Provider of telecommunication services, including voice, data and Internet access, primarily to small- and medium-sized businesses in California and Nevada. Founded 1998. (Los Angeles)

Growth rate

235%

Executive:

Dick Jalkut, chief executive and president

Early Days/Financing:

I joined the company in 2002, four years after it was founded. I sat on the board of Investcorp which is one of the three primary sponsors of the company. The other two are Clarity Partners and GE Capital. From 1998 to 2002 this company had not grown much and I was asked to take it over and put together a strategy to grow the business. I have a great deal of experience in the telecom industry and was previously chief executive of the New York Telephone Co.

Big Break:

We put together a successful plan to become more value oriented by focusing on customer service. We strive to give our customers, small- and medium-size businesses in California and Nevada, the best telecom experience they have ever had. Our team became very encouraged by the success we were able to have by giving customers a very positive experience. Establishing that brand and backing it up was our big break.

Biggest Challenge:

Competition is always the biggest challenge. As we have gotten more successful, AT & T; and Verizon have tried to compete with us on price. We have to avoid the temptation of essentially becoming a commodity broker. Also, we have acquired five companies in the past five years and while we have successfully integrated those companies and their culture, it is a very time-consuming process.

Secret of Success:

We love being in California. It is a real hot market for small- and medium-size businesses. And unlike other parts of the country where there is no growth or negative growth, we see unlimited potential throughout the whole state because California is such a popular place to start businesses.

What’s Next:

We continue to look for opportunities to buy other telecom providers in California and Nevada on a cost-efficient basis. At some point in the future, maybe in 2008 or 2009, we will do an IPO assuming the company continues to do well and the markets are ready.