Some two-thirds of OnSite's staff has also been cut, lowering the total base to 80 people. Nevertheless, according to a company spokesperson, "this is not about our business model, but rather, it's about the condition of the broadband industry." Late last year, in a special report, GlobeSt.com predicted that that condition would worsen before it got better, noting the increasingly tight fiscal times these companies were facing. Ironically, one of the experts quoted in that story was from OnSite Access.
For the story, click on: Telecoms Will Be the Next Big Consolidation Market-and Building Owners Can Only Gain
A merger or buyout now seems to be OnSite's last ray of hope, as a source explained in an exclusive interview. The hope is "that a third party would buy them, merge with them or run them independently," the contact says. "In that case, the customers will be fine. The only fear is that, if none of these things happen, they'll just shut their doors, like BroadBand Office." Several possible buyers are eyeing the operation's assets.
In the meantime, the source confirmed, customers are "freaking out, but this actually could be good if OnSite emerges as a stronger, bigger provider." If not, and customers are dropped, they would be given 30 days notice.
Not surprisingly, the official word at OnSite does provide a much more positive spin than shutting doors and dropping customers. "Chapter 11 offers the company the opportunity to restructure its affairs and consider proposals to facilitate this process," reads a prepared statement. "OnSite has received expressions of interest from several third parties. We are also maintaining all service to our customers."
The filing is not expected to effect OnSite's Canadian operation, which was created in joint venture with Oxford Properties, explains the company spokesperson.
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John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
