OneMain.com Successfully Integrates California Services
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Virginia-based OneMain.com this week attained a milestone in its nationwide service integration strategy.
The company's entire California operations, representing about 30 percent of its subscriber base, were successfully transitioned to OneMain's national brand of dial-up services.
Mike Read, OneMain (ONEM) president and chief operating officer, said the successful integration of its California operations under the OneMain.com brand is a significant achievement in fulfilling the company's business strategy.
"The announcement is much more than a billing and engineering achievement," Read said. "It forms the foundation for OneMain's plan to offer our customers new products and services."
The OneMain.com network features local portals dubbed "geographic communities" in 35 states. OneMain is continuing to integrate other local operations into its national network over the next few months. Throughout the year OneMain plans to launch additional geographic communities in the smaller metropolitan markets and rural communities it serves.
As the consolidation continues, OneMain will begin to reap the benefits of enhanced operating margins, taking advantage of its economy of scale to reduce costs and business operations.
Originally pooh-poohed by industry analysts, OneMain.com came to market with a revenue model that looked good on paper, but was in essence a fundraising exercise to buy up a bevy of local ISPs. Profit sharing agreements were struck with 17 independent ISPs while preparing its ISP roll-up.
While other ISP roll-ups have failed to impress the market, including Espernet's decision to fold in February, OneMain continues to consolidate its back office functions and impress analysts.
OneMain went public last year in March and raised $215 million, nearly seven times its original goal of raising $31 million to fund its national ISP ambitions.
Just over a year after its original stock offering, OneMain appears to have affirmed the confidence of its early investors. Providing Internet access to more than 700,000 customers in 35 states and producing a comfortable balance sheet, the OneMain.com initiative is one-third of the way to becoming and ISP success story.