Concentric Network Files for Competitive Local Exchange Carrier (CLEC) Status
CLEC Filing Will Allow Concentric to Provide Local Transmission and Switching Services, Enabling the Company to Offer New Services To Small-and Medium-Sized Businesses
SAN JOSE, Calif., Dec. 13 /PRNewswire/ -- Concentric Network Corp. (Nasdaq: CNCX - news), a leading provider of e-business solutions for growing companies, today announced that Concentric is in the process of filing to become a CLEC in all 50 states. To date, Concentric has already received certificates of authority to transact business in 17 states, including Alabama, Arkansas, California, Colorado, Connecticut, Georgia, Kentucky, Louisiana, Montana, Missouri, New Jersey, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas and Wyoming. This CLEC status will give the company the option to offer it's own facilities-based services for offerings like DSL, although a final decision to become facilities based has not been made yet. Equally important and of immediate impact, CLEC status will allow Concentric to resell existing ILEC services and to purchase ILEC transport services at wholesale rates under its newly acquired status as a common carrier.
''We have been evaluating the opportunity to be a CLEC for quite some time,'' said Henry R. Nothhaft, chairman, president and CEO of Concentric Network. ''We see this as a key way to reduce our network costs and augment our existing relationships with various DSL providers. Moreover, this move will enable us to offer new services to our small- and mid-sized business customers.''
Concentric expects the two-fold process of obtaining state approvals for CLEC status, and the completion of Interconnect agreement negotiations with the various ILECS, to be completed by the end of 2000. ''Once we become a CLEC, we can provide more robust communications services to our customers and more directly control the infrastructure over which these services are delivered. Ultimately this offers Concentric greater control and accountability, enabling us to deliver the highest quality of service possible,'' noted Nothhaft.
About Concentric Network Corporation
Concentric Network Corporation provides complete Internet business solutions for small- and medium-sized enterprises, including DSL access, Web hosting and e-commerce. The company also offers data center services, virtual private networks, dedicated access, and application infrastructure services for delivering applications over the Internet or a VPN. Concentric's services are offered through a nationwide network of data centers and a private, nationwide ATM network. All Concentric services are backed by 24/7 customer care and most include service level agreements. Publicly traded. Concentric is headquartered in San Jose, CA with operations in Irvine, CA, Chicago, IL, St. Louis, MO, and Saginaw, MI. For more information, visit concentric.net or contact Public Relations at publicrelations@concentric.com.
Concentric has reached an agreement to acquire Internet Technology Group plc (AIM: ITH.L), a leading provider of Internet access and hosting for businesses in the UK. The acquisition is subject to Internet Technology Group shareholder, court and regulatory approvals and is currently expected to close in the fourth quarter of 1999.
This press release contains forward-looking statements regarding Concentric's proposed acquisition of Internet Technology Group plc (ITG), and the potential benefits to be realized by the combined groups, including but not limited to expansion of Internet services into Europe, that are subject to risks and uncertainties. Actual results may differ materially from those described in the forward-looking statements as a result of a number of factors, including the requirement for Internet Technology Group stockholder, court and regulatory approval, and the ability of the combined groups to successfully integrate and expand their service offerings.
NOTE: Concentric Network Corporation and the Concentric logo are registered trademarks. All other trademarks are the property of their respective owners.
SOURCE: Concentric Network Corp. |
