Tut brokers deal for new BLECs

Tut Systems today said it has bought the rights to most of its own equipment and other assets formerly owned by Seattle-based service provider Reflex Communications.

In turn, the company has transferred the assets to a number of service providers including InterQuest Communications and Axis Technologies.

Before closing its operations in late March, Reflex Communications was using Tut equipment to offer broadband services to apartment residents in Arizona, California, Colorado, Oregon, Texas and Washington. Part of the reason behind the move was the number of end-user customers that came to Tut asking for service to be restored, said Mark A. Carpenter, executive vice president of product development and marketing for Tut.

“The Reflex network was one of the more robust networks of all the BLECs that were out there,” said Carpenter.

In exchange for transferring assets to the new BLECs for significantly less-than-market prices, Tut is getting commitments for future business. “These guys can take over a set of buildings and within a six month period of time go cash positive,” said Carpenter.