Tiny ISPs dropping dead

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Forbes.com/AP: Consumers Union, the publisher of Consumer Reports magazine, said three-fourths of all independent ISPs have gone out of business in the past five years.

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Charlie Sierra

This may be so, however several sharp small ISP’s are hiring laid off RBOC employees and buying Lucent Class 5 switches for literally next to nothing and then entering the SMB CLEC business, offering Data and Voice at rockbottom prices.

The plan is to run really lean, buy greatly discounted but functional equipment, and make a profit on the MRC.

The gravy is that you slowly move up the value layer cake and earn ever fatter margins, provided services with open source software.

Only one problem, you can’t grow this business fast or else you destroy it.

So this is a management business, not a technology or finance business.

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