly compete with Starlink, as WeLink’s bandwidth is significantly higher and more reliable due to its 5G mesh architecture. He views Starlink as primarily targeting the rural market, where traditional internet technologies like cable and fiber are less feasible.

This substantial venture funding represents a significant investment in the 5G space, and hopefully will provide families with increased competition and improved access to high-bandwidth internet service.