RCN selling data service in Center City

RCN Corp., the Herndon, Va., cable and telecommunications company, says it has installed eight miles of high-capacity fiber-optic cable in Center City to sell data service to financial-services firms, big companies and institutions.

It is the first big advance into Philadelphia since the company emerged from bankruptcy protection in December 2004. RCN had tried earlier this decade to enter the Philadelphia market with its TV services and compete with Comcast Corp., but it could not reach an agreement with the city government. This time, RCN is competing for business customers with Verizon Communications Inc.

RCN says it has targeted 250 city buildings within about 100 yards of the fiber-optic-cable loop in the Center City business district.

"We're not the cheapest out there. We don't compete on price. We compete on value," said Felipe Alvarez, president of RCN Metro Optical Networks, the company's business-services division.

The company offers business data services in Boston, New York, Washington, Chicago, and some smaller cities. RCN had about $700 million in revenue in 2007, with 25 percent from commercial services.

RCN has financial-services customers in New York City, Alvarez said, and it hopes to sell to the same types of companies in Philadelphia.

RCN offers residential TV, Internet and phone services to about 100,000 homes in Delaware County and 200,000 homes in the Allentown area.