DSL.net, Inc. -  DSL Service  - Category Main Page 

(203) 772-1000

545 Long Wharf Drive

New Haven, Connecticut 06511

www.dsl.net 

Sales

$71 million

Business Description 

DSL.net, Inc. ("DSL.net" or the "Company") provides high-speed data
communications, Internet access, and related services to small and medium sized
businesses and branch offices of larger businesses and their remote office
users, throughout the United States, primarily utilizing digital subscriber line
("DSL," generally, or "SDSL," in reference to symmetrical DSL service) and T-1
technology ("T-1" refers to a digital transmission link, provisioned via DS-1
(i.e., North American Digital Signal Level One) or substantially equivalent
technology). In September of 2003, we expanded our service offerings to include
integrated voice and data services using voice over Internet protocol ("VoIP")
to business customers in select Mid-Atlantic and Northeast markets. Our networks
enable data transport over existing copper telephone lines at speeds of up to
1.5 megabits per second. We were organized in 1998 as a corporation under the
laws of the State of Delaware.

We sell directly to businesses, primarily through our own direct sales
force, and to third party resellers whose end users are typically business-class
customers. We deploy our own local communications equipment primarily in select
first and second tier cities. As of March 1, 2004, we operated equipment in
approximately 340 cities in the United States. In certain markets where we have
not deployed our own equipment, we utilize the local facilities of other
carriers to provide service.

In addition to a number of high-speed, high-performance DSL-based data
communications and Internet connectivity solutions specifically designed for
businesses, our product offerings include T-1 Internet connectivity and data
communications services, integrated voice and data services (provisioned over
SDSL or T-1 lines), Web hosting, domain name system management, enhanced e-mail,
on-line data backup and recovery services, firewalls, nationwide dial-up
services, private frame relay services and virtual private networks. Our
services offer customers high-speed digital connections and related services at
prices that are attractive compared to the cost and performance of alternative
data communications services.

THE DSL.NET SOLUTION

We provide small and medium sized businesses and branch offices of larger
businesses and their remote office users, with high-speed Internet access and
data communications services, and integrated voice and data services, primarily
using DSL and T-1 technology. Key elements of our solution are:

HIGH-SPEED CONNECTIONS. We offer Internet access and private network
services at speeds of up to 1.5 megabits per second, via SDSL and T-1
technology. Our network is designed to provide data transmission at the same
speed to and from the customer, known as symmetrical data transmission, and is
also capable of providing service at different speeds to and from the customers,
known as asymmetrical data transmission. We believe that symmetrical data
transmission is best suited for business applications, because business users
require fast connections both to send and receive information, and to host
advanced services and applications.

VOICE OVER INTERNET PROTOCOL. We offer a full suite of VoIP-based
telephone services in conjunction with our high speed data connections. Each
bundle includes unlimited local, unlimited regional, and unlimited domestic
long-distance calling (subject to certain limitations set forth in our service
agreement). Multiple voice and data bundles varying by the number of phone lines
and broadband speeds are available to meet the needs of a variety of business
types and sizes. Our VoIP services are offered over a "quality of service"
("QoS") controlled network to ensure that telephone calls are delivered with
carrier-grade quality.

COMPLETE BUSINESS SOLUTION. We offer our customers a single point of
contact for a complete solution that includes all of the necessary equipment and
services to establish and maintain digital data communications. Our services
include high-speed Internet access and data communications services, integrated
voice and data services, frame relay, Web hosting, domain name system
management, enhanced e-mail, on-line data backup and recovery services,
firewalls, nationwide dial-up services and virtual private networks. Our network
is designed to enable us to individually configure each customer's service
remotely.

ALWAYS-ON CONNECTIONS. With our high-speed service, customers can access
the Internet continuously without having to dial into the network for each use.
These "always-on" connections provide customers with the ability to readily
access the Internet and transfer information. We charge our customers a flat fee
per month for high-speed connectivity service rather than billing them based on
usage.

ATTRACTIVE VALUE PROPOSITION. Our DSL and T-1 services offer customers
high-speed digital connections at prices that are attractive compared to the
cost and performance of alternative data communications services, such as
multiple dial-up connections, ISDN or traditional frame relay lines. We believe
that our services also increase the productivity of network users by decreasing
the time they spend connecting to the Internet and waiting for information
downloads and transfers. The ability to bundle multiple services, such as
Internet access, data communications and voice, over the same access line allows
us to offer our services at price points which are significantly less than those
of the same communications services if purchased separately.

CUSTOMER SUPPORT. We provide customer support 24 hours a day, seven days a
week. This support is important to many of our small and medium sized business
customers because they do not typically have dedicated internal support staff.
With our remote monitoring and troubleshooting capabilities, we continuously
monitor our network. This enables us to identify and address network problems
promptly, thus enhancing network quality, service and performance.

OUR SERVICES

As part of our service offerings, we function as our customers' Internet
service provider and voice carrier, and deliver a range of Internet-based,
value-added solutions. Our services currently include all necessary equipment,
software and lines required to establish and maintain a digital Internet
connection and carrier-class voice service. Our primary services include
high-speed data communications, with or without Internet access, integrated
voice and data services, e-mail, domain name system management and Web hosting.
Other services provided by DSL.net include firewalls, on-line data backup and
recovery services, nationwide dial-up services, private frame relay and virtual
private networks that connect customers' various offices.

Customers typically pay an installation charge and a monthly fee for our
service. Revenue related to installation charges is deferred and amortized to
revenue over 18 months, which is the average customer life of the existing
customer base. The monthly fee for our data communications services includes all
phone line charges, general Internet access services, e-mail, and domain name
system management, including the issuance of Internet protocol ("IP") addresses
for customers who wish to assign fixed IP addresses to their network computers.
The monthly fee for our integrated voice and data service includes all phone
line charges, general Internet access services, local and domestic long distance
phone service (subject to subscription bundles and other restrictions set forth
in the customer's service agreement), caller ID, call waiting, call forwarding,
e-mail, and domain name system management, including the issuance of IP
addresses. Customers generally contract for our services for a minimum of 12 or
24 months, depending upon the service, and are billed for services on a monthly
basis.

CUSTOMERS

Our target customers are primarily small and medium sized businesses and
branch locations of larger enterprises and their remote office users. We sell to
these customers primarily on a direct basis. In particular, we believe the
following market segments are especially attractive prospective customers:
 

o businesses currently using other high-speed data communications
services, such as ISDN and frame relay services;
 
o professional or service-based firms that have multiple Internet service
provider dial-up accounts and phone lines;

o branch office locations that require transmission of large files
between locations;

o businesses that use data-intensive applications, such as financial
services, technology, and publishing; and

o businesses that cannot afford to pay the costs for maintaining
high-speed connections for voice and data services separately, but can
justify the cost of a high-speed connection if shared for voice and
data services.

DSL Service Providers in the Directory - Covad DSL.net