DSL.net scales back operations

DSL provider DSL.net has revealed plans to cut 90 employees and 250 central offices in an effort to conserve cash.

The company has become the latest in a litany of DSL providers that are rolling back their operations as cash reserves run low. Earlier this month Rhythms NetConnections announced it would be cutting central offices in nine markets.

DSL.net's central office reduction should affect less than 5 percent of its customers, which are mostly small and midsize businesses.

Company officials say the cost-cutting moves would allow the firm to reduce the amount of cash it loses each month to less than US$4 million by the fourth quarter of 2001. They added that the company required less than $40 million of new capital to become cash flow positive.

DSL.net provides symmetrical DSL service in more than 375 cities. As of March 31, 2001, the company had more than 16,000 DSL lines installed and company officials say they expect that number to increase to between 25,000 and 28,000 lines by year-end.

In the first quarter of this year, DSL.net posted a net loss of more than $26 million.

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