Business Intelligence - A Q&A with New Edge Networks Dan Moffat

A Q&A with New Edge Networks Dan Moffat

TAG: What’s new in 2004 for the world of business broadband?

Dan Moffat: Well, there is a lot happening! The biggest things are Wi-Fi,
VoIP and low-cost VPN for multi-site business customers. New Edge Networks has
focused on business multi-site networks since its inception. We are doing a lot
of these for frame/ATM and multi-site business customers migrating from dialup
to VPN.

We also have tailored customers networks for VoIP. For example, we have a
national customer using New Edge Networks to provide five locations in Idaho
with VPN and four-digit dialing over a Toshiba VoIP key system.

Next you will see us offer a DSL router that includes Wi-Fi built in. This
allows a business or work at home to have a wireless LAN with their New Edge
Networks business-class DSL.

TAG: How do you see the market for these services evolving over the next 18
months?

DM: There is strong fundamental demand for business broadband services and it
is going to accelerate. Right now there is a lot of hot air in the broadband
market. We think this year the cream will rise to the top in terms of quality
providers. I think we have successfully positioned New Edge Networks as a
quality provider for businesses and carriers.

TAG: Are convergence technologies such as IP telephony continuing to impact
demand?

DM: If you have a VPN, the next step is VoIP VPN. Why not offer your users
four-digit dialing over the VPN? In fact, we think VPN VoIP is the best
application for VoIP right now. This is the future of business voice
communications.

TAG: How do managed service options affect the market?

DM: Customers want managed and secure services. They want responsive customer
care. Carriers need to think like a customer. Customers dont want to learn
"telephonese" or be in the telecom business. They want quality service
and a live body to talk to.

TAG: This is a fast-moving area. How would you counsel channel partners to
remain nimble and successful?

DM: Channel partners have a major inherent advantage that will never go away.
They can look customers in the eyes and sell "belly to belly." I think
channel partners are getting smart about commodity services that have high churn
vs. solution-based services that offer real value. Multi-site business networks
have nice margins and low churn. Of course you need a quality provider you can
count on like New Edge Networks! By the way, Frost and Sullivan selected New
Edge Networks as its 2004 Telecom Service Provider of the Year.

TAG: In your view, what are the three biggest drivers for business broadband
today for customers?

DM: Its all about the movement of information content in their businesses
and it varies by business. Whether it is credit card verification, pricing and
inventory for retail, or moving large files for medical or dental, its all
about speed, quality and customer service. Business customers want to remain
competitive and keep down their networking costs. Customers expect more for
less.

TAG: Is the sale becoming commoditized?

DM: I recall hearing one of the biggest ISPs say broadband access is a
commodity. Many small ISPs have been shut out of consumer broadband by the RBOCs
and cable companies.

I think on the low end, the RBOCs are commoditizing single-site business
broadband, that is until customers really begin to appreciate the differences.
Multi-site broadband will always be tougher to get right and messy in the last
mile the edge of the network. Thats why we are called New Edge. We like
doing the complex projects in the last mile. The multi-site business is tough to
commoditize.

TAG: What’s ahead for New Edge Networks and its agents this year?

DM: You will see us continue developing our Wi-Fi Ready, VPN Ready and
VoIP Ready offerings. We will continue to expand out broadband coverage
offerings via out BigFoot project. We will continue to work to expand our
partner channels and improve our service delivery.

TAG: Other thoughts?

DM: Mark Twain once said, I knew man that grabbed a cat by the tail and
learned 40 percent more about cats than the man that didnt! We took on
business multi-site networks and have proven we can delight our business and
carrier customers.

Its just getting interesting in telecom. Things are moving faster. Enjoy
the ride!

About the Interviewee:

Dan Moffat is founder and CEO at New Edge Networks (www.newedgenetworks.com).
Dan began his telecom career in 1981 with Tymnet, one of two original
packet-switched carriers. Throughout his career, Dan has held positions in
operations, sales and marketing with Pacific Telephone, US West, IBM ROLM, Bank
of America, US Intelco and GST Whole Earth. Prior to New Edge Networks, Dan
founded the telecom strategy firm, Access Value Services.

Dan is first vice chairman of the Association for Local Telecommunications
Services (ALTS). He also is a member of the board of directors of CompTel, a
Washington D.C.-based competitive telecommunications association.

Dan has a bachelor’s degree in finance from California State University,
Chico; a master’s degree in telecommunications from Golden Gate University; and
an MBA from Santa Clara University. A California big wave surfer, Dan also has
completed four Ironman triathlons since 1999.