The Internet carrier for Hollinet.com announced plans Monday to
cut ties with the Hollister-based Internet service provider by the
end of business hours Wednesday because Hollinet is
”
not fulfilling the terms and conditions
”
of their contract, according to officials from New Edge
Network.
The Internet carrier for Hollinet.com announced plans Monday to cut ties with the Hollister-based Internet service provider by the end of business hours Wednesday because Hollinet is “not fulfilling the terms and conditions” of their contract, according to officials from New Edge Network.
That scenario would immediately leave the largest local provider of Internet and e-mail service without a carrier for its DSL services.
“We are ending our relationship with the service provider there because they’re not fulfilling the terms and conditions of the agreement,” said Sal Cinquegrani, executive director of corporate communications for New Edge Network. He declined to be more specific.
However, Hollinet officials said the decision will affect only DSL customers and will not affect the maintenance of more than 150 Web sites it maintains in San Benito County.
Essentially, New Edge Network is a national wholesaler of Internet service. Hollinet, which has been in business since 1996, is a local retailer.
Hollinet provides upkeep for numerous county and city Web sites, nearly 100 business sites, 38 nonprofit organization sites and several personal sites. New Edge Network has been Hollinet’s carrier since September 2000.
Hollinet Chief Engineer Brent Olson said the company has been negotiating with New Edge Network for a “smooth transition” for its customers from Hollinet to New Edge Network’s own direct carrier, Transedge. But because of a “misunderstanding” in negotiations, according to Olson, New Edge Network announced the abrupt ending of the relationship effective Wednesday.
“We’re almost certain that things will continue as normal,” said Olson, who added that he hopes a deal can be worked out, but could not guarantee there would be no interruption of DSL service in the area.
If Hollinet cannot negotiate for an extension beyond Wednesday’s planned termination of services, Olson said Hollinet’s DSL customers would be forced to find a different provider or possibly experience an interruption of service.
Vancouver, Wash.-based New Edge Network is a nationwide Internet service provider to more than 360 small and mid-sized cities. It also provides high-speed Internet access in 30 metropolitan areas.
This week, New Edge Network called county businesses and organizations affected by the decision to notify them of their options, according to Cinquegrani. He said New Edge Network will try to offer comparable rates and service by Transedge to “ensure that any potential disruption to customers is minimized.”
The decision to end their relationship with Hollinet, Cinquegrani said, was not a business strategy to attract local Internet users to Transedge.
“New Edge does not have the financial resources to hire the people to go face-to-face with all those customers in those areas,” he said. “We have been forced over the last couple years to establish our own direct service as a safety net to customers.”
Cinquegrani said the cutting of ties for DSL service between New Edge Network and Hollinet follows a trend that began with the market downturn in March 2000. “Since then it’s really been a mess,” he said.
DSL is only a small portion of Hollinet’s business, according to Olson. He said providing DSL is no longer a wise business strategy because of its low profit margins and growing competition from large telephone companies.
Hollinet officials said they were in the process of contacting customers, through e-mail and letters, to inform them about the current situation.
Robert Ornelas of the Hollister Recreation Division – which receives DSL and Web site service from Hollinet – said he spoke Tuesday morning with Hollinet officials, whom Ornelas said guaranteed the Web site service would not be interrupted. The representative also told him DSL service would “most likely” not be an issue.
“We’re just continuing the effort to make the transition as smooth as possible under the circumstances,” Olson said.
If Hollinet is unsuccessful in negotiating for an extension, Olson offered this advice for current DSL customers: “Do what you have to. To keep the data running, you’ll have to go with Transedge.”
