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Spring, 2005
 Content: • Local ISPs regroup to survive
The pioneers who introduced the Internet to residents of Berkshire County have become a band of Davids doing battle with corporate Goliaths. A changing marketplace has forced these entrepreneurs to regroup and alter their business strategies. When Fred Meczywor installed his first modem, the listing for "Internet Service Providers" didn't exist in the yellow pages. In 1995, working out of his garage on North Summer Street in Adams, Meczywor founded Berkshire County Network or BCN, one of the area’s first ISPs. "We started out with 10 modems," he said. "Two weeks later we added 10 more; then we added 10 more, then 10 more. And we weren't advertising. People just started calling. It was all word of mouth." The business blossomed. In 1998, Meczywor moved to a building on Depot Street in Adams, still the headquarters of BCN. While he had the prescience to foresee the popularity and utility of the Internet, no one could have predicted technology's impact on ISPs. Bandwidth demand In the "slow" old days of dial-up modems, tiny packets of information made their way into computers through twisted pairs of thin copper wire, i.e. the telephone line. Acquiring large chunks of data in that fashion was like trying to fill a swimming pool with a garden hose. As the groundswell of technological innovation began to look like a tidal wave and computer literacy became ever more ubiquitous, the quest for faster connectivity accelerated. The desire to watch video clips, play interactive games and download digital photographs required increased "bandwidth." ISPs quickly realized that the thirst for high-speed access to the Internet was almost unquenchable and a slew of billion-dollar corporations wanted a piece of the region's action. Nationally known ISPs operating in the Berkshires include cable giants Adelphia and Time Warner. Verizon also delivers DSL (digital subscriber line) service to residential customers living within three miles of a centralized telephone switching station. "Verizon and the cable companies began fighting it out and we were caught in the middle," Meczywor said. Michael Bathrick, another ISP pioneer, takes a dim view of what transpired. Bathrick started Berkshire Net more than a decade ago. His optimism of the late 1990s has been tempered by the onslaught of competition. "Fred [Meczywor] probably told you that the Verizons and the cable companies are slowly trying to wean us out of the marketplace," said Bathrick. "We've basically been blocked from using cable and we are not playing on the same playing field as the Verizon-owned subsidiary that provides Internet service. It’s making it very difficult for us to be able to compete." Bathrick has done what he can to give voice to his position, and has testified before the Federal Communications Commission. "We are asking our clients to comment on various FCC filings that are pushing the legislation in the direction of the Verizons and the Time Warners and the Adelphias," he said. Berkshire Net is making some inroads. "We are entering into a contract with Verizon right now to provide DSL," Bathrick said. "But unfortunately the only way we are going to compete on that is with businesses [as customers]. We won't be able to compete for residential service because our price would be too high. We’re also offering a wireless solution but that’s only available in downtown Pittsfield." For his part, Meczywor has streamlined BCN by joining a loosely knit partnership of small ISPs around the country. "It was put together by a really sharp guy from Eltopia, Wash.," he explained. "His name is Will McHugh and this has allowed us to cut our costs." Carving niches Michael Martin, who manages Inter-Access Inc. of Pittsfield, said his company is trying to offset the loss of dial-up subscriptions with new products and services. On the DSL front, Martin maintains that affording the terms and conditions laid out by Verizon to buy its unbundled network offerings has proved untenable. "So we've carved out niche markets," he explained. "Number one, there are people who still value dial-up with good service." he said. "They go in every day, just to get their e-mail. They're not 'surfaholics.’ They’re not using their computers for voice or gaming. They just want to get their three messages and get out. "So if the price is right, they're going to stick around, especially in the rural areas and the hilltowns," he continued. "We’ve seen steady customer bases in those areas and in that demographic category." Inter-Access also has seen steady growth in satellite-based broadband services. The company installs and maintains a "hybrid solution." A dish is installed for free or a minimal charge. Users can expect 400k download speeds. A standard 56k dial-up modem is used for uploading. Martin said the cost is far more economical than two-way satellite systems. In the more remote sections of Berkshire County, "that is a huge part of our growth in this area," he said. Inter-Access has seen healthy growth, too, in the sale and service of computers. "We're very busy on the repair side," said Martin. "Actually we are receiving more income on the repair side than our losses on the dial-up side. As people switch to broadband, they remember us for being good service providers and as soon as they get a virus ... they bring their computer back to us to fix. We have a good relationship with everybody so it’s working out." Richmond Connections Inc., headquartered in Pittsfield, is affiliated with Richmond NetWorx. With the tag line, "Local Roots, Global Connections," the company became an ISP in January 2000. Christa Proper, general manager of Richmond Connections, remains upbeat about the future. "We are unique because we are also a telephone company -- Richmond NetWorx, which is a CLEC [competitive local exchange carrier]," she explained. "We provide local dial tones, long distance, Internet, DSL, broadband, so we can pretty much offer all services to customers. "Right now we offer DSL in Pittsfield and Lenox, but we do have plans for expanding our footprint for our DSL service. I think dial-up is something that is going away and broadband is where the future is." Will Berkshire County's local ISPs go the way of the general store and full-service gas station? Or will their ability to provide personal service give them an economic edge? Meczywor remains sanguine about the future of BCN and meeting the needs of the company's 3,000 customers. "For the older generation that wants the Internet, 56k is fast enough," said Meczywor. "They get their e-mail and surf the Web once in a while. They're not going to spend $30 per month for DSL. Our service is $9.95 a month, and $14.95 a month with an accelerator [compression software that can increase download speeds by a factor of five]." Asked about the future of local ISPs, Bathrick said, "I'm taking a wait-and-see attitude about the future of our business. The FCC has just changed their chairman. Michael Powell stepped down, and he was the big push behind the Verizons and the cable companies getting their way and the hell with everyone else."  RETURN TO TOP |
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