Competitors snapping up Telergy clients

CNY Business Journal (1996+), Dec 14, 2001 by Dickinson, Casey J

SYRACUSE - Customers and competitors didn't wait for Telergy Inc.'s official liquidation filing. Before the once-vaunted communications company filed for Chapter 7 federal bankruptcy proceedings last week, the carrier's lines began shifting. The company's eventual shutdown puts more than 2,000 telephone customers into play.

"There could be a lot of businesses in need of very quick service," says Ythan Lax, director of corporate communications for Choice One Communications.

Though the bankruptcy court may set certain deadlines for the disposition of Telergy's customers, says Lax, the reality of switching telephone companies may not always follow a court schedule. He advises placing an order early to get ahead of the rush of switch orders sure to come from Telergy's elimination.

Choice One began courting Telergy customers after the company's financial crisis hit the media in late summer. As the end of Telergy seemed imminent, Rochesterbased Choice One took out advertising aimed at getting former Telergy customers to change their provider.

Gallinger/GMAC Real Estate decided to switch many of its 130 lines from Telergy to Choice One soon after the initial Chapter 11 filing, says Paul Franklin, vice president of finance at Gallinger/GMAC. The company switched to Telergy foru years ago to take advantage of the lower prices the carrier offered, he adds.

Now, says Franklin, "we'll be saving more With Choice One."

Though the names have changed, the faces have not. The Choice One staff that signed up Gallinger/GMAC consisted of former Telergy employees.

"I'm dealing with the same people at Choice One as I did at Telergy," he adds.

Other Telergy competitors aren't rushing after the customer pool. Executives at Utica-based Northland Communications say the end of Telergy means no change to its business strategies.

"We run a profitable business, that's our strategy," says Thomas Ellis, vice president at Northland.

Serving the Syracuse and Utica markets is the company's daily goal, mays James McCarthy, vice president at Northland. The availability of new business beyond its target market, he adds, won't change the company's profit-oriented plans and its focus on long-term success.

"There are a lot of customers out there," says McCarthy. "We're not looking to be the biggest."