Solunet Forms CLEC Division; Leading Networking VAR To Support ISPs In Providing Competitive Local Access

Business Wire, March 12, 1999

PALM BAY, Fla.--(BUSINESS WIRE)--March 12, 1999--Solunet Inc., a pioneer in providing remote access and internetworking solutions to the Internet industry, announced today that it had formed a Competitive Local Exchange Carrier - CLEC - division. The new division, is headed by William Bell, a telephony veteran with 38 years of experience, and will focus on providing CLEC solutions to Internet Service Providers (ISP).

"The 1996 Telecommunications Act opened up the possibility of local telephone competition, and ISPs, which are already in the business of providing local access to users, are in a very advantageous position to leverage the opportunities afforded by the Act," said Mike Wortheimer, President of Solunet. "We felt that our customer base needed to be fully advised of what was available to them, and Bill, with his wealth of information and experience, is the best person to provide them with the support they need."

Bell's career goes back to 1962, starting with the Bell System, and over the past 38 years, he has been in a variety of positions.

"Solunet has built a solid reputation for providing end to end solutions for ISPs, and is in the best position to understand and provide CLEC solutions for ISP needs," said Bell. "I cannot understate the magnitude of this opportunity for ISPs, because an ISP can now, as a CLEC, offer total telecommunications solutions to their customers. At the same time, because of the economies of scale, ISPs can dramatically reduce their own operating expense structure. We have an economic model, showing that an ISP with 20 T-1s can completely recover all startup expenses in less than 3 years!"

Local Exchange Carriers, LECs, like BellSouth, Ameritech, SBT and Bell Atlantic, must open up local markets to competition before they are permitted to enter the lucrative long distance market. ISPs, because they already have significant customer bases concentrated in local areas, are poised to become CLECs, by offering existing customers a lower cost, and more effective means for integrated network access than is currently available.

Solunet, which is known for its highly acclaimed Best of Class ISP product offerings, is taking the same proven approach with its CLEC offerings. Solunet provides the finest in CLEC offerings from companies like Lucent, DTI and Copper Mountain. Solunet provides a total solution - the switch, the cross connect, the M1-3s, the M1-0s, and SLCs, and will fully integrate the CLEC operation with the ISP operation, complete with Solunet's famed technical support..

ABOUT Solunet

Solunet is a Value Added Reseller and system integrator, located in Palm Bay, Florida, specializing in providing internetworking, remote access, Wide Area Networking, telecommuting and CLEC solutions. With over 80 employees, and nearly $100 million in annual revenues (Number 51 on Inc. 500 for 1998), Solunet is a leading provider of specialized networking and telecommunications solutions. Solunet offers technical support, a DOA Killer Program and Best of Class product offerings, and unparalleled expertise since 1992, to a variety of customers - the US government, large and small businesses and hundreds of Internet Service Providers. Solunet provides the finest products from manufacturers around the world; ADC Kentrox, Adtran, Ascend, Nortel/Bay Networks, Breezecom, CacheFlow, Carrier Access Corporation, Cisco Systems, Cobalt, Com21, Compatible Systems, Compaq/Microcom, Digital Link, Fore Systems, FTP Software, J&L Chatcom, Lucent/Livingston, Packeteer, Pairgain, Redback, Security Dynamics, Shiva, 3Com/US Robotics, and WatchGuard.