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Verizon Canceling Wholesale FiOS?
DSLExtreme tried, failed to renegotiate new contract
by Karl Bode 08:47AM Tuesday Jun 22 2010 Tipped by darcilicious See Profile
In March of last year we noted how Verizon had struck a deal with DSLExtreme -- allowing DSLExtreme to rebrand and resell FiOS fiber to the home services. Such deals were few and far between, given that the cost for a small ISP to gain access to the Verizon FTTH network is substantial -- leaving the smaller ISP with rather small profit margins. Now according to users, they're getting letters informing them that Verizon has chosen to discontinue their fiber wholesale relationship with DSLEXTREME -- and as of July 1 the company says they'll no longer be taking new customers under that relationship. The full e-mail below the break.

quote:
DSL Extreme would like to take this opportunity to thank you for being a loyal client. It is with our deepest regret that we inform you that as of July 1st, 2010 we will no longer be able to sell DSL Extreme Fiber service to new clients. Despite the exponential growth that we experienced over the past year, Verizon has opted to discontinue our long term Fiber contract prior to its expiration and remove the product from their wholesale channel. As we feel the Fiber service is a great product and as shown by our significant growth, one that clients would like a choice in whom they purchase it from, DSL Extreme made extensive efforts to negotiate this with Verizon. Despite those efforts and as there is no regulation in place requiring them to sell the product via a wholesale offering; Verizon came to the decision that they will no longer allow us to offer this service to our clients.

DSL Extreme will be able to continue providing you Fiber services at your existing location until March 31, 2011. We are currently working on a process with Verizon to ensure the smooth transition of your services to Verizon in March of next year. As the time gets closer we will be reaching out to you with more detailed information on the transition process. In the meantime you can continue to enjoy your DSL Extreme Fiber services.

Regardless of this unfortunate situation, DSL Extreme maintains a good relationship with Verizon as one of their largest wholesale broadband providers. We will continue to work with them and look forward to hopefully being able to service you again in the future.

We apologize for the inconvenience caused to you. Thank you for your anticipated patience and support in dealing with this difficult situation.

If you have any further questions please contact our customer service department at 800-774-3379.

Regards,

DSL Extreme
There's variations of this letter going to customers in and out of Verizon's soon-to-be-offloaded Frontier territories, but this change looks to impact all rebranded FiOS DSLExtreme customers. We've dropped a line to Verizon to get more detail on precisely why they've discontinued this relationship.


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