ISP News> California Public Utilities Commission Rules in Favor of Competitive Carriers in Dispute with Pacific Bell
October 23, 1998
ENGLEWOOD, Colo.--(BUSINESS WIRE) via NewsEdge Corporation --
In 3-2 Vote, CPUC Says ISP Calls are Locally Terminated
and Subject to Reciprocal Compensation
In another victory for competitive local exchange carriers (CLECs) and Internet users, the California Public Utilities Commission (CPUC) ruled that Pacific Bell, the incumbent local exchange carrier (ILEC) in California, must pay CLECs, including ICG Netcom, for the termination of local calls to Internet Service Providers, upholding current interconnection agreements.
By ruling that calls to ISPs are local telephone traffic and subject to commission jurisdiction, the CPUC becomes the 22nd consecutive state commission to order the ILECs to honor interconnection contracts signed with competitive local exchange carriers like ICG Netcom. To date, no state commission has ruled that ISP traffic is not local.
"As a result of this policy decision, the commissioners have clearly and boldly stated that competition in California is important and will thrive, " said Cindy Schonhaut, senior vice president for government and external affairs for ICG. "Reciprocal compensation was negotiated by Pac Bell in many of its interconnection agreements with CLECs. These agreements were approved by the CPUC and the commission has now reasserted its authority over these decisions."
ICG Netcom is a new breed of telecommunications company, known as an integrated communications provider (ICP), offering customers one-stop voice and data solutions, including local, long distance, high-speed Internet and data products and services, as well as innovative technologies such as Internet Protocol (IP) telephony and Digital Subscriber Line (DSL).
About ICG Netcom
ICG Netcom is the brand name for products and services from ICG Communications, Inc. (NASDAQ: ICGX) and ICG's subsidiary, NETCOM On-Line Communication Services, Inc. The combined entity is a leading integrated communications provider (ICP) offering high-quality telecommunications services. Headquartered in Englewood, Colo., ICG has extensive switched fiber-optic networks and offers local, long distance and enhanced telephony and data services in California, Colorado, the Ohio Valley and parts of the southeastern United States. The company provides Internet communication solutions, connectivity and web site hosting to individuals and to small- and medium-sized businesses through its subsidiary, NETCOM On-Line Communication Services, Inc., which is located on the Web at netcom.com. ICG also is a leading designer and installer of copper, fiber and wireless infrastructure for buildings and campuses. Further information is available on ICG's web site located at icgcomm.com
CONTACT: ICG Netcom, Englewood | Media: Lance Thomas, 303/414-5411 | lance_thomas@icgcomm.com | Investor: Steve Smith, 303/414-5350 | investor_relations@icgcomm.comm
[Copyright 1998, Business Wire]
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