New Edge Networks

New Edge Networks, founded in 1999 by Dan Moffat, carved a niche in the telecommunications sector by providing private, managed Wide Area Networks (WANs) for businesses across the United States. Moffat, who served as President and CEO, brought over two decades of telecom experience from roles at TimeNet, PacTel, and US West to the venture. The company specialized in building secure, IP-based networks using Multi-Protocol Label Switching (MPLS) technology, which operated independently of the public internet. This provided clients with guaranteed performance and enhanced security for their multi-site data connections.

The company's business model focused on delivering network connectivity services to small and medium-sized enterprises (SMEs), including those in semi-rural markets often underserved by larger carriers. New Edge Networks offered a flexible blend of access technologies, allowing businesses to connect their locations using the best available options, from DSL and T1 lines to fiber-optic connections. A key part of its value proposition was providing managed network services and network-based VPNs that supported crucial business functions like point-of-sale (POS) transactions and inventory control. For retailers and restaurants, the company offered direct, high-speed connections to payment processors, significantly speeding up transaction times compared to dial-up.

After its founding, New Edge Networks secured significant venture funding, raising a total of $102 million over two rounds from investors including Accel, Crosspoint Venture Partners, Goldman Sachs, and Intel Capital. This capital fueled its growth and network expansion. A major milestone occurred in December 2005 when EarthLink announced its agreement to acquire New Edge Networks for approximately $144 million in cash and stock. The acquisition, completed in 2006, was a strategic move by EarthLink to penetrate the SME market and leverage New Edge's robust data communications network. Following the acquisition, New Edge Networks continued to operate as a wholly-owned subsidiary under its own brand from its headquarters in Vancouver, Washington, with Dan Moffat remaining as president.

Keywords: New Edge Networks, managed network services, private WAN, MPLS networks, Dan Moffat, EarthLink acquisition, SME connectivity, secure data networks, VPN services, T1 access, DSL access, fiber optic connectivity, point-of-sale networks, retail network solutions, telecom infrastructure, virtual private networks, multi-site connectivity, business broadband, network security, managed VPN