Globalcomm: McLeod tightens network focus

Chicago–McLeodUSA this week is taking the wraps off its new IP-based integrated voice and data services, furthering its new focus on small and medium-sized businesses in its top regional markets.

The company announced the availability of services that include multiple voice channels and high-speed Internet access, along with options for IP virtual private network service, managed firewall and network security, branded e-mail and a Web portal for customer self-management and administration.

In addition, McLeod is in the process of rationalizing its network operations, said Chris McFarland, the new group vice president and chief technology officer of McLeod.

“We took a look at McLeod’s network, which is facilities-based, in 20 states,” he said. “It’s robust, reliable and efficient. But we found it’s about an inch deep in some areas. We are deciding now which geographies we are going to invest in and which products. We need to re-evaluate our network footprint, and the first task is, do we need all these assets?”

McLeod will focus on its larger metro serving areas, where it already has critical mass, including the Great Lakes area and major cities within the 20 states--mostly in the Midwest, Northwest and Southwest--that it serves and concentrate new sales resources and other investment there, he said.

The company also will be rolling out more virtual services on its integrated IP network, to bring greater functionality to the small and medium-sized enterprise market, he said.

“This is the year we re-rationalize our products in development--2007 will be the year we roll out enhanced product bundles,” said McFarland, a former Allegiance Telecom exec brought to McLeod by its new CEO, Royce Holland, who took the helm in January.

The goal is to increase gross profit margin and improve network optimization, he added.

“I think our differentiation will be a cost-effective service bundle, together with the trusted customer service that McLeod is known for,” McFarland said.