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Americas Issue: June 2006
Dave Schaeffer
Founder and CEO, Cogent Communications
by Ted McKenna
Internet service provider Cogent Communications is based in Washington D.C., mainly because its founder and chief executive was born and raised in the D.C., area. But does the company gain an advantage being close to regulatory decisionmakers, whose 1996 Telecom Act opened up the industry to competition?
“We’re not a CLEC. We really operate as an ‘enhanced service provider,’ as defined by the FCC, so we’re exempt from state and federal regulation,” Cogent CEO Dave Schaeffer says. “Companies end up in places for a lot of reasons, but probably the most common one is that the guys who started them just happened to live there.”
Yet Cogent has benefited in general from the aftermath of deregulation. Cogent’s recent acquisitions, following the boom and bust of the competitive carrier market, include three of the original eight network backbone operators created after the privatization of the Internet by the U.S. Defense Advanced Research Projects Agency.
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