IP Communications Expands Broadband Services to Nine New States

Strategic Insights -

IP Communications, a leading Broadband Service Provider (BSP) and the largest in Texas, announced the expansion of its high-speed Internet access and data communications services to nine additional states. The company aims to convert one-third of America's phone lines to broadband by mid-2001, making it one of the largest broadband service providers in the nation.

Key Takeaways:

  • IP Communications is extending its broadband services to nine new states, including California, Illinois, Michigan, Ohio, Indiana, Wisconsin, Missouri, Oklahoma, and Kansas, in addition to its existing presence in Texas.
  • The company plans to convert about 55 million phone lines, or one-third of all phone lines in America, to broadband by mid-2001, making it one of the largest broadband service providers in the nation.
  • IP Communications has completed the construction of its DSL high-speed Internet access network in Texas, with equipment installed in 235 SBC Communications central offices, more than double the number of any competitor.
  • The company's network covers over 5 million households in 125 major Texas communities, and it has a top-notch team of over 200 employees, up from four employees in late 1999.
  • IP Communications follows a "saturation" marketing strategy, allowing it to access over 90% of the population of every state it serves, providing superior marketing, cost, and service efficiencies.
  • The company plans to install DSL equipment in 1,280 SBC central offices and have a fully redundant backbone network of ATM switching equipment, supplied by Lucent Technologies.
  • IP Communications is partnering with Internet Service Providers to offer broadband Internet access via DSL service in 10 states, and it has raised funding from VantagePoint Venture Partners, GE Equity Partners, GE Capital, and CIBC Capital Partners.

Statistics:

  • 55 million: the number of phone lines, or one-third of all phone lines in America, that IP Communications aims to convert to broadband by mid-2001.
  • 235: the number of SBC Communications central offices where IP Communications has installed equipment for its DSL high-speed Internet access network.
  • 125: the number of major Texas communities covered by IP Communications' network.
  • 5 million: the number of households in Texas covered by IP Communications' network.
  • 200: the number of employees IP Communications has, up from four employees in late 1999.
  • 10 states: the number of states where IP Communications will offer broadband Internet access via DSL service.
  • 1,280: the number of SBC central offices where IP Communications will install DSL equipment.
  • 6 Mbps: the connection speed offered by IP Communications' DSL service.

Sources:

  • Business Editors & Technology Writers, "Dallas--(BUSINESS WIRE)--May 23, 2000"
  • IP Communications, "About IP Communications"
  • SBC Communications, "NYSE:SBC"
  • Lucent Technologies, "NYSE:LU"
  • VantagePoint Venture Partners
  • GE Equity Partners
  • GE Capital
  • CIBC Capital Partners