- NO PICNIC:
These articles are for information purposes only and should not be
reproduced or forwarded in any form. If you would like contact
information for follow up, please contact us at firstname.lastname@example.org.
|Businesses that use digital subscriber line (DSL) for high-speed Internet access are in for a bumpy ride. Thousands of small and midsize businesses lost their DSL service with no notice when NorthPoint Communications Group shut down services last month after filing for bankruptcy. Troubles plague other once-promising DSL upstarts such as Rhythms NetConnections and Covad Communications.
The fallout doesn't surprise Mike Lauricella, an analyst at Boston-based The Yankee Group. "You can't just sell DSL nationwide in a couple of years," he explains.
VARs such as Oli Thordarson, president of Alvaka Networks in Huntington Beach, Calif., have been looking at a range of strategies to help customers get reconnected, including using a wireless broadband network, installing T-1 lines, or getting DSL service from a traditional telephone company rather than a start-up whose future is uncertain.
Telephone companies stand to reap benefits in the fallout, Lauricella says. "You'll see them price DSL less attractively to push people into getting a [more expensive] T-1," he predicts.
DSL By the Numbers The seven largest providers of DSL service in the United States at the end of 2000:
*Filed for bankruptcy in January 2001Source: The Yankee Group
Return to top of page
Return to "Members Only" home page.