Cogent Launches 500K Product to Compete with DSL Offerings
WASHINGTON, D.C., January 27, 2003 - Cogent Communications Group, Inc. (AMEX: COI), a Tier One, next-generation optical Internet Service Provider, announced today that it is launching an On-Net 500 Kilobit per second (Kbps) service called Fiber 500©. This new product will compete directly with DSL offerings on price, but it will also provide a superior level of performance that cannot be matched by ordinary copper line-based services. Cogent's all-optical, facilities-based network enables Cogent to provide each customer a dedicated, non-oversubscribed Internet connection with a 99.99% reliability guarantee.
Cogent is offering Fiber 500© in 20 markets nationwide in the same buildings in which it provides its trademark service of 100 Mbps for $1,000 per month. Fiber 500© is designed to attract approximately 40% of an office building's tenants that currently use DSL or Cable modems and would not typically consider a jump to 100 Mbps at $1,000 per month. Pricing Fiber 500 at $249 per month will provide DSL customers with a cutting edge, higher performance network at a price they can afford.
Today, DSL customers receive actual throughput based on their distance from their provider's central office. This means that a DSL customer pays for an advertised level of service but only receives a fraction of the bandwidth promised. Cogent, on the other hand, provides dedicated bandwidth so customers enjoy the exact throughput they pay for 24 hours per day, every day of the year. Cogent's Fiber 500 product is superior to DSL due to the use of fiber connectivity, full service level agreement (SLA) and 17 day guaranteed installation time.
"We want to be equally attractive to every tenant in a Cogent designated building regardless of their bandwidth needs. It's tough to ask someone paying $300 per month for DSL bandwidth to jump to $1,000 per month for 100 Mbps, no matter how great of a deal that really is. Our Fiber 500 product is designed to provide a superior product to the DSL marketplace," said Dave Schaeffer, CEO Cogent Communications. "Fiber 500 provides a protected, dedicated half megabit connection at a price point that will complement Cogent's 100 Mbps offering, not compete with it."
In addition, Cogent's network is built in a series of rings that enable the network to remain in operation even if the fiber is cut by redirecting communications around the ring in an opposite direction. The network proved itself on September 11th, 2001 when Cogent was the only network in lower Manhattan to not lose customer communications that day.
Cogent-qualified buildings typically are over 150,000 Square feet, contain 50 or more tenants, and are located in central business districts of large, metropolitan cities.
About Cogent Communications
Cogent Communications (AMEX: COI) is a Tier 1, facilities based, all-optical ISP focused on delivering ultra-high speed Internet access and transport services to businesses in the multi-tenant marketplace and to service providers located in major metropolitan areas across the United States and Canada. Cogent's simple product set features either 100 Mbps or 1,000 Mbps dedicated, non-oversubscribed bandwidth at $1,000 and $10,000 per month respectively. These connections are delivered over Cogent's 80 Gbps backbone, making Cogent's network the largest of its kind in the country.
The Cogent solution offers the elusive combination of higher quality at a lower price. Data-only network technology combined with network ownership has provided Cogent with the ability to offer ultra-high speed Internet access at affordable prices.
Cogent's network consists of a dedicated nationwide multiple OC-192 fiber backbone, multiple intra-city OC-48 fiber rings, and optically-interfaced high-speed routers. Cogent has been recognized as the first IP Optical Cisco Powered Network (CPN). Cogent acquired portions of the U.S. operations of PSINet, Inc. including the network, customer base plus the three data centers located in NY, LA and Herndon, VA.
Fiber 500 is a copyright of Cogent Communications, Inc.
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Information in this release may involve expectations, beliefs, plans, intentions or strategies regarding the future. These forward-looking statements involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to Cogent Communications Group, Inc. as of the date of the release, and we assume no obligation to update any such forward-looking statement. The statements in this release are not guarantees of future performance and actual results could differ materially from our current expectations. Numerous factors could cause or contribute to such differences. Some of the factors and risks associated with our business are discussed in Cogent's registration statements filed with the Securities and Exchange Commission and in its other reports filed from time to time with the SEC.