New Edge Networks to migrate C&W data customers

New Edge Networks announced yesterday it signed an exclusive agreement to take on Cable & Wireless's 1500 data customers. The deal is similar to one stuck last week by C&W with Primus to migrate its U.S. voice customers.

As C&W exits certain markets as a provider of voice and data services in the U.S. and Canada, New Edge Networks will offer its customers a “hassle-free migration” without buying any of C&W’s network assets, said a spokesman for the company.

According to the spokesman, New Edge Networks runs the largest ATM backbone network in the country in terms of the number of nodes. Its ATM network has approximately 600 switches in 360 small and mid-sized cities in 29 states. New Edge connects to other carriers via 18 regional aggregation points.

With no upfront investment other than a little marketing, New Edge sees an opportunity to pad its bottom line. “If all 1500 customers migrate to us, Cable & Wireless picks up a cool $4 million and potentially we can jump our revenue by another $45 million,” the spokesman said.

C&W is looking to complete the transition by January. The companies are in the process of exchanging customer data as well as routing information. The majority of customers purchase dedicated Internet access, followed by frame relay users and private line customers. New Edge only has to pay for successful migrations and has 12 months to do so.

“The goal is to work very closely with C&W to eliminate to the fullest extent possible any disruption of service,” the spokesman said.

New Edge will honor all existing agreements and is offering discounts for customers that sign new term agreements with the company. By allowing customers to retain both their own equipment and IP addresses, New Edge expects a seamless migration. Earlier this year, the company paid $1.5 million for the customers, premises equipment and router infrastructure of AtWork, the commercial access division of AtHome, averting a service shutdown for those customers and gaining an annual revenue potential of $18 million.