KC nonprofit stops selling Internet services

Kansas City Business Journal - December 21, 2006

Community Resource Network, a nonprofit organization set up a dozen years ago to provide discounted Internet services to Kansas City's nonprofit community, no longer will sell Internet access and Web-hosting after this year.

CRN is exiting those business lines to focus on software development, Executive Director Ken Ortbals said Wednesday. To smooth the transition for the 250 nonprofits CRN serves, Kansas City-based Computers & Tele-Comm Inc. took all 13 of CRN's computer servers on Dec. 8 and already has started serving CRN's customers.

No money changed hands in the deal, in what amounted to CTC trading server space for CRN's ongoing business in exchange for providing a soft landing for CRN's soon-to-be-displaced Web-hosting clients.

CRN's clients include the Mid-America Regional Council and the Kansas City Symphony.

CTC co-owner Larry Levin said the company will assume CRN's Web-hosting contracts, which will cause it to operate at a loss until the customers choose to renew their deals. CTC hopes many customers choose to renew given that CTC is offering customers three-year contracts at CRN's historic rates.

CRN made about $300,000 a year in revenue from its Web-hosting business, Levin said.

Ortbals said all the customers are free to choose other providers.

The decision to exit the business was based on CRN's difficulty competing with private-sector giants such as Time Warner Cable and AT&T Inc., he said.

The change in direction will cause CRN to lower its budget from $900,000 this year to $500,000 next year and its staff from eight to four. CTC already has hired one CRN employee whose job was cut, Ortbals said.