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The Black Box
P.O. Box 591822
Houston, TX
77259-1822

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Paper: HOUSTON CHRONICLE
Date: FRI 09/16/94
Section: BUSINESS
Page: 1

Internet gatekeepers swamped/Phones are ringing off the wall for access services

By DWIGHT SILVERMAN
Staff

Marc Newman's phone rang at 3 a.m., rousing the hobbyist provider of Internet access from a sound sleep.

It was a customer wanting to merge onto the information superhighway. Despite the time, a groggy Newman signed him up.

"I think the guy expected an answering machine," said Newman , who during his waking hours helps manage the computer system at Baylor College of Medicine. "He was surprised to actually get me."

Black Box Internet access service is one of several local companies struggling with increasing demand from companies and individuals who want to plug into the growing collection of computer networks known as the Internet.

The promise of electronic commerce, along with a nonstop onslaught of publicity surrounding the Internet, has brought hundreds of new customers to these small operations.

As a result, these companies have grown dramatically, as has the Internet itself.

But it's not all been gravy.

At times, growing pains have brought some of the operations to their technical knees, resulting in outages and busy signals when customers try to dial up and log on.

Users' frustrations with access problems have inspired two established computer consulting firms and another small start-up to begin offering Internet access.

There are at least six local Internet providers in Houston:

Newman's Black Box remains a hobby for him, though he's expanded both in terms of users and equipment. He won't say how many accounts he has.

Hudson-Trinity, a computing consulting firm that has worked with the companies servicing NASA's Johnson Space Center since 1988. Owner Evelyn Klusmeyer entered the local Internet market in August, and the company has fewer than 100 accounts.

Neosoft has more than 2,200 accounts on its system. Owners Karl Lehenbauer and Ellyn Jones took the company from a small computer consulting firm that happened to run a computer bulletin board to the largest local Internet provider in the city.

Phoenix Data Systems, another NASA-area consulting firm, also has jumped into the market. Owned by Billie C. Holbert Jr., the 10-year-old business has been selling Internet access since July. Company officials won't say how many accounts they have.

South Coast Computing Services, also a consulting firm-turned-provider, has about 350 accounts and has moved from a tiny storefront into larger, more corporate offices. Steve and Elizabeth Nuchia have expanded South Coast's Internet access from a sideline to the biggest part of their business.

USIS - the acronym stands for either U.S. Information Superhighway or U.S. Internet Services, depending on which staff member is talking - is a start-up business that opened across the street from Neosoft. Owned by a parent company called National Business Development, USIS has about 70 accounts.

The local companies also compete with some out-of-town providers - such as Delphi, CRL and PSI - and others are reported to be eyeing the Houston market.

Two local businesses that were providing Internet services earlier this year have disappeared from the radar. Now On-Line went off-line last spring, and National Videotex Network shut down and its parent company, U.S. Videotel, filed for Chapter 7 bankruptcy in July.

The Internet's status as a trendy topic has lured many novices to seek access. That's increased the demand for hand-holding from technical support staffs at the established providers, as well as put an increased load on their machines.

"The thing that is the hardest is trying to handle all the customer support the way we would like it to be done," Neosoft's Jones said. "It's very hard to keep up with. Folks really want someone on the end of the phone."

When the computers at the providers go down, the phones light up. But often the problem is in the users' machines. Newcomers to the Internet often can't tell the difference, the providers say.

"More than 50 percent of the calls we get are user problems," said Lehenbauer, Jones' husband and business partner. "But we have to be obligated by the fact that we are in the business of service to make it work."

The load of so many callers on the machines has caused the two largest companies, Neosoft and South Coast Computing, to have busy signals and occasional outages. Both providers say their downtime has lessened in recent weeks, with new equipment and more phone lines.

"Most customers have been very patient with our growing pains, and believe me, we have abused their patience," said South Coast owner Stephen Nuchia.

Reprinted from the Houston Chronicle (www.houstonchronicle.com)

Last Updated: June 10, 1998
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