UNITED SYSTEMS ACCESS

Case Highlights

• Coordinated migration of 112,000 DSL customers and 40,000 web hosting accounts
• Negotiated with multiple parties toward company reorganization

Case Narrative

DSI served as financial advisor to United Systems Access and its subsidiary, (USA Telephone), which started as an independent rural Internet operation.  Its concept was to create sufficient UNE-P concentration customers within the proximity of a Baby Bell central office, then install a switch and convert to UNE-L. The company did not generate enough critical mass to compete with Verizon and FairPoint, although it did manage to integrate and purchase a number of national operations including USA Data, Inc. and such ISP operations as DFW Internet, InReach Internet and Nationwide Internet, a division of USA Telephone that included a number of other colocation and ISP facilities.  DSI was engaged to wind down and sell Nationwide and to assist the parent companies’ owners with the consolidation and financial restructuring  of the other entities.  Much of these efforts involved negotiations with creditors, internet, telephone and bandwidth service providers and third party web hosting companies.   DSI also helped coordinate the migration of 112,000 DSL customers and 40,000 web hosting accounts.  As with any similar engagement, DSI remained cognizant that regulatory issues and customer service are primary, as are concerns for the health and welfare of the affected communities.