Its largest subsidiary, Atlanta Provision Company, Inc., was sold in February 1997. The Company subsequently moved its headquarters to Calabasas, California from Milwaukee, Wisconsin. The remaining two discontinued operations are to be sold before March 31, 1998. The change in both scope and size of annual revenues (from over $200,000,000 to approximately $10,000,000) going forward as well as the change in management and locations (now the former Sattel management in California) led to the cessation of the client - auditor relationship between Price Waterhouse LLP and the Company.
dslnet.com Dakota Services, Ltd. CORPORATE HEADQUARTERS 20825 Swenson Dr. Ste. 150 Waukesha, WI 53186 (888)-221-4375
Directions to Corporate Headquarters MADISON OFFICE 2909 Landmark Place Ste. 110 Madison, WI 53713 (608)-274-9932 A B O U T D A K O T A : E X E C U T I V E P R O F I L E S Meet Dakota's executive staff. Theodore Lasser, Chief Executive Officer Mr. Lasser has spent 25 years in telecommunications and electronic engineering. Mr. Lasser joined Dakota in 1997, and held the titles of VP Network Services, and Chief Operating Officer until becoming Chief Executive Officer in late 1998. From 1990 to 1997, Mr. Lasser was Founder and President of Telcore Holdings (current name) that provided telecommunications, network and WAN design services to businesses. From 1987 to 1990, he was a Manager at Wisconsin Bell (Ameritech) where he managed the key financial, network and regulatory functions of a CO (Central Office). From 1982 to 1987, Mr. Lasser was Executive Manager of Schneider Communications that was subsequently sold to Frontier Communications. In that position, his functions included developing and marketing product and service strategies for end-user customers. He is a decorated Vietnam Veteran, and a 1991 graduate of Cardinal Stritch University with dual degrees in Business Management and Marketing.
Steven Grotewold, Executive VP of Strategic Development Mr. Grotewold joined Dakota in 1999, and is responsible for raising capital for the company presently, and is expected to work on non-financial strategic and development activities in the future. From 1995 to 1998 he was a senior banker in the Telecommunications Group at Eversen Securities, and from 1991 to 1995 he was a Senior Vice President in the Institutional Equity Sales group at Hamilton Investments, a small investment bank. Mr. Grotewold was a Partner at Primus Development Corporation, a venture capital firm, from 1988 to 1991, and began his career at Drexel Burnham Lambert, where he was an Assistant Vice President in Corporate/Municipal Finance from 1982 to 1987. He has a BA in Finance and Accounting from the University of Colorado in 1982, and received an MBA from the University of Denver in 1984.
Douglas Zolnick, Chief Technology Officer Mr. Zolnick has 11 years of telecommunications experience with DSC Communications, Electronic Data Systems, NTIA Institute of Telecommunications Sciences, Xylan, and BDM Corporation. Mr Zolnick has experience with ATM, LAN/V LAN switching/routing, EDS*LINK, EDS Video Conferencing, and GM Infranet IP network design and implementation. He has worked with various telecom industry segments including Competitive Access, CLEC, Cable, ISP, End-User, consulting and implementation on multi-service access, transmission, core switching, Transparent LAN Service (TLS), Frame Relay, ISDN, BISDN, SONET, SDH, Cell Relay, circuit emulation, Internet access and distribution. Mr. Zolnick has a Bachelors of Science Degree in Business with a minor in Management in Electrical Engineering fro the University of Colorado - Boulder, 1986 and has EIT certification.
Mark Wliten, VP and General Manager - South Region Mr. Wilten has 18 years experience in the telecommunications industry, eight of those as a Manager with IBM/Rolm where he was in the top 5% in sales production in the world. As Regional Sales Manager with Centigram Communications, he was responsible for training all of Ameritech's sales people. In addition, he quadrupled sales of voice mail systems within his first year servicing the Ameritech account. He was voted as most responsible for increasing sales of all products at Ameritech. Mr. Wilten has been involved in the Interactive Voice Response and Video Conferencing Industry and in 1992 he founded Voice Services which now provides voice mail service to over 3,000 customers nationwide.
Jim Webb, VP and General Manager - Great Plains Region Mr. Webb has gained experience in many facets of the telecommunications industry over the past 30 years. His comprehensive industry knowledge and experience, including a telecommunications regulatory position in Washington, D.C., have prepared Mr. Webb for the Dakota network expansion. Prior to Dakota, Mr. Webb was in Engineering Construction Management with Sprint, Ltd. His educational background includes a Bachelor of Science Degree from Drake University and a Masters Degree in Personnel Management from Central Michigan University. P R I N T A R T I C L E S : N O V E M B E R , 1 9 9 8 Current press coverage of Dakota and its product offerings. By Jason Meyers
This is used furniture in here," says Ted Lasser, chief operating officer of Dakota Services Ltd. Referring to his unassuming office in unassuming Waukesha. An unassuming suburb of unassuming Milwaukee.
I'm confused. Fishing for a compliment? No. Trying to make a point: "Our philosophy was that if we didn't need it, we put it into a CO."
Still confused. Used office furniture in a CO? No. Again, a point. Dakota is frugal. Dakota keeps overhead low. Dakota's priorities lie in the bare necessities of competition.
