By Peter Radizeski, RAD-INFO
The 2008 New Edge Strategy: more of the same. EarthLink CEO Rolla Huff spent time covering the New Edge strategy on the analyst call for fourth quarter 07. He did not rule out an acquisition, but has not seen one that makes sense yet. And the sense has to be a cash and debt sale, not a stock dilution deal, since EarthLink has been tirelessly shoring up the stock price for a sale.
New Edge chases after multilocation small and medium business the same market that every hosted PBX vendor chases and the next market segment that the CLEC’s like PAETEC and XO will be chasing.
NEN has two factors in its favor: a wide DSL footprint and VISA/Mastercard/PCI Cert.
So retail operations are the focus. Convenience stores; jewelry chains; Quiznos; Subway.
A business focus for service providers to leverage the New Edge Network: security cameras, secure WLAN and managed router. Also, using NEN for hosted PBX vendors now that DSL comes with QoS. Add value to the pipe that New Edge provides.
If I was Rolla, I would be pushing Helio smartphones to NEN clients and looking for an FMC strategy. (Heck, if XO can do FMC, why can’t EarthLink?)
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