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Omnicity Corp. (OMCY.OB) Sees Clear Path to Rapid Growth

Source: http://Blog.QualityStocks.net/?p=19065
Posted on Thursday, November 5th, 2009 | In Investing Lessons, Small & Micro Cap
Contributed by: QualityStocks (http://QualityStocks.net) -

Omnicity Corp wants to be rural America’s premier telecommunications and broadband Internet Service Provider. The company has developed a business model that has proven successful in thousands of rural Indiana homes, providing high-speed Internet service on a mass basis at a lower cost and more efficiently than wire or fiber optic solutions. With this model in hand, Omnicity is now growing rapidly through acquisitions with the goal of capturing the underserved and unserved rural and small town markets throughout America.

The majority of rural homes do not yet have access to broadband service. Cable is often unavailable, and DSL service is usually limited to urban/suburban areas. Traditional dialup service is simply no longer a viable solution, due to the growing audio/video content of the Web. Omnicity estimates that there are currently over 40 million homes, businesses, and other users in the rural U.S. that do not yet have adequate Internet service, representing a major growth opportunity for the company.

This growth is also expected to be fueled by the federal government’s strong support for the expansion of broadband, which recognizes that high-speed Internet service is now critical to a community’s potential for economic growth. A key part of this is the American Recovery and Reinvestment Act of 2009, providing $7 billion for broadband expansion, $2.7 billion of which is to be dedicated to rural areas.

Using advanced wireless technology, Omnicity is confident that they can reach those underserved markets at a lower cost than any of its competitors, providing voice, video, and data. Through acquisitions and partnerships, Omnicity projects a customer base of 170,000 subscribers over the next 5 years, generating revenues of approximately $87 million. In addition, the company expects to further spur growth through new services and products developed by its own R&D efforts.

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