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Date: 1998-12-12

PSINet 98: Global fest inhaliert

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Wie PSINet, einer der wildesten Player auf dem globalen
Markt, angetreten ist, um die Telekoms dieser
Welt das Fürchten zu lehren & wie's der Highspeed-
Company dabei ergangen ist, erzählt die unten angeführte
Saga. Vor mehren Äonen hatte PSINet mit UUnet auch
Eunet Deutschland inhaliert. Nach dem Urteil in der
Compuserve Affäre zog PSINet sein hosting center aus
Deutschland ab, nun dient die Schweiz als sicherer Server-
Hafen für Europa.

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Margret Johnston
12/11/98 PSINet this year acquired or formed alliances with
14 companies, more than doubled its revenue and added
more points of presence to its network and stretches of fiber
optic cable linking key geographic regions.

Although officials at this Internet service provider expect
revenue of $300 million in 1998, up from $122 million in 1997,
PSINet remains unprofitable competing against the telcos.
These telcos dominate the ISP market and stand to lose
money on their commercial Internet access and services
offerings, thanks to their deep pockets.

Edward D. Postal, the company's chief financial officer,
blamed the cost of expansion for PSINet's net loss of $134.9
million in the first nine months of 1998, compared with a net
loss of $31.3 million for the first nine months of 1997.

Postal deflected attention away from the losses, saying
financial analysts are satisfied with PSINet's projection that
the company is on target to break even on the benchmark
measurement of earnings before interest, tax, appreciation
and amortization by the third quarter of 1999.
Postal said, speaking this week at an editor's day at the
company's Herndon, Va., headquarters. "We are on target to
achieve more than 100% revenue growth for 1998."
Other ISPs, including AT&T and MCI WorldCom, are focused
on even larger clients and "have trouble stretching down" to
the market segment that PSINet is pursuing, Schrader said.

PSINet acquired five companies in the third quarter alone, the
most significant of which was Tokyo Internet for $115 million.
The purchase brought 6,300 new business customers and
made PSINet the second largest business ISP in Japan after
Another milestone this year was PSINet's announcement this
month of the activation of dark fiber network capacity in New
York City at OC-48, 2.4G bits/sec. The network, acquired
from Metromedia Fiber Network in May, also covers
metropolitan Washington, D.C., and links the two cities.

PSINet's points of presence grew to 500 in 13 countries this
year, and it dropped its first "wet" link, crossing the Atlantic
Ocean with STM 1 fiber optic cable and closing its link of
Asia, Europe and North America. In addition, PSINet's
customer base grew to 55,000 corporate accounts, more
than double the 26,400 it had at the end of 1997.
A third hosting center is due to go on line in London in the
first quarter of 1999. The fourth center announced thus far is
planned for Switzerland.

In two rooms equipped with humidifiers and cooled by
massive air conditioning units, PSINet hosts and maintains
the Web servers for hundreds of companies. The 11,000
square feet of 18-inch raised floor space for server racks at
the Herndon facility is about 20% full. PSINet plans to add
space to the facility, because it will be full in 12 to 18
months, according to J. Eric Dorsch, director of consulting in
the application and Web services division.
Dorsch and other engineers at the hosting center worked
many hours of overtime last month ahead of Senator John
Glenn's return to space when NASA approached PSINet with
an urgent need to enhance its Web site. PSINet spent 10
days feverishly constructing the Web host for NASA's site,
where it provided information about the 77-year-old
astronaut's historic shuttle ride.

The site recorded more than 29 million hits and over 4 million
Web page view downloads during the six-hour launch event,
Dorsch said. The site also handled more than 5,000
simultaneous streaming sessions of the NASA television
program, the most PSINet's hosting center had ever done.
"Our goal is to become one of the top three providers to
businesses in all of the top 20 global telecom markets," he

full text

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edited by Harkank
published on: 1998-12-12
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