Report: Vitts Calls It Quits

Shakeout that has decimated HarvardNet, Digital Broadband Communications and other DSL providers in recent weeks appears to have claimed another victim.

by David Aponovich of boston.internet.com [January 22, 2001]

Vitts Networks, a Manchester, NH, provider of DSL and other network services to 1,000 businesses in New England, has reportedly slashed 270 of 300 jobs as it prepares to shut down, according to a published report.

The Manchester Union Leader, citing unnamed sources, reports that Vitts broke the news to employees late last week. Remaining workers will help the company wind down operations by March, the newspaper reported.

Nix dictum
Executives did not immediately return calls seeking comment. A customer-service representative said he knew little about the changes, other than the company told employees of a "restructuring" and that more information would be released today.

Vitts was started in 1996 and its financial backers include Cabletron Systems, Safeguard Scientifics and Exelon. Vitts serves businesses throughout New England, excluding Connecticut, although it was planning to build a 13-state network stretching to Virginia.

Parlaying palter?
A month ago, Vitts' CEO Chris Oliver told boston.internet.com that his company was doing well even as others in the field were dropping out of the DSL game and laying off hundreds of workers.

"We're not just somebody trying to play a trend that seems to be popular at a given time," Oliver said.

On the day that regional competitor Digital Broadband of Waltham, MA said it was cutting 85 percent of staff and exiting the DSL business, Oliver said Vitts was signing up some of their customers.

Oliver said Vitts was succeeding by providing more than just DSL service and not focusing on low-end consumer services. Its menu includes linking multiple offices through local- and wide-area networks, media-streaming services and network security. The company in November opened a $10 million data center in Manchester.

Digital Broadband's bad news came shortly after HarvardNet, of Medford, MA exited the DSL business and cut 280 jobs. HarvardNet dropped its DSL service Jan. 15, after raising more than $235 million to build its network.

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