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Technology Stocks : PSIX up 26.5%, Takeover(?)
PSIX 77.18-1.9%3:59 PM EST

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To: Curtis Gruber who wrote (1621)12/14/1997 6:11:00 PM
From: Curtis Gruber  Read Replies (2) of 5650
 
looks like my one dish didn't come out so good, must've baked it too long at 375.....hmm..alright I will post the whole article below.

So Schrader said he has been approached....nothing new, everyone knew PSIX was up for sale all of last year just about and this year too, guess it is just like he said, he is not letting his pride and joy go without someone accepting his big sticker price.

<<<<<<
EDITOR'S NOTE:PSInet has the distinction of being the oldest for-profit
Internet service provider and the last of the large, independent East Coast
ISPs. The Herndon, Va.-based company also is the last major ISP to be run
by its founder, William Schrader, who remains president, chief executive and
chairman of the board. PSInet is one of the first ISPs to establish a program
for VARs, which now accounts for 25 percent of all sales. Schrader spoke
with CRN Executive Editor Barbara Darrow and Senior Writer Margie
Semilof about his company's place.

---

CRN:With so many ISPs partnering up with other carriers, how or why does
PSInet stay independent?

William Schrader:Whether or not we stay independent depends on the
marketplace-if we run out of cash, if we can no longer sell to our customers,
if we are no longer able to deliver.

We have limitless bandwidth, and we are tight with equipment manufacturers,
so much so that we help to determine winners and losers.

CRN:Under what circumstances would you be forced to sell to a partner?

Schrader:None. It's not a question of forcing us, it's a question of choice. So
under what circumstances would we choose to do that? If the price is so
great we can't turn it down or if the opportunity of being owned by someone
is so great we could never achieve that greatness on our own.

I can confirm that we've been approached, but that's about it.

CRN:Often, the founder of a company is not the best person to take that
company to the next level. Why are you right for the job?

Schrader:As a board, we address this question frequently. When it's apparent
we need a change, we will make that change. I'm the one that brings it up at
every board meeting. I say, 'Is it time yet?'

Sometimes the discussion lasts a couple of minutes, sometimes a little longer.
We have several Internet gurus in this company in sales, marketing and
technology. They are teaching me how to run the business better.

CRN:When will PSInet be profitable?

Schrader:We can't know. The Internet is still in the investment phase. It costs
a lot to build our systems.

The profit comes when you fill the network with paying customers. Unless
you own the fiber, you can't make a big profit. So we just bought 10,000
miles of fiber. If we fill that one-tenth of the way, we are profitable.

CRN:What is your strategy for improving your network infrastructure?

Schrader:The network has a lot of components. We can pick and choose the
best components and integrate [them] into one unified system. We are waiting
until our fiber is online.

When we do, you will see us introduce multimedia support operations, which
are special services that have applications and transition strategies that help
customers drift from their legacy environment to the new environment.

In the next two years, it will be complete, but in the first half of next year,

it should start to roll out.

CRN:What is your timetable for introducing voice on the Internet?

Schrader:Everyone on Wall Street and the industry wants to know when
voice on the Internet will dominate over voice on the regular network. We
will be running trials next year. We are already running them in the lab.

CRN:Are we seeing the last generation of [central office] switches?

Schrader:You might say you have seen the last generation of the current
non-IP CO switches. I think the 5ESS and SS7 environment will be modified
before the next evolution.

CRN:Who should control the Internet?

Schrader:This is the most robust network architecture ever created because
there is no one in charge.

Nothing can stop it. Governments can't stop it. The U.S. government once
said we must stop using TCP/IP and start using OSI, and we all said, 'Right.'

There is a constant battle over who controls the Internet. Those who are
typically in charge of controlling things, ITUs or Internet societies, they want
to control things.

There is no control. There is a fabric of consensus building that goes on. The
[Internet Engineering Task Force] sets standards for the adoption of
technology. If you don't comply with the RFC, then your product may not
work, or maybe it will.

If it doesn't work, the market won't let you survive economically.

CRN:What is PSInet's philosophy on spamming?

Schrader:There are two kinds of abuses. There are negligent spams, which
are intentional, but they are just annoyances. Then there are the dangerous
ones. We work actively with law enforcement to go after everyone.

For the nonlegal issues, it becomes a policy issue.

We are going for the industry standard, that is, you cannot do blast E-mails.
[And] the other side to all of this is there is a delete button.

>>>>>

Ok, so it's a little longer than I thought....sorry

regards,
cg
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