DSL hits hard times in US

DSL provider DSL.net recently announced it will cut 90 employees and 250 central offices (CO) in its nationwide network in an effort to conserve cash.

          DSL provider DSL.net recently announced it will cut 90 employees and 250 central offices (CO) in its nationwide network in an effort to conserve cash.

          The company becomes the latest in a litany of DSL providers that are rolling back their operations as their cash reserves run low. Earlier this month Rhythms NetConnections announced it would cut COs in nine markets.

          DSL.net's CO reduction should affect less than 5% of its customers, which are mostly small and midsize businesses. Company officials say the cost-cutting moves will let the firm reduce the amount of cash it loses each month to less than $US4 million by the fourth quarter. They add that the company will need less than $US40 million of new capital to become cash-flow positive. DSL.net provides symmetrical DSL service in more than 375 cities.

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