ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, November 13, 1996 TAG: 9611130050
SECTION: CURRENT PAGE: NRV-1 EDITION: NEW RIVER VALLEY
DATELINE: BLACKSBURG
SOURCE: MARK CLOTHIER STAFF WRITER
A Tennessee-based Internet company announced the takeover Tuesday of one of the New River Valley's first locally owned Internet access providers.
Knoxville-based U.S. Internet has already mailed information to NRVnet's approximately 2,000 customers, informing them of the change.
Customers will have until Dec. 1 to decide either to sign with U.S. Internet or choose another provider.
Blacksburg's NRVnet has experienced billing and service problems since its November 1995 inception. It is one of two locally based access providers that arose after the Blacksburg Electronic Village stopped providing low-cost service for nonuniversity customers in July.
By taking over NRVnet's customer list, U.S. Internet spokesperson Tom Badgett said the company will improve the equipment and service, probably maintain both NRVnet's Blacksburg and Christiansburg offices and likely keep the NRVnet name.
As of Dec. 1, NRVnet will be a subsidiary of U.S. Internet.
U.S. Internet co-founder and chief technical officer, Niels Jonker, said customers who stay with NRVnet will "notice marked improvements in Internet accessibility, speed of connections and technical support."
A spokesperson from NRVnet could not be reached for comment Tuesday. Last week, NRVnet founder Ted Hudson declined to comment on the possible change.
U.S. Internet declined to characterize the takeover as a sale of NRVnet. No terms or other details of the customer-list takeover were released.
U.S. Internet will be equipped to handle 28.8k, 64k and 128k speed modems, dedicated Integrated Services Digital Network, or ISDN service and T-1 connections for high-volume users.
The digital phone lines are more reliable, quieter and much faster than the 28.8k modems NRVnet now uses, Badgett said.
The company also will maintain a full sales and technical staff, and offer 24-hour, seven-day-a-week help desk phone lines.
The monthly rate for unlimited Internet access - $19.95 - stays the same, as long as the customer pays by credit card. By cash or check, the new rate will be $24.95.
Badgett said U.S. Internet will increase the number of access lines and will likely expand coverage area into Roanoke and other parts of Southwest Virginia.
In May, NRVnet sought investors in an attempt to raise cash, including via an unusual on-line plea and meeting. NRVnet set aside 20 percent of the company's shares, sold in blocks of 100 at $20 per.
U.S. Internet's Badgett said the Internet-access industry has boomed in the three years since his company started.
"We were about the 100th Internet company then," he said. "Now, there's between 5,000 and 6,000. The industry exploded for three years, now it's imploding. Companies start up, begin to offer access, build a customer base. And then for the smaller companies, it gets tough to provide service."
LENGTH: Medium: 58 linesby CNB