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News Releases
New Edge Networks expects Broadband Network Sales surge in 2005
VANCOUVER, Wa. – (January 5, 2005) – New Edge Networks today said 2005 could be a record year for sales of multi-location high-speed networks as businesses, particularly retail merchants, are increasingly turning to managed broadband networks to boost sales and cut expenses.
A surge of new orders and requests for proposals late in 2004 suggests that businesses are anxious to migrate to broadband networking. For New Edge Networks, managed network sales in the fourth quarter were up almost 50 percent over the same period a year ago. New Edge Networks began or completed work on more than 135 multi-location broadband networks during 2004.
Most of the new sales are to small and midsize retail businesses that have been using slow 56K dial up connections. Large companies are beginning to abandon traditional wide area networks in favor of more cost effective IP-based VPNs, short for virtual private networks. Businesses are migrating to broadband networks to speed up credit card transactions, real time inventory management, and sales polling.
“Businesses are rapidly abandoning their second and third telephone access lines and consolidating applications over one broadband connection that gives them three times the speed for about the same cost as dial up per site,” said Dan Moffat, president and CEO of New Edge Networks. “The additional bandwidth allows them to overlay various new applications, such as real-time training, video monitoring, VoIP, and wireless hotspots.”
Research firm In-Stat estimates that the retail market segment alone will spend roughly $30 billion on telecom services and equipment in 2005, up 11 percent from last year. More specifically, the retail vertical is expected to spend 28 percent of this total on wireline data services, which includes broadband, ATM, Frame Relay, IP-VPN, and other high-speed data services.
“As microprocessing power is embedded deeper into every business, companies need broadband networks to move data quickly and use information to gain competitive advantages,” Moffat said. “In the digital business environment, a business without broadband access is one that is slowly dying.
“Most small and midsize businesses do not have dedicated IT staffs to manage their networks,” Moffat said. “They prefer to work with one company that can integrate and manage any blend of broadband options available at any of their business locations so they can focus on building and growing their business.”
The size of a multi-location high-speed network from New Edge Networks averages 50 sites. Networks underway range from as many as 2,100 sites throughout the country to as few as 4 sites in a single city.
These numbers exclude network nodes that New Edge Networks installs on behalf of major long-distance carriers, regional bell companies, and other communications providers that use the company for connections that are “off-net” or outside of their core networks. New Edge Networks provides 100 percent reach to any business address in the United States.
Last November New Edge Networks formed the Retail Broadband Alliance, a forum that makes it easy for merchants to migrate to broadband. Also last year, New Edge Networks formed a multi-site project management team to streamline and accelerate network installations for its business and carrier customers.
The systems and procedures that New Edge Networks has in place allowed the company to install and turn up about 270 sites on one network for a national restaurant chain within 75 days during the fourth quarter of 2004. In contrast, another carrier completed installation on about 30 sites over a six-month period for the same customer.
About New Edge Networks
New Edge Networks is a single-source national provider of managed network services for multi-location wide area networks (WANs). Through its own network facilities, New Edge Networks integrates a wide variety of last-mile broadband access technologies for building blended networks that reach 100 percent of all U. S. business locations. Customers include business enterprises, telecom carriers, and other communications providers. New Edge Networks is listed No. 28 on the 2004 Inc. 500 list and was chosen as Frost and Sullivan’s 2004 telecom company of the year. The company’s Web site is www.newedgenetworks.com. Telephone: 1-360-693-9009.
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.