NorthPoint Partners with Telocity
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NorthPoint Communications is taking strategic steps to retain its position as a leader in the DSL marketplace.
As part of its recovery plan -- bought on by a breakdown in acquisition talkes with Verizon -- the DSL service provider is forging alliances with stronger ISP partners. On Thursday, NorthPoint revealed that it has established a partnership with broadband provider Telocity.
As part of that relationship, the residential digital subscriber lines NorthPoint acquired from now-bankrupt Flashcom are being migrated to Telocity's care.
NorthPoint does not anticipate Flashcom's bankruptcy to adversely affect the purchase of the lines. The acquisition of the Flashcom lines was completed before Flashcom announced it had filed for Chapter 11 on Tuesday. Flashcom lost its lines after failing to make financial arrangements with NorthPoint.
Negotiations with other potential partners are in the works, noted Marvin Wamble, NorthPoint spokesperson. "We are conversing with other ISPs to handle business lines," he said. "We are exploring every available option to provide continued service to end users affected by other troubled Internet service providers, including transferring lines to Telocity or other viable providers."
Thursday's announcement is part of a long-term plan. Following the failed acqusition talks with Verizon in early December, NorthPoint was forced to layoff 19 percent of its workforce.
At that time, CEO Liz Fetter announced plans to mold a stronger business model for the company. She noted the company has been able to capitalize on a long-standing track record of attracting the highest quality partners.
"In fact, I have received numerous calls of support from several of our strategic partners," she said.
The NorthPoint program is similar in theory a program launched by Covad to reassure customers of struggling ISPs. The Covad Safety Net Program is described as an organized transition program offering affected customers a DSL connection and IP services to either an ISP in the program or through COVAD.net, the company's direct Internet service.