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Allegiance Telecom and Go2Net Form Strategic Alliance
Leveling the Playing Field -- Unique Web-Based Applications for Small-Medium Sized Businesses
DALLAS and SEATTLE, Dec. 16 /PRNewswire/ -- Allegiance Telecom, Inc. (Nasdaq: ALGX) and Go2Net, Inc. (Nasdaq: GNET) announced today that they have formed a strategic alliance to develop web-based applications for the small and medium-sized business user, which will help put these businesses on a level playing field with large corporations. Plans call for the development of a customized Allegiance private-label Internet portal, an on-line small business center and a web-based platform for applications hosting.
The Allegiance private-label portal will provide a comprehensive Internet start page for Allegiance customers, incorporating customizable news, communication services (including e-mail, calendaring and instant messaging), discussion and stock information. It will also provide direct access to Go2Net's branded finance, search and small business offerings. The portal will feature the industry-leading search capabilities of MetaCrawler, the personal finance information and discussion features of Silicon Investor and direct access to the Allegiance private-label Small Business Center, which will provide an array of business resources and transaction services.
"It's a natural alliance, since we're combining the strengths of both companies to create tools for small-medium sized businesses to embrace the Internet and its wealth of resources," said Royce Holland, chairman and CEO of Allegiance Telecom, Inc. "Allegiance brings to the table three key components: a large sales force trained in selling to small-medium sized businesses, a fast-growing customer base, and an existing Internet service offering. When you combine that with Go2Net's assets, which include content and technology aggregation, large-scale portal infrastructure and excellent industry connections, you end up with a perfect marriage between content and distribution."
"More and more businesses are going to have to use the Internet to streamline their business processes, integrate suppliers and reach new customers, otherwise they will find it difficult to compete," Holland added.
Trends are certainly moving in this direction. Morgan Stanley Dean Witter in 1999 estimated that within the next five years the e-commerce market will reach over $2 trillion, or 20% of the U.S. economy. They also estimate that:
-- Total IDS (Internet data services) revenues will reach a projected
$69 billion in 2003, from $19 billion in 1998. Access revenues should
rise close to $50 billion, while virtual private network (VPN) and
web/application hosting services should jump $20 billion by 2003, from
only $1.5 billion in 1998.
-- Only 10% of U.S. businesses had an active web site in 1998 -- this
figure should increase to 60% in 2003 (small and medium-sized
businesses account for 99% of all business and 50% of the U.S. economic
output).
"This is a significant entry for Go2Net into the private-label portal sector, as we are committed to aggressively expanding the distribution of Go2Net's brands and technologies through leading corporate partners, such as Allegiance Telecom," said Russell C. Horowitz, Go2Net chief executive officer. "What stands to set Go2Net apart in the private-label portal category is that we are providing direct access to our own leading brands, such as MetaCrawler, Silicon Investor, and Authorize.Net. As Allegiance continues to expand its customer base, we're looking forward to extending Go2Net's offerings to users of both the private-label portal and Small Business Center."
Both Allegiance Telecom and Go2Net have received significant investments from Paul Allen's Vulcan Ventures during the past year, as part of Mr. Allen's "wired world" convergence strategy.
Leveling the Playing Field
Following are the three key phases of the plan for leveling the playing
field:
Phase One: Go2Net will develop a customized Internet portal which is
intended to attract and retain Allegiance customers and serve as a
platform to sell customers a number of value-added services. It has
numerous features, including current information (news, stock
portfolio), communications (calendar, e-mail, contacts, instant
messenger), resources (search, weather/maps, yellow pages, knowledge
links), community (forums, discussion database), customer care (link to
Allegiance's customer support). The portal will also feature the
industry-leading search capabilities of MetaCrawler, the personal
finance information and discussion features of Silicon Investor and
direct access to the private-label Allegiance Small Business Center,
powered by Go2Net. Additions to the customized portal will be made on
an ongoing basis.
Phase Two: Go2Net also will develop a private-label Small Business
Center for Allegiance, which will be available through the customized
Internet portal. When using this Small Business Center, Allegiance's
customers will be able to gain access to an array of resources with the
click of a button. For instance, they'll find links to deals on office
supplies, information about incorporating, trademark registration,
chambers of commerce, the Better Business Bureau, the American Bar
Association, Federal regulations code, communications services,
financial services, government agencies and more. The Small Business
Center will also provide Allegiance's customers with world-class
transaction services, such as real-time credit card processing
(provided by Authorize.Net), on-line payroll and on-line educational
courses.
Phase Three: Plans include collaboration on a web-based platform for
applications hosting. For example, Allegiance's typical customer has
20-25 employees, which is too small to license PeopleSoft, Oracle or
A.G. Edwards financial applications -- resources that are, once again,
most often found in large corporations. These resources would be made
available to them via the web, at much more affordable prices.
About Allegiance Telecom, Inc.
Based in Dallas, Texas, Allegiance Telecom is a facilities-based competitive local exchange carrier that offers businesses a complete package of telecommunications services, including local, long distance, international calling, high-speed data transmission and Internet services. The Company is targeting 24 major metropolitan areas in the U.S. with its "one-stop shopping" approach. Allegiance is currently operational in 19 markets, including Atlanta, Baltimore, Boston, Chicago, Dallas, Detroit, Fort Worth, Houston, Long Island, Los Angeles, New York, Northern New Jersey, Oakland, Orange County, Philadelphia, San Diego, San Francisco, San Jose and Washington D.C. The Company's web address is: www.allegiancetele.com . Allegiance's common stock is traded on the Nasdaq National Market under the symbol ALGX. |
