FWD: Web backbone provider Priori mulls bankruptcy
Eric Germann
ekgermann at CCTEC.COM
Thu Aug 13 04:01:34 UTC 1998
>From Ziff-Davis newswire. Another one bites the dust?
Comments?
>
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>
> By Ben Elgin,
> Sm at rt Reseller
> August 12, 1998 5:47 PM PT
> [IMAGE]
>
> Less than one year after Priori Networks Inc. opened its doors for
> business, the national Internet backbone provider is on the brink of
> bankruptcy, Sm at rt Reseller has learned.
>
> All the company's employees have been laid off and the network
> operation center is no longer functional, according to a source at
> Priori. Temporary transit arrangements have been made for Priori
> customers in the Portland, Ore., Chicago, Washington DC, and Palo
> Alto, Calif. areas, but other customers may be left to fend for
> themselves, the source added.
>
> Priori president and CEO Robert Shearing says severe financial
> shortfalls will force Priori to file for Chapter Seven bankruptcy
> within several days unless an acquisition offer is made. Under the
> rules of Chapter Seven, the company will be forced to liquidate its
> assets to pay off creditors.
>
> "It's not looking good -- we will have a final decision in the next
> couple of days," concedes Shearing.
>
> The company, which launched last October, specialized in selling
> backbone access to Internet service providers, usually at a lower cost
> than its telecommunications competitors.
>
> High hopes dashed
> With points of presence in Atlanta; Boston; Chicago; Dallas; Denver;
> Los Angeles; Palo Alto, Calif.; Portland, Ore.; Seattle and
> Washington, D.C., Priori executives once had high hopes for success in
> the ISP backbone vertical market.
>
> But, with a new breed of well-funded backbone providers entering the
> market, many industry observers believe Priori was a dollar short and
> a year too late.
>
> "They came in when the window of opportunity was closing and they made
> several key mistakes. Perhaps the biggest error was focusing too
> heavily on engineering while ignoring the sales side," says ISP
> consultant Michael Dillon, who worked for Priori Networks for six
> months.
>
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==========================================================================
Eric Germann CCTec
ekgermann at cctec.com Van Wert, OH 45891
http://www.cctec.com Ph: 419 968 2640
Fax: 419 968 2641
Network Design, Connectivity & System Integration Services
A Microsoft Solution Provider
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