More news from INNF:
Innofone.Com Sells its Shares of Canadian Telecommunications Resellers Alliance
(CTRA) to Optel Communications
TORONTO--(BUSINESS WIRE)--July 6, 1999--Innofone.Com Incorpo(OTC BulletinBoard:INNF - news) Innofone.Com, Incorporated (OTCBB - Symbol:INNF) today announced that it has sold its 12.5 per cent ownership of the Canadian Telecommunications Resellers Alliance (CTRA) to Optel Communications Corporation in exchange for share options.
Effective immediately, Optel has acquired 100 per cent of the CTRA.
''CTRA has recognized an important need in the marketplace by offering substantial long distance wholesale savings to small and medium sized communications service providers,'' said David Kington, vice-president, business development, Optel Communications. ''With this acquisition, Optel can now offer wholesale long-distance services to a large base of long-distance resellers. In addition, Optel will offer even more affordable costs when we transfer these services to Optel's soon-to-be-launched proprietary CLEC (Competitive Local Exchange Carrier) network.'' Innofone's long distance service contract with the CTRA is directly transferred to Optel ensuring that Innofone continues to purchase its long distance traffic at savings of as much as 34 percent over alternative suppliers. ''This deal is a tremendous opportunity for Innofone,'' said Larry Hunt, president of Innofone.Com. ''Through this transaction we receive part of a promising new Canadian CLEC, and Innofone continues to receive competitive wholesale rates enhanced by Optel's experienced team of customer service professionals. Even more exciting is the fact that when Optel launches its new network later this year, the industry and Innofone will realize additional savings on wholesale long distance rates. '' With annualized revenues of approximately $2 million, CTRA is a long-distance minutes wholesaler for small and medium sized telecommunications resellers. CTRA purchases bulk traffic from the major telecommunications carriers at substantially reduced costs, and then resells to its members at prices which would not otherwise be available to small and medium-sized communications service providers (CSPs) based on their individual volumes. In addition to substantial cost savings, CTRA provides CSPs with instant access to a wide variety of suppliers, additional products, dedicated customer support and a flexible billing interface for all services. About Optel communications Optel Communications Corporation, is one of Canada's largest alternative local line telephone companies. Since 1995, Optel has provided significant cost savings to small- and medium-sized businesses on local and long distance phone services. Optel has announced plans to launch proprietary Competitive Local Exchange Carrier (CLEC) networks in Toronto and Montreal in the summer of 1999,
and currently operates by purchasing local services in volume and passing on savings of 15 - 35 per cent to its Innofone.Com Sells its Shares of Canadian Telecommunications Resellers Alliance (CTRA) to Optel Communications page 2 customers. A Canadian-controlled private company, Optel has offices and an established agent network
in Ontario and Quebec. Optel has demonstrated continued growth since its inception with a current employee base of 270, annualized revenues approaching $43 million and over 70,000 lines sold. For additional information visit optel.ca. About Innofone.Com,
Incorporated Innofone markets traditional long distance telephone services to residential, small and medium sized businesses and the small office/home office (SOHO) market, offering its Guaranteed Lowest Rate Calling program GLR(tm). Utilizing its billing software, Innofone analyzes its customers' phone bills each month against the rates of the three leading long distance service providers in Canada: Sprint Canada, a division of CallNet (Nasdaq: CNEBS - news), Bell Canada (Nasdaq: BCICF - news) and AT&T (NYSE: T - news). Innofone is not affiliated with Sprint Canada, Bell Canada or AT&T.) The GLR(tm)
program is a powerful tool that Innofone uses both to keep customers from switching long distance service and to market to new customers looking for lowest rates. Innofone offers state-of-the-art voice, VOIP, fax and data services over its Fully Integrated Worldwide
Network facilities, the company also offers wholesale ITSP services to other Canadian and US Telecommunications companies. Innofone's product line includes a portfolio of state-of-the-art ''virtual office'' products geared to the growing business/home office market
which allows commercial users to consolidate voice and data into a single network with substantial savings. For additional information visit Innofone's World Wide Web Site at innofone.com Certain statements in this press release may constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the company to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. |
