To: Don S.Boller who wrote (607 ) 4/9/1999 3:39:00 PM From: Nick Papa Read Replies (1) | Respond to of 15615
Interesting article involving Frontier ++++++++++++++++++++++++++++++++++++++ Technology News Northpoint Moves Up In DSL Races (04/08/99, 8:54 p.m. ET) By Jason P. McKay , tele.com As providers of DSL race to become the broadband connection of choice for consumers and small- to medium-sized businesses across the United States, two major players have announced yet another agreement to speed the services to market. NorthPoint Communications Holdings, in San Francisco, has received a $4.9 million investment and entered into a strategic alliance with Frontier Communications, subsidiary of Frontier in Rochester, N.Y. to provide Frontier with high-speed DSL local Internet access connections for small- to medium-sized business customers in various metropolitan markets. Frontier said it plans to roll out these new services beginning around the third quarter of this year in San Francisco, Los Angeles, Washington, D.C., and New York, with 24 other U.S. markets to follow. NorthPoint, a data CLEC, is expected to go public in an initial stock offering next month, and appears to be moving full speed ahead in the DSL arena. This move comes fresh off the heels of a recent deal with Verio, in Englewood, Colo., in which Verio increased its investment in NorthPoint to $10 million as both companies are getting set to expand their co-branded DSL offerings to 21 U.S. cities. A Northpoint spokeswoman declined to comment on the implications of the two deals for the company. With the recent multitude of DSL offerings popping up like wildfire, some analysts say the race for broadband connection dollars is in full swing. "Our research shows that there is tremendous pent up demand for this," said Robert Rosenberg, president, Insight Research, in Parsippany, N.J. "In a market where the cable companies and the telephone companies both want to provision high-speed service, the race is to the fleet. The one that gets there first gets the customer." Under terms of the Frontier investment, which were made by Frontier'srecently formed Frontier Internet Ventures, NorthPoint is to become Frontier's principal provider of DSL. Frontier declined to give definitive pricing plans, but said that DSL connections bundled with Net access will start at approximately $125 per month for around 160 kilobits per second connection and about $500 per month for a T-1 connection. Frontier is excited that it will now further increase its footprint to reach out and touch the small- to medium-sized businesses via the Internet, said Jon Russo, vice president of Internet product management at Frontier. With these new offerings Frontier can look to provide its customers with faster access to data on the Net. "Behind the scenes we have eight media distribution centers that house the content that everyone's trying to get to on the Internet," said Russo.