My review of Omnicity Corp (OMCY), a public WIFI ISP based in Indiana:
RUN, don't walk away - if you are in our situation and have very few or no alternative, get Hughesnet or similar - BELIEVE me, it's cheaper in the long run, and at least you will have service.
I would strongly recommend (as a trader) that investors avoid OMCY - as the prospectus simply doesn't tell the story. It sounds great - but this company is going nowhere quickly.
We are located in a rural area of N. Central Indiana and tried another WIFI company, then a 2G solution, then Omnicity WIFI.
After CAREFULLY, THOROUGHLY verifying their service claim with Debbie (new sales) by phone on 3 separate occassions, we ordered the residential package up to 1Mb download w/static IP address. Total cost $39.95 per month ($34.94 service, $5.00 ip). From call to install was 3 business days as claimed. Installer knew what he was doing and was prepared - BUT the installer was a contractor, not from Omnicity.
Ordered 12/15/09 - solid the first 28 days, and we were very satisfied. Then on 1/13/10 the outages started.
Initially tech support answered the phone - and to their credit tech support did return most calls within 24 hours. The administrative offices did not return calls. Another note here is that at NO TIME does anyone but tech support identify themselves, not on the phone, and not in letter or email. In addition, when managers from Omnicity call the phone number is withheld!
How's that for service?!
The explanation was "tower issues" "upgrades" "new equipment". They basically had "no specific information" about what the "plans" were by administration to address the issues. I also note that Omnicity got their stories confused. One tech would say equipment was being replaced, then another would say they're working on a reboot, or something similar.
Outages were NEVER announced. In addition to the outages, up time during this period when service was available it was choppy and very erratic.
Between 1/13/10 and 2/1/10 we noted these outages:
1/13/10: 19 hours
1/14/10: 15 hours
1/15/10: 7.5 hours
1/21/10: 7 hours
1/28/10: 6.5 hours
1/29/10: 24 hours
1/30/10: 24 hours
1/31/10: 24 hours
2/1/10: 19 hours
By 2/13/10 our total downtime exceeded 200 hours in one month.
I had a conversation with "Steve" who claimed to be an Omnicity Manager - he actually called their service "a turd" - again, how professional. He said "yep, you're down - and you're probably going down again".
I filed complaints with the BBB (Omnicity receives a grade of "F" from BBB and is NOT a BBB supporting business), and the FCC.
Omnicity's answer to my complaints:
They terminated my service the day they received the letter of complaint from the BBB of Indianapolis!
They did refund my $39.95 for February - and since they decided to terminate me, I insisted (on threat of doing a chargeback with my bank and taking the money) on a refund of my $149.95 installation fee.
I am currently engaged in informing as many people as possible - DO NOT make the mistake of dealing with Omnicity.
Another interesting note:
One of the Omnicity (OMCY) directors is also a current CEO of Wabash REMC - Mr. Rob Pearson. I am currently investigating a serious conflict of interest there, as I don't believe Mr. Pearson can hold both a chair at Omnicity, and the CEO position of Wabash REMC.
Omnicity's stated goal is to establish and exploit relationships with REMC's to further market share, and profit - HOW CAN A CURRENT CEO OF AN REMC ALSO HOLD A SEAT ON OMNIICITY'S BOARD OF DIRECTORS?
At the very least, it's a serious appearance of impropriety which needs to be fully disclosed to all Wabash REMC customers/shareholders.
Monday, March 15, 2010
Monday, January 25, 2010
Indiana General Assembly - Senate Bill 309 - Property Tax increase
Below is a copy of my view on Indiana SB 309 (IN. General Assembly).
INDIANA CITIZENS MUST STOP THIS BILL - CALL YOUR STATE SENATOR NOW.
The current law in Indiana system allows school corporations to move up to 3.5% of capital
projects fund money to cover utility and insurance expense, based on numbers
from 2005, by exploiting a loophole.
THIS BILL HAS NOW BEEN UPGRADED TO AN EMERGENCY BILL - AS THE SENATE IS TRYING TO PASS IT BEFORE TOO MANY TAXPAYERS ARE AWARE OF IT...BECAUSE IF PASSED, THIS BILL WILL INCREASE PROPERTY TAX ON INDIANA PROPERTY OWNERS AN ESTIMATED $116.5 MILLION - AND THAT'S AN ESTIMATE. IT WILL ALMOST CERTAINLY TRIGGER CIRCUIT BREAKER - WHICH MEANS ALL TAXING UNITS (GOVERNMENT LANGUAGE MEANING ALL THOSE WHO TAX YOU) - MEANING THAT ALL LEVELS OF GOVERNMENT WOULD THEN TRY TO PLACE FURTHER TAXES AND FEES ON INDIANA TAXPAYERS USING THIS AS AN EXCUSE.
I contacted State Senator Randy Head (Indiana Senate District 18) with the following email:
------------------------------------------------------------------------------------------------------------------
Directly from the fiscal impact statement:
"School corporations would be permitted to increase the tax rate for the CPF
to generate the additional $116.5 M for CY 2010 and CY 2011. If school
corporations increase their CPF rates, the higher tax rates would increase
net property tax liabilities and could possibly increase circuit breaker
credits if they have been triggered. All taxing units would be affected by
the loss of revenue from any increase in circuit breaker credits."
