LAS VEGAS Cendant Corp. may soon have a new high-speed Internet provider.
The franchise company had signed CAIS Internet as the provider with first dibs on approaching its franchisees to provide the service. However, CAIS as well as others providing high-speed Internet services, had found that its business model of providing the service free to hotels instead of on a revenue-sharing basis did not work.
As a result, CAIS recently ceased hotel installations and in fact, had said it was no longer focusing on the hospitality business, leaving many Cendant hotels with which it had signed without an Internet provider.
While not commenting directly on the matter, Steve Belmonte, president/CEO of Ramada Franchise Systems, a Cendant-owned brand, noted that high-speed Internet installations for the industry has been a disaster.
However, Belmonte hinted that Cendant had been seeking to resolve the issue, and said, there will be be some very positive announcements in the very near future for high-speed Internet. (5/23/01) Ruthanne Terrero