Sitestar Purchases Broadband DSL Accounts From USA Telephone

Sitestar, a provider of internet access, web hosting and value-added services, has purchased certain broadband digital subscriber line accounts and related assets from USA Telephone.

In 2007, Sitestar closed a deal with the Maine-based Competitive Local Exchange Carrier in which it acquired nearly 40,000 dial-up subscribers sold and marketed under the Nationwide Internet, InReach Internet and DFW Internet brands.

This transaction increases Sitestar’s broadband base and supports the company’s strategy of diversifying its customer portfolio to facilitate sustained revenue growth.

Frank Erhartic, Jr, CEO for Sitestar, said: “We are delighted that we could leverage our existing business relationship with USA Telephone to acquire additional customers. Sitestar has earned a reputation of being able to successfully acquire, integrate and support a myriad of ISP access and web hosting customers. DSL (digital subscriber line) service is typically more immune to churn than dial-up and, for this customer base; we can achieve very attractive margins by utilizing our existing infrastructure and favorable supplier partnerships.”