Comptel: Globix goes Neon

LAS VEGAS--Globix Corp. this week announced a name change. Two years after Globix merged with Neon, the company has sold off most of the Globix hosting assets and decided to become Neon Communications Group, trading under the stock ticker “NGI” instead of “GEX.”

The name change reflects a new strategic direction, said Kurt Van Wagenen, president and CEO. “We have used the proceeds from the sale of the Globix assets [including its headquarters] to pay off $100 million in debt and to fund new growth,” he said. “We are now a pure-play transport company.”

Neon operates as a wholesale provider in the Northeast and along the Atlantic Coast and has one significant point of differentiation from other wholesalers there, he said.

“Our broadband network is built on utility company rights-of-way, which are physically different from the major service providers in the market,” Van Wagenen said. “Our major service providers customers are companies that require good reliability and diversity, which we can provide.”

In addition, he said, Neon focuses on Tier 2 and Tier 3 markets “where there tend to be fewer alternatives.”

Neon believes its new status as an essentially debt-free company makes it a strong wholesale partner, Van Wagenen said. The company has about 140 customers and gets about 90% of its revenue from wholesale sales, offering services at DS-3 and above to companies of all sizes.

“We are now seeing a lot of requests from big wireless carriers for cell site backhaul,” he said. “We don’t have a product in that area yet, but it is an area of planning for us.”