Can AGIS Make A Comeback Under New Management?

Telia AB, which recently filed for an IPO, was AGIS' largest customer when it purchased the beleaguered ISP in April at auction for $30.5 million. By some accounts, the Swedish ISP is the largest transporter of IP services from Europe to North America.

In addition to mobile data and its traditional telecommunications, Telia sells a full range of IP services. The carrier is currently completing its own pan-European IP carrier network. AGIS will bring to Telia a full set of Tier 1 peering arrangements in the United States.

Telia executives declined to talk about AGIS, citing SEC restrictions. The carrier issued only a brief press release in April after the acquisition.

But sources familiar with Telia's plans for AGIS say Telia will spend up to the next six months upgrading the AGIS network, which will include the addition of new core routers made by Juniper Networks, which claims 99.999 percent reliability.

Larry Scudder, AGIS' new CEO, would only say his mandate is to make AGIS the most reliable network anywhere. "We believe there are others in the industry who could benefit from peering relationships with AGIS," says Scudder, a former executive at United Global Communications, a Denver cable company.

Whether the AGIS name stays or goes will be decided within the next six months, the sources say. AGIS also expects to have up to 120 employees by August. The company's strategy is to offer DSL, wireless services and cable services. It is also seeking some strategic partners.

Scudder says the original idea behind AGIS was sound, and the existing network will give the carrier a foundation to build on for the future.

"We have an owner that understands our business and provides us with the financial resources we need to meet anticipated growth in the IP business in the reasonable future," Scudder says. "Telia's interest in AGIS is long term."

AGIS: 1994-2000_

JUNE 1994:
AGIS is founded by Philip Lawlor.

SEPTEMBER 1998:
AGIS cuts off spammer Sanford Wallace and his company, Cyber Promotions, from its network.

JANUARY 1998:
Qwest makes 10,000 miles of fiber available to AGIS in exchange for a 20 percent equity stake and a $260 million investment.

FEBRUARY 1999:
Alan Adams is hired as CEO.

JULY 1999:
AGIS prepares for IPO, drops its plans by October.

FEBRUARY-MARCH 2000:
Adams is fired. Lawlor returns as CEO.

APRIL 2000:
Sweden's Telia buys AGIS for $30.5 million.

Lessons To Be Learned_