Lucidity arrives with coffee. Things start making more sense.
Dakota is small, private, quiet. But Dakota has big dreams.
The data CLEC wants to run 1 million digital subscriber line ports off a national asynchronous transfer mode backbone. So far, on less than $5 million cash. So it's being very nice to everyone.
Dakota is dripping with cooperation. Company leaders display it like softball trophies. Refuse to get lured into battle with the Bells.
Lasser: "We're proud to say we don't have any lawsuits against our RBOCs. We've never been ejected out of a CO." Wouldn't his mother be proud? "We're treating them professionally, and they're treating us that way back."
Dakota, home of good, solid Midwestern values. An ethical, honest business. Led by people who were soured by the alternative in previous lives. Decided to love thy neighbor and thy customers in this one.
"This place doesn't center around me, it centers around our customers," Lasser says. "It's a pleasure doing business with us."
Sprawling dreams, but for now the Midwest is the best. Starting at the home core, spreading over eight states. Close ties with Ameritech. Lasser worked there once. So did VP of marketing and business development Greg Gapinski.
"They call us their CLEC," Lasser says, beaming. "We're getting what we need to get on interconnection agreements."
Coverage aims have no boundaries. Beyond these eight states, beyond Ameritech, beyond the Bells. Plans go far beyond the Midwest. So does the cooperative attitude.
Dakota, politely pushing its way into as many COs as possible. Also nice to PUCs, even the FCC. CLEC status in every state, 55 interconnection agreements. Being really, really nice about all of it.
"We're not going to get anywhere by pounding our fists," says Gapinski, sounding like somebody's mother. "Make it adversarial and you're going to play the waiting game. We're not a company that wants to be in your face."
Dakota, amicable standout in a cutthroat world. A smiling face in a niche full of hard-asses. Must be something lurking underneath.
A clue--but just a necessary competitive agenda--from Lasser: "We're going to dominate the five-state Midwestern region."
Dakota is paving the last mile with DSL (just like the acronym for its name). Building broadband rings around Ascend ATM switches, putting DSL access multiplexers in COs, running DSL pipes to homes and businesses. Calling it R@pidFire.
In some places, building virtual private networks, transparent LANs. Sometimes in cooperation (there's that word again) with Internet service providers. Teaming with them to give a wider data hose to their customers. Regional ISPs connect to their switches, extend DSL to the masses.
ExecPC Internet is one. The Wisconsin ISP connects remote offices and telecommuters using Dakota lines. First one in the Midwest, announced this summer.
Ascend is a strong partner. Helped Dakota get to where they are on a shoestring. "They've taken us under their wings," Lasser says. "They believed in us early on."
Dakota's top tech guy tinkered with Ascend's switches until they fit his needs. Doug Zolnick, VP of research and development, late of DSC, EDS, NTIA and Xylan. Built the network, runs it from a little room in the Waukesha office. Also experiments. "We're modeling our networks right here in this room," says Zolnick, surrounded by whiteboards.
Zolnick handles the technical details of interconnection. Echoes the cooperative theme. "Ameritech really likes us." He offers some insight as to why: "I think they're looking to buy a CLEC."
Dakota incorporated in March '97, bagged its first customer in August the same year. Little publicity. Dakota's quiet revolution will not be televised. Afraid of demand, afraid to mar its nice-guy record.
"We have customers mad at us now--they can't get on because of the backlog," Gapinski says. But they're so damn nice that the sales department hasn't lost a single account.
Dakota can't advertise. Not enough port capacity and not sure it needs to yet anyway. Feels like it's already winning.
"A guy doesn't have to brag about how many home runs he has," Gapinski says. "With success comes recognition." Speak it.
How do they make it all work? The low cash outlay, the subtle but massive expansion, the quiet approach.
"We've limited our distractions," Gapinski says. "One thing." Holds up one finger. To signify how focused Dakota is. No distractions.
That's where the friendly exterior comes in handy. Regulatory issues have been killed with kindness.
"That stuff eats up your day like you wouldn't believe," Gapinski says. "When you keep your mouth shut it's amazing what you can do." I shut my mouth.
The niceness also drips into the organization. Lasser: "Leadership by example. This is my example. Core heart and core soul."
A lack of hierarchy means he helps out. "I've got a pair of blue jeans in my car, and if I have to I'll put them on and help these guys move crates around," Lasser says. Note to self: Check his car for jeans on the way out.
Trick now is maintaining early success. Growing, spreading the network, getting the customers. But keeping philosophies and attitudes in check. Past experiences help. Gapinski most recently managed broadband services for IBM Global Network.
"We constantly remind ourselves what we're about and how we got here," Gapinski says. "Knowing what you could be and the pitfalls of that helps you avoid building huge empires."
Dakota is quiet. Just got a new CEO: Eugene DePalma, eight-year veteran of NJK Holding Co., before that 15 years with Van Dusen Air. Never heard of either of them, right? An industry outsider, so they're keeping him out of the public eye until he's telecom-savvy.
They just launched Chicago, but keeping that quiet too.
Soon, they promise, they will explode. Maybe then we'll figure out what they're hiding. Whether they're really as nice as they seem. For now, anyway, the positive mood is catching.
Jason Meyers is not a nice guy. Despite that, he's Telephony's Technology Editor.
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