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News Releases
New Edge Networks Warns Legislation Could ‘Widen the Digital Divide’
WASHINGTON – (May 24, 2001) – New Edge Networks, the largest national broadband access provider focused in small and midsize cities, today warned that developments in Washington could “widen the digital divide” and threaten the economic viability of smaller cities.
Testifying at a joint subcommittee hearing held by Rep. Mike Pence, R-Ind., and Rep. John Thune, R-SD, Susan McAdams, vice president of external and legal affairs for New Edge Networks, said the House Small Business Committee has a critical stake in the debate and urged members to closely continue monitoring developments. She applauded the subcommittee hearings on “Eliminating the Digital Divide – Who Will Wire Rural America.”
“We are deeply concerned by some legislative proposals currently before this Congress,” McAdams testified at the hearing. “These proposals would actually widen the digital divide by abandoning competition as the driving force for innovation and broadband deployment. We must not turn back the clock to a time when monopoly providers unilaterally determined which services would be available to customers in small markets.
“Today’s global economy is a virtual meeting place in which small town businesses can be full participants through electronic transactions. Rural and suburban residents can work from home, linked to commercial centers over high-speed lines to the Internet. Rural health clinics and schools can access specialized resources and information formerly obtainable only in big cities,” McAdams said.
The 1996 Telecommunications Act has led an information-powered economic revival including small cities and rural areas. Companies like New Edge Networks exploded on the scene after passage of the 1996 Act to narrow the digital divide. She relayed a success story how an engineering firm in Walla Walla, Wash., was able to leverage broadband DSL to remain competitive and save money.
Since 1997 competitive providers have invested more than $56 billion in network infrastructure and collocated DSL equipment in 8,200 central offices. Competitive local providers serve more than 16 million customer lines and more than 400,000 DSL connections.
“Unfortunately, the revival tent in which this miracle is take place is listing in the wind and may be in danger of toppling over,” McAdams said. “Some proposals before this Congress, if enacted, threaten continued competitive deployment of advanced telecommunications services, especially in smaller markets.”
At the hearing, McAdams urged lawmakers to stay the course that Congress charted in 1996 with the Telecommunications Act. She also suggested targeted subsidies to providers, give the FCC stronger enforcement tools and consider requiring full structural separation of large local telephone companies.
New Edge Networks currently provides broadband services in more than 350 cities in 29 states. In some of these markets, New Edge Networks is only broadband services provider because the local telephone company has not yet deployed its service and cable modem service is not yet available.
Originally, New Edge Networks targeted service in more than 1,200 locations in all 50 states and last Fall scaled back it plans in the midst of a market downturn. Last month, New Edge Networks received $77.5 million to fully fund its current business plan to profitability before the end of next year.
About New Edge Networks
New Edge Networks was founded in June 1999 to provide broadband services nationally in small, midsize cities where populations generally range from 5,000 to 250,000. The company owns and operates a national data communications network with 18 regional aggregation points and almost 600 nodes making it one of the largest ATM networks in the United States. Through its Alcatel network, New Edge Networks delivers a full range of consumer and business-class high-speed Internet access as well as advanced broadband services such as wide area networks, virtual private networks and frame relay. New Edge Networks plans to overlay voice, video and other value-added broadband services and to remain technology agnostic. Top-tier private venture firms, global financial institutions and worldwide technology firms provide financial backing to New Edge Networks. The company's Web site is www.newedgenetworks.com.
Contact:
Sal Cinquegrani
(360) 906-9723
ATTN: New Edge Networks news releases contain information that is accurate as of the date they are issued. Information contained in past news releases may become out of date and the company does not assume responsibility for updating information contained in past news releases.