Iserv puts digital pedal to the metal

Monday, January 22, 2007 - MiBiz
By Rod Kackley
MiBiz

GRAND RAPIDS - The aggressive acquisition and technology development strategy employed by Iserv Co. and Iserv Technology Group (ITG) last year shows no signs of slowing down in 2007.

For instance, Iserv customers will soon be able to reach out and touch someone with digital phone service. CEO Vic Shepherd told MiBiz the company believes that technology holds "significant" potential.

"Digital phone service is in a test market right now," he explained. "We handle all of it. And that will be great for our customers because if you are on the network, you don't have to have the phone company's service."

Investments like that will take Iserv into the first half of 2007, following up on what Shepherd described as the 11-year old, Grand Rapids-based ISP company's "best year ever."

The second half of last year also saw Iserv Co. and the Iserv Technology Group (ITG) completing several major investments to improve technology infrastructure and expand the company's service area. That included the introduction of 15 central offices and lighting 38 miles of fiber optic cable in the Grand Rapids area.

Shepherd said that the infrastructure investments will allow Iserv to more aggressively market and better serve its own direct data connectivity services in West and Southwest Michigan. He also said that Iserv is developing new products - such as digital phone service - and new marketing plans to further leverage the CLEC (competitive local exchange carrier) status of its Holland-based EagleNet affiliate brand.

CLECs can use existing communications infrastructure, such as local central offices, to provide high-speed Internet connectivity to homes and businesses directly without going through a traditional local phone company. EagleNet's CLEC status has permitted Iserv to establish new links in central offices primarily in Mid and West Michigan. As a result, businesses and homes in these areas will have additional options for Iserv Digital Broadband, dedicated business-grade connectivity and other services in the weeks and months to come.

Iserv's newly lit fiber inter-connects five critical central offices in the West-Michigan, providing Iserv with SONET protected gigabit communications. The new fiber puts Iserv and its customers at the forefront of secure, reliable technology today, and readily supports tomorrow's innovations.

ITG also announced the acquisition of three Michigan based Internet Service Providers (ISPs) during the period: Holland-based MacNet, Alpena-based Northland Library Center and Trenton-based I-Link International. The acquisitions, done through ITG's Iserv Co., marks ITG's 18, 19 and 20th acquisitions in the past two years, and further establishes Iserv as one of the leading independent ISPs in the Midwest. Terms of the transactions were not disclosed.

Although he declined to release details of those transactions, Shepherd said that, "We financed that all from internal operations. We don't go out and raise money. We are a well-rounded company that invests well."

Shepherd also believes that Iserv has to continue its aggressive growth strategy to compete with what he described as the "monopolies," such as Comcast. "These acquisitions have been positive. We purposely find companies that are synergistic to us. That will continue. The network that we are growing allows us to take over many of those companies' customers and offer them new services."

He also declined any offer of assistance from either the state or federal governments. According to Shepherd, the CLEC status that is allowed by the Michigan Public Service Commission allows Iserv to compete although "there is a lot of pressure to put people like us out of business nationwide by the monopolies."

Since its beginnings in 1995 as a local ISP, Iserv has grown rapidly as it has expanded its menu of services. Iserv's Tier 1 Data Center is one of the leading facilities of its kind in North Amerimages/search_web.gifica, with redundant and reliable networks, and engineering and design expertise.

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This article appeared in the [Monday January 22, 2007] issue of MiBiz, read by upper management executives in West and Southwest Michigan. Print subscriptions are free to qualified individuals who are employed in West and Southwest Michigan. For further information about MiBiz, visit www.mibiz.com .