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The Kelsey Report® Advisory

RHD Closes Get Digital Smart
Charles Laughlin , 12/11/2000

Issue: Is GDS Demise a Blow to the ASP Model?

News:  R.H. Donnelley (RHD) announced that, barring a sale, it will discontinue its Get Digital Smart (GDS) operation by the end of the year. The company anticipates a $3 million charge for closing down the operation, which was testing a stand-alone sales model in South Florida that, if successful, might have exercised considerable influence throughout the online Yellow Pages field. Instead, the effort now emerges as a cautionary tale about the difficulty of building a scale business out of fragmented local markets and the willingness of small businesses to invest significant dollars in creating an active Web presence.

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