What started as a one-time, no-cost contract between Fiber Optics and a company called FiberStars has now ballooned to over $1 billion, according to the company.
And the company is blaming a number of factors: a slowdown in sales, a decline in its ability to produce fiber optic products, and an increase in competition.
“We were not able to sustain the level of service we provided the Fiber Opticians, the Fiber Stars and other customers,” Fiber Optica spokesperson Kristin Foy said in a statement.
“FiberStar is a small company that’s growing at an exponential rate and is very much focused on delivering better services to customers.”
Fiber Optias CEO, Chris Sorensen, said he believes the company’s current struggles stem from the fact that customers aren’t getting as much service as they could be.
“Our business is not as strong as it could be because of the inability to deliver quality service,” he said.
“This is the reason we are not able have the type of business we need to survive.”
The company says it is working on a plan to fix the problems it identified, but said it will have to wait until the end of 2017 before it can be sure the problems have been addressed.
Fiber OptiCare, the company that helps people find and buy fiber optic equipment, said it has been in contact with the Fiber Star management team to see if the company can make any progress.
“As we understand this is not an uncommon situation, we are in communication with FiberStar management to determine what actions we can take to address this issue,” the company said in an email.
“In the meantime, we encourage everyone to get on the fiber optic network as soon as possible to reduce their exposure to this type of service disruption.”