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| Aug 11, 2005 1:44 pm |
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re: re: Mcleod USA assets |
Mark Burkholder
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Kenneth:
Having been through carrier meltdowns in the past I have to strongly disagree with your assertion that a service disruption is unlikely. At least in IL carriers are only required to offer a 30 day disconnect notice which, as pointed out, is not enough time to go through the process of carefully selecting a new carrier. That is why a smart customer would start that process now so if the notice comes they will have already selected an alternative.
I agree with Cameron because already I have had a couple of McLeod USA customers attempt to break their contracts and they are being told that they company is in solid shape, has a good plan to maintain service and expects that it will be business as usual for some time. Yet McLeod refused to comment when their own internal auditor Deloitte Touche LLP, raised “substantial doubt” over McLeodUSA’s “ability to continue as a going concern.”
Here is the full article on that:
http://www.phoneplusmag.com/articles/581feat03.html
We went through this recently with ICG. I can't tell you the nightmare it was in terms of time, resources and headaches trying to get that cutomer who had a simple integrated T-1, over to a new provider before the disconnect date. I am talking about having to verbally tongue lash and threaten them in order to extend disconnect dates so my customer would not be without service. They are a small customer so having to install temporary lines and internet would have really hurt their bottom line. Sure a large enterprise can afford to allocate resources and budget for redundancy but a small business trying to keep their telecom expenses to a minimum is really put in a bind.
Again, I agree a customer should carefully consider pricing, product offerings, long term financial stability and many other factors before making any hasty decisions. However that needs to start now because there will be absolutely no warning of the 30 day notice if it comes to that. McLeod USA is now a two time loser and I just can't see their creditors wanting to bring in a management team to right a ship that has sunk twice. HOpefully, Kenneth is right because although my firm would benefit from a McLeod meltdown, it would be nearly impossible for all of those customers to migrate in 30 days. Given their treatment of customers in the past, I don't see McLeod offering more of a notice.
If anyone has a contact at McLeod please email me so I can see if they would be willing to provide a list.
Thanks,
MarkPrivate Reply to Mark Burkholder (new win) |
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