Did AT&T kill the local Internet Provider?; "National Providers Can't Offer Critical Customer Service Like the Little Guys," Says One Small Company

Business Wire, Feb 29, 1996

BOULDER, Colo.--(BUSINESS WIRE)--Feb. 29, 1996--AT&T's recent offer of five free hours of Internet access to customers of its long-distance phone service quickly has been hailed as a death knell for other Internet service providers (ISPs). But while AT&T's offer has already dented the stocks of major online services and national ISPs, many local and regional ISPs say the move may actually help grow their business in the long run.

"A portion of our business competes with companies like AT&T," said Steve Weaver, vice president of marketing and sales for Boulder-based ISP Online Network Enterprises (O.N.E.). "But, dial-up Internet access to end users is just part of what we do. Providing services like dedicated access and Web site development for businesses is more lucrative, and will allow us to stay competitive as dial-up rates are driven down."

The ability of smaller ISPs to provide more personalized service is another competitive advantage. According to a recent article in The Wall Street Journal, AT&T has already encountered customer service difficulties. Callers inquiring about the new service are being told they will have to wait four to six weeks for the necessary software, the article said.

Weaver said that if AT&T's offer generates new Internet users, many of them will migrate to local service providers once they realize that a big national company can't deliver the high level of customer service needed with Internet access. "There's simply more to it than a phone call," Weaver said.

Based in Boulder, O.N.E. provides businesses with Internet solutions through high-speed, dedicated access and World Wide Web development. O.N.E. offers around-the-clock Internet service, hosting World Wide Web sites on dual-processor Sun Servers. Its high level of network redundancy ensures that its sites never go offline. Online Network Enterprises, Inc. is majority-owned by the Becker Group of Companies, a telecommunications, cable and real estate conglomerate in the United States and Canada. For more information, visit the O.N.E. Web site (http://www.netone.com).

CONTACT: O.N.E.

Jennifer W. Fawcett, 303/413-8815

ifer@netONE.com

or

Metzger Associates

John Metzger, 303/786-7000

jpm@metzger.com