PRIMUS Advances its Broadband Internet Strategy With the Acquisition
Of Digitalselect, a Provider of xDSL Services
MCLEAN, Va., Nov. 18 /PRNewswire/ -- PRIMUS Telecommunications Group, Incorporated (Nasdaq: PRTL - news), a facilities-based global communications company offering a portfolio of bundled domestic and international voice, data and Internet services, today announced it has acquired substantially all of the assets of closely held DigitalSelect LLC, a provider of xDSL (multiple speed digital subscriber line) Internet access services to small and medium-sized enterprises (SMEs). Terms of the acquisition were not disclosed.
Founded in 1998, DigitalSelect provides broadband Internet access, web hosting, and other value-added services to over 2000 SME customers. The company delivers DSL and other integrated communications services on a national basis via agreements with Covad Communications Group, Inc. (Nasdaq: COVD - news) and NorthPoint Communications Group, Inc. (Nasdaq: NPNT - news). DigitalSelect owns and operates its own high-capacity network utilizing equipment from Redback Networks, Inc. and Cisco Systems, Inc. that extends to major metropolitan areas,
including Washington, DC, Northern Virginia, Atlanta, and Raleigh. The company markets its services nationally through a direct sales force and a network of value-added resellers.
''DigitalSelect is the latest development and most significant strategic investment to advance PRIMUS's DSL initiatives,'' said K. Paul Singh, Chairman and Chief Executive Officer of PRIMUS.
''Offering DSL services for nearly two years, DigitalSelect provides PRIMUS with an accelerated entry into the high speed, broadband Internet access arena. This acquisition brings us an experienced management team, direct sales and marketing channels for national coverage, an established operating support system, and a scalable Internet Protocol (IP) network. In the fast-paced, high-growth market for DSL services, we believe time-to-market is of critical importance to all entrants in building a sustainable presence.''
Leveraging its world-class, broadband fiber optic and satellite network that is intended to cover 80% of the global telecommunications market, PRIMUS has defined its strategy to participate in the global market for data/Internet services. DSL is one of five core operating units -- the others include global ISP operations, data/virtual private network (VPN)/IP services, satellite bandwidth services,
and web hosting. Over the last few months, the DSL business unit has made considerable progress with the strategic alliance agreements signed with Covad Communications and NorthPoint Communications.
DSL technology allows for secure high-speed Internet access using the existing copper phone wires. Radically transforming the way users connect and communicate, DSL connectivity is ''always on,''
removing the need to dial-in each time a user wants to browse the web, send or download e-mail and conduct research, and eliminates delays, busy signals and other access problems. Access speeds for DSL service can reach up to 1.5 Mbps, 12 times faster than ISDN's 128 Kbps and up
to 50 times faster than most dial-up modems. With benefits that include faster speeds, immediate access and security, DSL is ideally suited for SMEs, organizations and residential users because it is
efficient and cost effective.
Commenting on how PRIMUS intends to capitalize on the significant demand for and capabilities of DSL services domestically and internationally, Mr. Singh added, ''Benefiting from the added
expertise and personnel that DigitalSelect provides, PRIMUS will utilize DSL technology to provide integrated voice, data and Internet services on a bundled basis. PRIMUS plans to offer high-speed
Internet access that will feature bundled DSL packages that include web hosting, site creation and e-commerce tools, domain name registration, security options, unified messaging, web conferencing,
group contact management tools and other powerful tools to help companies and individuals participate in the Digital Economy. These services will also be bundled on an integrated platform with
PRIMUS's voice-based products.''
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