Wholesaler in pact with Williams

Universal Access Inc., a 9-month-old company that wholesales network services to small carriers and Internet service providers, has signed a multimillion-dollar agreement to buy services from Williams Network for resale to other carriers. The agreement expands an existing relationship.

UAI buys bulk connections from larger carriers, then sells it in smaller chunks to its customers.

"Say a [UAI] customer wants a DS-3. We'd buy an OC-12, then parcel it out to our end customers," said Patrick Shutt, UAI's CEO.

UAI started out buying local access connections in bulk from local exchange carriers, then parceling those connections to ISPs at lower rates than the ISP would pay directly to the carriers, Shutt said. UAI also provides neutral collocation facilities nationwide for ISPs.

But customers began requesting long-haul backbone connections, and UAI has been buying from several sources, including IXC Communications Corp., Qwest Communications, Williams and WorldCom.

For Williams, the UAI deal provides access to a larger customer base.

"Our largest customers are the [Bell companies] and competitive local exchange carriers," said Williams Network President Frank Semple. "A deal like this gives us access to [UAI's] customers."

The line between network retailing and wholesaling is changing, and Williams and UAI eventually could find themselves vying for the same direct customers, Semple said.

"We could be competitors as well as have a good customer-vendor relationship," he said.

UAI is expanding on its relationship with Williams because "we're able to provision and install services with Williams faster than with other carriers," Shutt said.

Still, UAI will continue to buy from other sources, Shutt said.

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