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February 05, 2002

A Dial Up Deal
Internet service rings up Daytona

By THOMAS S. BROWN (tom.brown@news-jrnl.com)
Business Writer Daytona Beach News Journal

DAYTONA BEACH -- A new Internet service provider linked with a Denver-based telecommunications giant hopes to make waves in the Daytona Beach market by offering residential dial-up service for just $6.95 a month.

695online.com, is kicking off a marketing drive this week, aiming for Internet surfers who would be content with medium-speed service at a bargain price.

The company is offering dial-up connections in the Daytona Beach and DeLand areas that will transmit data at speeds of up to 56,000 bytes per second. A test of its service last week showed actual connection speeds tended to be in the 28,000-32,000 range -- similar to dial-up speeds offered by America Online, BellSouth and other providers.

"We think we'll be popular with students, the elderly and other people who want something affordable," said Robert Craddock, marketing director for 695online.com. "In a year, we think we could have 30 to 35 percent of the market."

Most dial-up service in the Volusia-Flagler area is currently priced in the $15-$24 range, with market leader AOL at the top of the heap. AOL also offers a "light use" plan for $4.95 a month, but that covers just three hours a month; each additional hour costs $2.50. In contrast, 695's plan is for Nationwide use.

The Daytona Beach launch is a market test that eventually could expand to other parts of Florida or even go national, Craddock said.

695 is hoping to distinguish itself from other bread-and-butter providers by offering an optional feature it calls Mail-Block. The technology shields users from bulk e-mail generators who are unwilling to divulge their identity to mail recipients, Craddock said.

The spam-blocking feature will be provided free to the first 100,000 subscribers, Craddock said. After that, it will sell as an add-on for about $2 a month.

Craddock's company, which started out as a Web site design and marketing firm, is getting into the Internet provider business by leasing fiber optic transmission service from Denver-based Qwest Communications International, which has rights to fiber optic lines along the Florida East Coast Railroad. Lianne Seltzer, a Qwest account executive, said her company has been working with Craddock since June to start the new service. 695 is sharing switching equipment with KMC Telecom in Holly Hill, which allows it access to the fiber.

Craddock said 695's five-person staff has set up temporary shop at 435 S. Ridgewood Ave.

He estimates the staff will grow to 70 by the end of the year. To accommodate them, he's searching for an 8,000-square-foot office to lease.

"This will be good for the economy," he said. "Many of these jobs will be averaging $60,000 a year." He said the company is seeking programmers, Web designers, customer service representatives and others.

Craddock said 695's infrastructure has enough capacity that users should not experience any problems with busy signals or disconnects.

"We have five servers and each one can handle 20,000 calls at a time, so in theory we could have 100,000 people in Daytona dialing in simultaneously without any problem," he said.

The company hopes to offer a toll-free local dial-up number for the New Smyrna Beach area within a month. For now, it has no plans to offer service in Flagler County.

"It all depends on the numbers," he said. "If we got 2,000 e-mails in a week from Flagler County asking for the service, then we might be able to offer it," he said.

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