California Public Utilities Commission Reaffirms Previous Ruling
in Dispute Between Competitive Carriers and Pacific Bell
Business Editors
ENGLEWOOD, Colo.--(BUSINESS WIRE)--July 27, 1999 --
CPUC Says ISP Calls are Local and Subject to Reciprocal
Compensation Under Current Interconnection Agreements
The California Public Utilities Commission (CPUC) ruled Monday
that Pacific Bell, an incumbent local exchange carrier (ILEC) in
California, must pay competitive local exchange carriers (CLEC),
including ICG Communications, Inc., for terminating local calls to
Internet Service Providers (ISPs), upholding current interconnection
agreements.
In ruling that calls to ISPs are considered local for the
purposes of reciprocal compensation, the CPUC ordered the ILECs to pay
monies owed to competitive local carriers, including ICG.
Additionally, the decision denies the requests of Pacific Bell and
GTE, the other incumbent monopoly telephone carrier in California, for
a rehearing of the CPUC's October 1998 decision.
"The California PUC has upheld its decision forcing incumbent
carriers to comply with the interconnection agreements they signed
with competitors. The decision remains consistent with the ruling made
by the FCC in February," said Cindy Schonhaut, executive vice
president for government and corporate affairs for ICG. "This
California commission ruling is another indication that the incumbent
monopolies' stubborn refusal to pay reciprocal compensation for ISP
calls will not hinder progress in competitive telecommunications.
In fact, competition will thrive in spite of monopoly tactics."
ICG, a competitive local telecommunications provider based in
Englewood, Colo., and other CLECs have been embroiled in regulatory
and legal proceedings with ILECs over the reciprocal compensation
issue for more than two years. The California ruling mirrors decisions
made by 29 other state regulatory agencies, a number of judicial
bodies and the FCC. Additionally, the favorable ruling clears an
important point in the regulatory process and paves the way for ICG to
receive payment from the ILEC. Recently, ICG received payment of
reciprocal compensation for calls to ISPs served by ICG from ILECs in
Ohio and Texas, based on favorable regulatory decisions issued in late
1998 and 1999.
Monday's decision modifies the CPUC's October 1998 decision
stating that calls to ISPs were local and subject to reciprocal
compensation under interconnection agreements signed by competitive
carriers and Pacific Bell. By modifying the decision, the CPUC
strengthened the legal reasoning of the original decision, using the
rationale of the FCC's February 1999 ruling. In that decision, the FCC
held that ISP traffic is jurisdictionally interstate, but that, in the
absence of final federal rules on compensation, state commissions are
free to decide that reciprocal compensation is still due for ISP
traffic.
About ICG Communications
With headquarters in Englewood, Colo., ICG Communications, Inc.
(NASDAQ: ICGX) is a competitive telecommunications provider of
high-quality, integrated communications solutions. ICG offers local,
long distance and enhanced telephony, and data communications to
small- and medium-sized businesses in California, Colorado, Ohio,
Texas and the southeastern United States. The company also provides
high-speed data network capabilities and services to Internet service
providers throughout the U.S., using ICG's nationwide network. Through
other subsidiary operations, ICG designs and installs copper, fiber
and wireless infrastructure for buildings and campuses; and offers
international satellite voice and data services. For further
information on ICG, visit the company's web site at
icgcom.com.
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CONTACT: ICG Communications
Media Contact:
Lance Thomas
303/414-5411
lance_thomas@icgcom.com
or
Investor Contact:
Steve Smith
303/414-5350
investor_relations@icgcom.com
KEYWORD: COLORADO CALIFORNIA OHIO TEXAS
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS TELECOMMUNICATIONS
INTERACTIVE/MULTIMEDIA/INTERNET
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