This is why I oppose this bill, and would think it prudent for any fiscally
responsible member to do the same. This is a $116.5 M tax increase, and that
number is estimated. If circuit breaker is triggered, additional revenue
would be required - and we KNOW where that would come from.
It's real simple, and this is where average citizens get irritated, and
rightfully so. Schools and government agencies are like children, and are
not being responsible for their funds. Giving them more is NOT the answer.
This is like giving your child a $5.00 allowance this week, and he spends it
- but wants something that costs $10.00, he's going to come to you for the
$10.00. If you give him the $10, he WILL spend that money and ask for more.
The responsible approach is to TEACH your child that if he wants a $10.00
item, and receives $5.00 per week - he must SAVE for 2 weeks.
It's time to TEACH the school districts, and government agencies the same
lesson we should all have learned as kids...and we are talking about a lot
more than $10.00.
The current system allows school corporations to move up to 3.5% of capital
projects fund money to cover utility and insurance expense, based on numbers
from 2005 by exploiting a loophole. As pointed out by watchdog, and other
fiscal groups, there are ways in which shortages (most specifically
insurance pooling) can be covered, and possibly even SAVE some money based
on the current 3.5%.
The problem is that the districts AREN'T LOOKING for it - why? Because they
are counting on Mom and Dad (in this case, the General Assembly) to give
them more allowance.
So - again, I would ask that you oppose this bill and suggest to the school
coporations that they be wise with their funding. If the GA wants to help
the districts, perhaps a bill or other assistance in obtaining proper
pooling of insurance would be the correct approach?
INDIANA CITIZENS MUST STOP THIS BILL - CALL YOUR STATE SENATOR NOW.
The current law in Indiana system allows school corporations to move up to 3.5% of capital
projects fund money to cover utility and insurance expense, based on numbers
from 2005, by exploiting a loophole.
THIS BILL HAS NOW BEEN UPGRADED TO AN EMERGENCY BILL - AS THE SENATE IS TRYING TO PASS IT BEFORE TOO MANY TAXPAYERS ARE AWARE OF IT...BECAUSE IF PASSED, THIS BILL WILL INCREASE PROPERTY TAX ON INDIANA PROPERTY OWNERS AN ESTIMATED $116.5 MILLION - AND THAT'S AN ESTIMATE. IT WILL ALMOST CERTAINLY TRIGGER CIRCUIT BREAKER - WHICH MEANS ALL TAXING UNITS (GOVERNMENT LANGUAGE MEANING ALL THOSE WHO TAX YOU) - MEANING THAT ALL LEVELS OF GOVERNMENT WOULD THEN TRY TO PLACE FURTHER TAXES AND FEES ON INDIANA TAXPAYERS USING THIS AS AN EXCUSE.
I contacted State Senator Randy Head (Indiana Senate District 18) with the following email:
------------------------------------------------------------------------------------------------------------------
Directly from the fiscal impact statement:
"School corporations would be permitted to increase the tax rate for the CPF
to generate the additional $116.5 M for CY 2010 and CY 2011. If school
corporations increase their CPF rates, the higher tax rates would increase
net property tax liabilities and could possibly increase circuit breaker
credits if they have been triggered. All taxing units would be affected by
the loss of revenue from any increase in circuit breaker credits."
This is why I oppose this bill, and would think it prudent for any fiscally
responsible member to do the same. This is a $116.5 M tax increase, and that
number is estimated. If circuit breaker is triggered, additional revenue
would be required - and we KNOW where that would come from.
It's real simple, and this is where average citizens get irritated, and
rightfully so. Schools and government agencies are like children, and are
not being responsible for their funds. Giving them more is NOT the answer.
This is like giving your child a $5.00 allowance this week, and he spends it
- but wants something that costs $10.00, he's going to come to you for the
$10.00. If you give him the $10, he WILL spend that money and ask for more.
The responsible approach is to TEACH your child that if he wants a $10.00
item, and receives $5.00 per week - he must SAVE for 2 weeks.
It's time to TEACH the school districts, and government agencies the same
lesson we should all have learned as kids...and we are talking about a lot
more than $10.00.
The current system allows school corporations to move up to 3.5% of capital
projects fund money to cover utility and insurance expense, based on numbers
from 2005 by exploiting a loophole. As pointed out by watchdog, and other
fiscal groups, there are ways in which shortages (most specifically
insurance pooling) can be covered, and possibly even SAVE some money based
on the current 3.5%.
The problem is that the districts AREN'T LOOKING for it - why? Because they
are counting on Mom and Dad (in this case, the General Assembly) to give
them more allowance.
So - again, I would ask that you oppose this bill and suggest to the school
coporations that they be wise with their funding. If the GA wants to help
the districts, perhaps a bill or other assistance in obtaining proper
pooling of insurance would be the correct approach?
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