Looks like the Burlington School District, their 2nd biggest client, is switching Internet providers. Vermont Telephone offered a better deal.
UPDATE: Richard Donnelly, BT's Sales & Marketing Manager, responds via email:
The Free Press article gives the impression that Burlington Telecom “lost” a major customer when the School System changed its Internet supplier from BT to Vermont Telephone (VTel) . Nothing could be further from the truth.
BT provides the high-speed fiber connections that “power” the school telecom and information system. It also provides the voice telephone system. It will continue to do both.
In addition to the above services, BT has, in the past, purchased Internet Bandwidth from VTel and resold it, at no profit, to the Schools. However, VTel has decided to provide a special offer directly to schools around the state—and offer well below what it charges to normal residential and business customers (including BT). This heavily discounted Internet Bandwidth will still be transported to the Schools over BT’s fiber network.
Since BT never made any money on the Internet Bandwidth which it simply passed through to the Schools, it loses nothing by the switch. The Schools, however, gain a great deal.