By now you've heard about the NorVergence bankruptcy. Certainly, it's not the largest in telecom's recent past, but it is significant nevertheless.
The MATRIX also was said to include data networking features, such as firewall client software, private networking client software to connect branch offices and VPN software.
The box was shipped preconfigured. Once installed, it was to maintain a continuous management connection for remote monitoring, provisioning, testing, troubleshooting and upgrades as required.
Basically, the company was a reseller of local, long-distance, and wireless services along with a souped-up IAD (of course, the equipment and its exact nature and cost are central to the company's troubles).
It's not likely we'll know very soon exactly why the company owed its creditors an estimated $30 million, causing them to force NorVergence to file bankruptcy. What is known is that the impact of this misstep - whatever its cause - will do nothing to advance the resale platform.
It can only breed suspicion among end users who now will not see the convenience of a one-stop shop for services and equipment, only the risk of being one step removed contractually from the facilitiesbased supplier.
However, as a result, they too will be eyeing resellers with extra scrutiny. Qwest Wholesale's Executive Vice President Teresa Taylor told me this experience - the LEC is out some $15 million - is forcing her to rethink the division's credit policies and screening procedures.
Both NorVergence's suppliers and customers lose and, unfortunately, so do resellers in general.
KHALI HENDERSON
khenderson@vpico.com.
Editor in Chief
