EarthLink Finds Dial Up Alternate; Lands Lindows Deal

Jittery over WorldCom troubles, EarthLink pens a deal with StarNet to provide dial up access nationwide. Meanwhile, Lindows is trying to make Internet service on Linux-based computers a little smoother with EarthLink.

by Jim Wagner & Clint Boulton of internetnews.com [September 17, 2002]

EarthLink, Inc., perhaps a bit worried about recent troubles at telecom giant WorldCom, signed a deal with Chicago-based wholesale dial-up Internet provider StarNet, officials announced Monday.

StarNet's MegaPOP service, one of a few remaining pure-play wholesale dial-up providers in the nation today, is opening up its 2,900 POPs throughout the U.S. and Canada to EarthLink's 4.9 million customers.

Officials at StarNet would not comment on the contract terms, though the deal is a significant win for a company already providing local point-of-presence (POP) access to two major national ISPs—MSN and United Online.

Pure play POP providers are a dying breed in the U.S.; StarNet's archrivals are industry giants like Level 3, Global Crossing, UUNet (a WorldCom subsidiary) and AT&T, who offer ancillary services in addition to POP coverage.

The services offered by these companies have driven most of the POP-only wholesalers out of business, including ZipLink (notable for providing access to now-defunct free ISP Spinway) and NaviPath, which shut down its network abruptly last year.

WorldCom, which took over ZipLink's customer base in 2000, now finds itself the unlucky recipient of customer fears that its own UUNet-fueled network might go dark. Since the company's troubles began earlier this year, customers have been scrambling to find a new carrier.

While the customer influx hasn't been as large as ZipLink or NaviPath's demise, Michael Alonzo, StarNet's manager of dial up sales, said business has been good since the WorldCom worries began several months ago.

"UUNet carries a ton of traffic and there are a lot of people that have called and inquired and got a contingency plan in place and there have been quite a few that have actually switched over," he said. "I don't know if they've shut their deal off with UUNet, but they have migrated traffic from the UUNet network over to ours."

There are several deals more deals in the pipeline, Alonzo continued, "and probably some that are close but (we) haven't even been able to breathe a word about yet. With the competition dropping like flies, there should be a lot of (deals) coming up."

StarNet, like WorldCom, provides 56K, V.90 and ISDN service in the U.S. and Canada. According to Steve Dean, EarthLink vice president of operations business management, the wholesale provider's extensive reach was one of the main reasons for the contract announced Monday.

"This agreement will allow EarthLink customers to continue to enjoy reliable and consistent dial-up connections that they have come to expect," he said.

Related news
Lindows.com—the anti-Microsoft, alternative operating system startup founded by former MP3.com head Michael Robertson—has teamed with Internet service provider EarthLink, Inc. to offer customers dial-up Internet access for Linux-powered computers.

Lindows.com insisted the importance of this news is that while such services have long been offered on Microsoft Windows computers, it has been a missing convenience for Linux.

The San Diego firm said the Earthlink icon will now appear on all LindowsOS installations by default, which means all users have to do is click on the Earthlink icon to be connected to the Net. Lindows.com said it made this play to replace stodgy dial-up access on traditional Linux-based systems with a more convenient turnkey method for the desktop operating system.

"Whether it is a $199 computer purchased from Walmart.com or from our network of builders, an Earthlink icon will connect users to a nationwide network of thousands of local calling numbers," said Michael Robertson, chief executive officer of Lindows.com. "In a largely stagnant computing environment, Linux is experiencing rapid growth on the desktop and those new users now have easy access to quality Internet service."

The firm further specified that while its LindowsOS has always come with built-in plug-and-play connectivity for broadband Internet users, connecting with a dial-up modem has not been as simple until this pairing of LindowsOS with Earthlink's vast network.

Customers can buy computers with LindowsOS pre-installed at Wal-Mart ranging from $199 to $599. These may be equipped and ready to run with Earthlink's service after upon set-up.

As the No. 4 ISP in the U.S., Atlanta-based EarthLink serves more than 7,500 dial-up numbers.

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