January 24, 2001, 4:57 PM — ROSEMONT, ILL. -- Technology services provider Comdisco this week announced that it is getting out of the DSL business by folding its New York City Prism Communication Services business unit.
Prism has approximately 2,000 customers in 15 cities, with the majority residing in Manhattan, Philadelphia and New Jersey. Most of Prism's client base is small business.
Prism will continue to provide service to its existing customers and hopes to transition them over to new service providers by year-end, Prism spokesperson Kevin Petschow says.
Comdisco officials say problems in the DSL industry, such as slow loop provisioning and low DSL service pricing, were what convinced the company to review its investment in Prism.
Comdisco acquired Prism in March, 1999 with the intention of using Prism to roll DSL out to Comdisco's corporate customers across the U.S., while continuing to grow Prism's existing customer base of small business users.
As of September 30, Prism had a book value of $375 million.