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Technology - Circuits
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August 17, 2000


In Praise of the Mom-and-Pop I.S.P.


Homespun Touches Help Some Small Providers Hold On to Customers

By KATIE HAFNER



Marc Geller for The New York Times
Dane Jasper, who founded Sonic.net six years ago, said many other independent I.S.P.'s in California had been acquired by bigger companies.
FOR the past four years, I have remained loyal to my Internet service provider. It is not EarthLink, nor is it MindSpring. And it is definitely not America Online.

When possible, I support cottage industries. My milk comes from a local dairy, and my Internet connection comes from a small company in Santa Rosa, Calif., called Sonic.net. Few people outside Sonoma County have heard of it.

Sonic.net's 30 or so employees work in a small office building in downtown Santa Rosa, two doors from a pawnshop and across from the town square.

I could pay my $20 each month to any I.S.P. and get about the same thing, of course, but subscribing to Sonic.net makes me feel virtuous and civic-minded.

Being a Sonic.net customer today must be a lot like being a customer of Woodbury Telephone Company in Connecticut 50 years ago, or any of the thousands of small telephone companies before they were swallowed by the Bell System.

Or maybe it's like living in a town that still has a thriving independent bookstore, whose owners have a stake in the local community that is more than merely financial.

Web service providers like Sonic.net were common in the early 1990's. But in the past five years or so, many of the smallest ones have disappeared while AOL and a handful of others have undergone explosive growth.

By numbers alone, the Web service business doesn't look so dire. Boardwatch magazine, which tracks I.S.P.'s, recently reported more than 7,400 providers in North America, an increase of roughly 2,000 over last year. But those numbers reflect the changing nature of the business itself.

"A lot of I.S.P.'s are part of another business," said Todd Judd Erickson, managing editor of Boardwatch. Mr. Erickson pointed out that Denver's two main newspapers used the servers, routers, modems and phone lines they already had on hand to offer Internet service, as do several of the nation's banks. "If they have to have the equipment in their office anyway, they might as well offer Internet service," Mr. Erickson said.

It is the typical homespun Internet service provider, serving a thousand or so local customers from a small office filled with modems, that has it rough these days. "The pure dial-up I.S.P. play is tough to make money on because it's becoming such a commodity," Mr. Erickson said. "If you don't like your I.S.P., just go with another one."

Dane Jasper, a freckle-faced 27-year-old, his hair peppered with subtle highlights of pink and green, dropped out of the local junior college six years ago to start Sonic.net. Two years ago, Mr. Jasper said, Sonic.net belonged to a group of seven independent companies that called themselves the California Independently Owned I.S.P. Association. But one by one, those small companies have been acquired by larger providers, making Sonic.net the sole survivor, Mr. Jasper said.

"It's a minefield that we walk through," he added.

With 15,000 customers, Sonic.net is one of the bigger independent Web service providers. FIX Net, a seven-year-old provider in San Luis Obispo, Calif., has just 5,000 customers. And Downeast.net, a company in Ellsworth, Maine, is even smaller, with 1,000 customers. The companies have bolstered their businesses with commercial customers.

To compete effectively against the behemoths, small companies need to offer personalized customer service, said Cheryl Woodard, 28, the president, chief executive and chief financial officer at FIX Net. ("I sell popcorn at halftime, too," she said.)

Calls to FIX Net for technical support are not farmed out to a call center in Utah, Ireland or points beyond. Ms. Woodard said, "People can walk in the door and meet the technician who's been helping them."

Sonic.net is similar. Call tech support, and you are treated like royalty. Any of the 15 technicians, several of them still teenagers, focus on your problem with the single-mindedness of emergency room doctors rallying to someone who has been transported to the hospital by helicopter.

At FIX Net, Ms. Woodard offers free classes. Both FIX Net and Downeast.net invite customers to haul in their computers to have software installed at no charge. "We do an awful lot of hand-holding," said Don McKillop, who owns Downeast.net with his wife, Jean, and Noel Paul Stookey, of Peter, Paul and Mary.

At Sonic.net, Mr. Jasper makes the occasional house call. Still, Mr. Jasper said, it is hard to compete with the flood of advertising and sign-up rewards from the likes of AOL and Microsoft's MSN. "All the big players are spending hundreds of dollars to acquire new customers," he said. "So we just took a huge chunk of our advertising budget and started paying it to customers for referrals. Everyone who refers someone to us gets a $20 check in the mail."

Then there is the community aspect of a local service provider.

Go to FIX Net's home page, and you will see a grid of images depicting local scenes: the bell from the San Luis Obispo mission, the nearby coastline. The company's official slogan is "Worldwide Technology -- Hometown Service and Support."

