Browse archives: 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | 1999 | 1998 | 1997 | 1996 | 1995

Published on 12/21/1998 All articles from this issue

Los Altos telecom startup emphasizes speed, service

printer friendly version

By Carol Tiegs

Special to the Town Crier

Buoyed by a successful funding of $100 million by a consortium of venture capital companies, Los Altos-based Advanced TelCom Group, Inc. aims to put the "local" back into "local telephone company."

That's the message from Clifford Rudolph, chairman and CEO of Advanced TelCom.

The new firm is a facilities-based competitive local exchange carrier, or CLEC, that focuses on the under-served markets in mid-sized cities. It provides business customers, small office/home office users and telecommuters a choice in local and long distance telephone and high-speed Internet services.

"We make as many decisions as possible locally. 'Customer first' is our tag line," Rudolph said.

Rudolph and partners Curt Wheeling and Mike Black worked together at Brooks Fiber Properties, a nationwide CLEC that was sold to MCI WorldCom for $3.3 billion.

During the acquisition transition, Rudolf said, "it became clear that large, tier one markets were being served but smaller ones were not. But many of those smaller markets have a highly educated, professional population looking for the latest technology."

In August 1998, with $2 million in seed money, Rudolph and his partners began developing a business plan and contacting vendors to serve those smaller markets.

Advanced TelCom provides its customers with business communications and Internet solutions including Centrex services, integrated voice mail and messaging services, and local and long distance services. It offers DSL-based Internet and telecommuting connections that are 10-15 times faster than ISDN connections. Service offices will be based in local markets.

The firm takes a strategic approach to entering new markets. "We send three teams in before we commit to a market," Rudolph said.

The first is an overview team that examines demographics, degree of interest in the Internet and new technology, he said. The technical team looks at infrastructure, including service and equipment locations. The third team Rudolph describes as one of "due diligence." Team members talk with local business and civic leaders and get letters of intent.

Based on these teams' research, Advanced TelCom develops a business plan for entering the new market.

During the first quarter of 1999, the firm will offer services in nine cities in California, including its new headquarters, Santa Rosa. It will also enter Tacoma and Olympia, Wash., and Salem and Eugene, Ore., Rudolph said.

"Business and civic leaders like that there's someone who's going to compete with the monopoly," said Gene Sokol, vice president for marketing services at Advanced TelCom. "People like the idea of calling a local phone number and finding someone who can help them."

The firm's initial investors are sufficiently impressed with the concept to have contributed an additional $60 million to the venture, Rudolph said.

Venture capital contributors include Alta Communications, AT&T Ventures, The Centennial Funds, Eagle Creek Capital, First Union Capital Partners, JP Morgan, Norwest Equity Partners, Norwest Venture Capital, OneLiberty Ventures and Telcom Partners.

Advanced TelCom will keep its office at 885 N. San Antonio Road in Los Altos, but will move its headquarters to Santa Rosa in January.

For more information on Advanced TelCom Group, call 559-8900 or e-mail gsokol@atgi.net.