123Net

is a provider of voice and data products located in Southfield, MI. The company is a CLEC (Competitive Local Exchange Carrier) as well as a WISP (Wireless Internet Service Provider), Data Center and Telephone Company.
History
123.Net Inc. (formerly known as Internet 123 Inc.) was originally started for the purposes of Dial-up Internet access and as a general ISP (Internet Service Provider) in the year 1995. The business model was based around offering basic internet connectivity to rural areas that did not have local (non toll) dial in numbers from companies such as America Online, Prodigy and other popular providers of the era.
Transition from Linux System Labs
In 1995, Dan Irvin, a Michigan entrepreneur and owner of Linux System Labs Inc., started 123Net (known then as Internet 123 Inc.) for the purpose of delivering dial up services to residents throughout Michigan.
At the time, Irvin's company was a publisher of Linux guides and CD-ROM discs that were sold through outlets such as Barnes and Noble, Borders and later on Amazon.com. The company's website (www.lsl.com) also used at one time to distribute Linux and related materials is now used as a redirection to "Live Sex Links".
As the Internet became faster and more prevalent throughout the mid to late 90's, the preferred method of delivery for Linux shifted away from paid postage CD-ROM to Internet downloads. Linux System Labs faced an important choice as the digital divide heavily reduced the potential revenue for selling CD's that were now available faster and for zero cost over the Internet.
Data Center Number One (DC1)
123Net greatly benefited by the dot-com bubble of the late 1990's into early 2000's as providers spent billions of dollars in a wall street fueled frenzy to build new state of the art data centers and delivery methods. 123Net's first data center was engineered and built by MCI Worldcom for long distance telephone competition with ATT. The facility of about 4,000 sq ft. was vacated during the companies bankruptcy in the year 2000 and the lease assumed by 123Net. The center, now referred to by 123Net as DC1 is still in operation today and is currently awaiting renovation as a carrier hotel for fiber transport and other services.
Establishment of CLEC Status in Michigan
123Net became a state licensed CLEC capable of selling local and long distance phone services in the year 1999, three years after the passage of the Telecommunications Act of 1996. The act served as a major overhaul of regulatory procedures in the telecommunications industry (which among other things) allowed for third party companies to access the facilities of Incumbent Local Exchange Carriers (known as ILEC's).
The primary products of early 123Net offerings became the Data T1, Voice T1 (also known as PRI) and also an assortment of Channelized (voice and data combined) products for businesses. The company also began building a fiber network to connect many exchanges throughout Michigan so that lower cost alternatives could be provided. Many areas, formerly held as monopolies by ILECs such as ATT, Ameritech and Verizon now became grounds for competition, creating downward pressure on the pricing of telephone and internet services.
Move towards Facilities Based Provider
In 2001, 123Net began offering smaller communications companies the ability to take advantage of the excess capacity available in DC1. The facility had recently become the Detroit Area Point of Presence for Cogent Communications as well as housing a 10G connection to Level 3. This capacity was highly sought after by managed hosting providers, ISPs and many other businesses of both local and national scale.
123Net also began offering other unique products designed to allow companies the ability to locate equipment at the data center and use the private "loops" from ILEC providers to access the equipment remotely. This ability has since been expanded into the entire 123Net product portfolio and is the basis behind the recent push towards "cloud" computing.
Data Center Expansions and New Corporate Headquarters
DC2
In 2002, 123Net purchased an 8000 sq ft. office building on Northwestern Highway in Southfield, MI. Most of the building was re-engineered as a data center (now known as DC2) houses most of the 123Net corporate function as well as various other related businesses and customers. As of November 2011 the facilities (including data centers and office space) were at 100% occupancy.
DC3
In 2008, 123Net purchased a nearly identical office building directly next door to DC2, this later became known as DC3. DC3 is a newer and more energy efficient "Hot Aisle, Cold Aisle" design engineered to save utilities and maximize energy use. DC3 unofficially opened in August 2011 and is currently scheduled to have an official grand opening sometime in Q1 2012.
Acquisitions
123Net has acquired assets of or in some cases entire companies as it continues to grow and expand it's footprint throughout Michigan. Some of the notable deals include:
* 2020 Communications (Wireless Assets)
* Zing Network and Zing LLC (Wireless Assets)
* Waypoint Fiber Networks
* Waypoint Communications
* West Michigan Internet Services (WMIS)
List of References
<references />

Main Menu

See Also

Main Menu