PALO ALTO - You might think the last thing Frank Robles would want to do is launch another metropolitan Ethernet provider. After all, he saw how brutal that market could be when Yipes, the metropolitan Ethernet pioneer he previously co-founded, was forced to file for Chapter 11 bankruptcy protection earlier this year despite strong sales and satisfied customers.
But Robles, who was forced out in a management restructuring, is boldly returning to the fray as CEO of newcomer Neopolitan Networks, a carrier built on the premise that there is still money to be made in selling high-bandwidth pipes for LAN connectivity and Internet access to businesses.
Neopolitan's business model is similar to Yipes'. Like Yipes, which recently emerged from Chapter 11 as Yipes Enterprise Services, Neopolitan will try to undercut prices for T-1 and T-3 services from incumbents. The carrier is aiming for up to 25% discounts, though pricing will vary by market.
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Neopolitan also will do things differently than Yipes, Robles says. For example, the new carrier will offer some ISP-type services, such as e-mail, e-mail backup and Web hosting. Also, Neopolitan plans to curb growth compared with Yipes, offering services initially in the Bay Area.
Ultimately Neapolitan will be a national company, he says. "We plan on adding more markets later this year."
Nick Maynard, an analyst with The Yankee Group, says "there's still a market out there if you can build out your network cheaply enough. Yipes managed to get back on its feet in three months, so there are obviously investors that believe the same thing."
Future growth
A Yankee Group study from last year predicted that the market will grow from about $265 million in sales in 2001 to just more than $4 billion in 2006. Those totals include transparent LAN, Internet access and value-added services.
For access services, Neopolitan offers bandwidth ranging from 1M to 1G bit/sec, in 1M bit/sec increments. Bandwidth changes of more than 100M bit/sec require new CPE interfaces.
Neopolitan uses Extreme Networks switches to terminate fiber runs, often in a building basement. The company offers Internet access and office-to-office connectivity. Once it expands beyond the Bay Area, Neopolitan plans to offer high-speed links between offices in different metropolitan areas.
Neopolitan also will offer companies redundant connections to complement their regional Bell operating companies' links, Robles says.
Neopolitan's fiber is separate from the RBOC networks.
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Contact Senior Writer Michael Martin
Other recent articles by Martin
Yipes reorganizes and comes back from bankruptcy
Network World Fusion, 07/10/02.
The business case: Metropolitan Ethernet services
Network World, 06/03/02.