Local ties are also important for Sopris Surfers, a Web service provider in Carbondale, Colo., 30 miles north of Aspen, with 5,000 customers. "People in our valley want to keep their money local," said Paul Huttenhower, chief executive of Sopris Surfers.

My favorite thing about Sonic.net is the sense I have that Mr. Jasper and his employees want to keep me informed about the technical goings-on behind the curtain.

I once used Sonic.net for full Web access, but now that I have that access through my job, I use Sonic.net mainly for personal e-mail. While Sonic.net offers regular e-mail service, I go online through my company's system and retrieve my Sonic.net e-mail via Telnet, a command-based method for logging into a computer remotely.

Local Internet providers offer classes, the occasional house call and friendly, jargon-filled messages.


When I log on at Sonic.net, I get an opening screen that is a diary of sorts, an intimate rundown of the week's technical ups and downs.

Such a greeting upon logging in is known in the Unix world as the Message of the Day, or M.O.T.D.

One typical M.O.T.D. from last month:

"The remote access equipment that serves the 522-1002 dial-up group blew a circuit breaker a half an hour ago as the load grew this morning.

Eli made it down to our NOC to redistribute the equipment across a second circuit and has restored all access. -- Kelsey"

And one from June:

"We've completed the migration to piggy; all multihomed websites are now load balanced and enjoy the reliability and performance of redundant web servers. -- Kelsey and Scott"

Whether or not you understand or even care about the technical jargon, the dispatches offer a glimpse into the vicissitudes and rhythms of a Web service provider, which can be difficult to imagine when you are on the other end of the line.

It can be argued that informing customers of the system's every hiccup will interest only a few technical junkies, that it is like sending a lengthy readout to the dashboard every time you start your car: "Last night's frost took the viscosity of the 10-40 oil to the upper ranges, increasing the load on the starter motor. The three-year-old battery did some extra work to turn the crankshaft."



Timothy Cook

But I would argue that the Sonic.net bulletins, typos and all, help keep people like me loyal. The M.O.T.D.'s make the machines seem like family. I know, for instance, Sonic.net's three Web servers are named Thunder, Mistral and Storm.

Further, I know that Mr. Jasper and his employees will tell it to me straight. Earlier this year, for instance, when demand for D.S.L. service increased, the Sonic.net staff was frank about installation delays:

"Pacific Bell appears to be overwhelmed by the response to the current promotion for D.S.L," they wrote. "If you have an installation scheduled with Pacific Bell for D.S.L., keep in mind that they may fail to arrive, or they may arrive very late in the day, in some cases as late as 9 p.m. -- Dane, Eli, Jen and Nicole"

Then, when the I Love You virus hit in May, staff members patted themselves on the back while issuing a reminder: "The filtering that we put in place for the I Love You virus caught over 1,200 copies of the virus and its mutations overnight. Just a reminder, always be cautious of unexpected e-mail attachments, especially executable programs or scripts. -- Kelsey"

And last month, this delightful recap of some late-night work: "Night operations are complete, and went well.

Kelsey and Scooter upgraded the news server to 1 gig of RAM, and it has been moved into a new cabinet location. The BroadLink guys moved their DSLAM into their dedicated rack here in the data center. Then we had doughnuts, but the BroadLink folks went missing before eating theirs, and we're not quite sure why.

-- Dane (and a bunch of sleepy ops)"

Who, I wondered as the message scrolled down and off my screen, are the BroadLink guys? Were they aggrieved somehow? And were the doughnuts Krispy Kremes? If so, where in town does one even find Krispy Kremes?

The M.O.T.D.'s are less readily accessible to Sonic.net customers who don't use Telnet. Those customers must either have the messages sent to them via e-mail or read them on the Sonic.net home page ( www.sonic.net). Mr. Jasper said that more than 700 people had the messages sent to them. Some even have the messages sent to their cell phones or pagers. "There's a bit of a cult following around the M.O.T.D.'s," he said.

Being a Sonic.net customer isn't very convenient for people who travel frequently because the local dial-up numbers are restricted to Northern California. But if I bailed out of this small, familiar place tomorrow and signed on with AOL, or AT&T Worldnet, I would miss more than just the M.O.T.D.'s. I would miss the satisfaction I get whenever I drive into town and pass the Sonic.net offices and imagine them in there: Dane, Kelsey, Scooter, Eli, Jen, Nicole and everyone else.

As I pass by, I think about what they might be doing at that moment. Perhaps they're talking someone through a connectivity meltdown, or installing a new router or migrating FTP data to the new NetApp F740.

And all's right with the world.


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Copyright 2000 by The New York Times Company, reprinted by permission.

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