To: Frank A. Coluccio who wrote (2346 ) 1/11/1999 2:35:00 PM From: Stephen B. Temple Read Replies (1) | Respond to of 3178
NEW IP SERVICES SIGNAL WILLIAMS' METAMORPHASIS 'Seek and ye shall find business' may be the new corporate motto at Tulsa, Okla.-based Williams Communications [WMB]. On Jan. 5, the company launched a suite of fiber capacity services for Internet services providers. This comes on the heels of December announcements that it would sell frame relay and resell the wireless broadband services of New York-based Winstar Communications [WCII]. The business model is definitely in the midst of change at Williams. The company is moving from being a provider of backbone fiber capacity services to providing edge technologies such as frame relay and wireless broadband service. The new ISP Transit Services of Williams fit into the changing model. The company is installing routers and digital subscriber line aggregators on its network to support IP signaling. Williams can now extend IP connectivity to customers, instead of just offering frame relay or ATM links. The company currently offers T-1, T-3 and OC-3 IP services to ISPs. "What Williams has talked about since we reentered networking one year ago is the oncoming deconstruction model of doing business," says Matthew Beal, product manager for IP services at Williams. "An example is that in the past, there was a single mainframe computing provider than handled all aspects of computing. Now, when your company purchases a computer, there is a PC provider, software providers and a maintenance provider. Each company has a specific niche that it focuses on, and they try to do their job well." "We see ourselves as this type of company," Beal says. "We are picking a few services that we can do well and developing services in these areas." Williams plans to upgrade the ISP Transit Services throughout the year. It will add a service that carries aggregated digital subscriber line calls for ISPs. The company also plans to offer usage-based pricing for the services. Currently, it offers flat monthly rates for the service, or flat monthly rates plus a usage-based cap. Once the cap is reached, Williams charges for usage. Williams would not disclose pricing for the new IP services. ...The ISP Market Is Hot "I think this is a very good move for Williams because the ISP market is very real," says Brad Bradshaw, director at the Yankee Group, a consultancy in Boston. "Deregulation has allowed a lot of new entrants into the market and the new entrants are [competitive local exchange carriers] and ISPs. The ISPs are trying to aggregate traffic and they need backbone services." Temp'