A New England-based independent digital subscriber line (DSL) provider's struggle to redeem its business just got a boost with $15 million in investments Wednesday.

DSL.net officials, who have spent most of 2001 either cutting jobs or reducing their presence in central offices throughout the nation, take that as a good sign, though they are definitely not out of hot water yet.

David Struwas, DSL.net chairman and chief executive officer, hopes the investment will help speed the company's way to cash flow positive sometime next year.

"Being able to secure this level of new investment from leading firms such as Columbia Capital, Charles River Ventures, Hunt Private Equity Group, and National Investors Group in an extremely tight capital market, is a strong expression of confidence in our unique business model," Struwas said. "With this new infusion of capital, we are positioned to accelerate our smart growth strategy both through potential acquisitions and through the ramp-up of our internal sales efforts."

For most of 2001, the struggling business-class DSL Internet service provider (ISP) wasn't much in the minds of investors or mainstream corporate America; in fact, many expected the company to fold quietly like so many other independent DSL providers have done this year.

But like Covad Communications, which just emerged from bankruptcy court last week, the New Haven, Conn. ISP has managed to wheel-and-deal itself some breathing room. Wednesday's $15 million cash infusion comes fresh on the heels of a $15 million investment from VantagePoint Venture Partners Dec. 13.

DSL.net provides symmetric DSL (SDSL), which is capable of consistent up and download speeds of 1.5Mbps for applications such as videoconferencing, to customers around the country.

Unlike residential asymmetric DSL (ADSL) service, which brings home user's inconsistent Internet speeds, SDSL brings a potentially large cash return on investment to DSL providers. Telephone companies, who own the DSL infrastructure around the U.S., set rates for DSL provisioning the same, regardless of DSL type.

Margins for ADSL are at an incredibly low level, forcing companies to hope to make a profit by signing on as many consumers as possible. SDSL is pricier however, companies are willing to pay the expense for consistent service.

DSL.net, flush with venture funding a couple years ago, took a residential ADSL approach to their SDSL service, quickly deploying nationwide and padding their extremely high cash burn with additional funding. Once funding ceased, though, officials were left holding the bag of a business that couldn't support itself.

Officials quickly abandoned their deployment and looked to shore up their losses, though at a price from which they still might not eventually free themselves.

The ISPs earnings before interest, taxes, depreciation and amortization last quarter were a negative $15 million. While much better than the second quarter of 2001 (negative $48 million), the company has a long way to go before it sees positive cash flow.

Investors remain confident the company can pull it off and have backed it up with cash.

Columbia Capital, and the members of our syndicate, were impressed with DSL.net's unique business model, experienced management team and its ability to execute quarter after quarter," said Harry Hopper, Columbia Capital managing partner. "We are confident that the new dollars will be used effectively to capitalize on the significant growth opportunities that exist for well funded companies in today's business broadband arena."