Another communication carrier providing services to businesses in Independence seems to be on the verge of
financial extinction as yet more ripples of the "DOTCOM bomb" spread across the DSL and telecommunications market.
Teligent,Inc. (TGNT) stock stopped trading at $0.52 cents a share, having dropped
from a 52 week high of $40.12 on FY2000 losses of $808 million.
(see articles:
InternetNews: Teligent Files for Chapter 11 Protection,
CBS MarketWatch: Teligent Files for Chapter 11 Protection
)
Teligent is not alone in the dismal DSL arena. NorthPoint Communications Inc. simply stopped providing services along Rockside one fine morning,
catapulting several local businesses into a scramble to find alternate access for Internet and other services.
Covad (COVD $1.09/share from 52 week high $31.87) appears seriously ill and was notified that it would be delisted by the NASDAQ for failing to provide 4th quarter financials.
Convergent is bankrupt and liquidating, Rhythms (RTHM $0.31 from $37.50 high) lost $2.61 per share in Q1, has massive layoffs and faces similiar NASDAQ delisting.
Area executives expressed concern and uncertainty over services their organizations
have come to depend on. "We're not even sure if our new (replacement) providers will be around long enough to finish their installation."
The city has had a regular stream of permit requests by communications carriers to place antennae and microwave towers on the rooftops of businesses
along Pleasant Valley and Rockside roads. Based on recent events (and Teligent's plans to look at curtailing services in some markets), subscribers who depend exclusively
on one carrier or another should be particularly wary. Companies are advised to consider implementing a backup plan that
provides some measure of redundancy.
"Installing a backup ISDN data line, or simply having a spare phone line and dial-up access
account can keep many of the most critical business communications going if your primary carrier fails...but its got to be in place before the crises "
Al Kruzer, Rampant, Inc. Independence, Ohio