NaviSite plays network middleman: National data network designed to connect CLECs, ISPs

Yet another competitor has entered the increasingly crowded data networking arena.

NaviSite Internet Services, formed in August as the Internet server management and Web hosting subsidiary of Andover, Mass.-based CMG Information Services Inc., is developing a network that will link competitive local exchange carriers and Internet service providers through a nationwide array of "megaPOPs."

NaviNet, as the new service is called, will offer ISPs the opportunity to expand coverage or increase capacity within coverage areas, as well as eventually offer corporate clients nationwide private networking through a range of local access numbers.

The plan is this: NaviSite develops partnerships with CLECs to place switch bypass equipment in the CLECs' central offices. When calls destined for NaviNet come through, they are routed to Ascend MAX TNT remote access concentrators, which then direct the traffic onto NaviNet. Jim Winkleman, chief technology officer at NaviSite and the brains behind NaviNet, explained that the CLECs' ability to aggregate local exchanges into one point of presence (POP) is key.

By building networks for ISPs, Winkleman has discovered that CLECs are able to give clients access from a single POP to all local prefixes in their service territories without violating tariffs for incumbent LECs. That, in turn, allows networks to use the CLEC to provide local dial-up access to several exchanges through that POP. NaviNet will use such megaPOPs to offer connections with greater security and reliability than the public network.

"We're building a dial-up network with a mission-critical approach," Winkleman said. "To deal with capacity problems, we're bypassing the [public network] and taking [traffic] directly to remote access servers."

NaviNet's primary target market is ISPs, with corporate telecommuting to follow. NaviSite is negotiating partnerships with CLECs and expects to announce its first agreements in early November. The wide area network portion of NaviNet will consist of leased lines, most likely from WorldCom or MCI.

"We may wind up with a mix of both for redundancy," said Scott Jones, NaviSite's business development director.

NaviSite isn't ready to disclose any CLEC partners or even the planned locations for its megaPOPs because no deals have been finalized. But NaviSite's goal is 75% coverage in the United States within 12 months, and it will target major markets in all areas of the country to meet that goal, Jones said.

As POPs are added, corporate networks and ISPs using NaviNet will be able to give users single local access numbers for metropolitan areas around the country. Because such access numbers will be unique to each ISP or corporate network, availability and security are enhanced.

Although NaviSite is a new company and NaviNet a new product, considerable planning has already happened behind the scenes, Jones said. The company has been cautious in discussing the project publicly because it wants to be certain that the network lives up to its billing.

"If you say 'mission-critical' and you can't deliver, it hurts that statement," he said.

NaviNet is not a unique concept-WorldCom's UUNet subsidiary and GTE's BroadBand Networks offer dial-up networks-but NaviSite expects to parlay its CLEC partnerships and switch bypass architecture into a strong customer base.

"With a combination of price advantages and state-of-the-art equipment, we'll be able to come out of the gate with a lower price," Winkleman said.

NaviNet's service should be in commercial use by early January, and Winkleman expects to win significant market share within the first year.

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