PSINet Teams With CLECs in the U.S. to Improve Internet Reliability
Agreements Provide Access Across Broad Calling Areas With Improved Circuit Installation Time
HERNDON, VA, April 15 /PRNewswire/ -- PSINet Inc. (Nasdaq: PSIX - news) announced today that it has completed agreements in
the United States with three competitive local exchange carriers (CLECs) including: ICG Communications Inc., e.spire Communications,
Inc., formerly ACSI (American Communications Services, Inc.), and Eagle Communications, Inc. The agreements give PSINet colocation
rights and access to a range of CLEC capabilities -- particularly primary rate interface (PRI) circuits. PSINet typically employs PRIs for a
broad range of business Internet connections below T1 speeds.
Changing Landscape for Bandwidth Availability
High-throughput network bandwidth facilities in the United States have historically been a regulated utility under the control of regional Bell
operating companies (RBOCs). As a result, availability became limited and pricing remained high due to the exclusive market for facilities
ownership.
However, industry deregulation, healthy growth of the commercial Internet, and new technologies are creating alternatives to traditional
RBOC services, particularly in primary metropolitan areas.
PSINet selected ICG Communications Inc. (Nasdaq: ICGX - news) of Englewood, CO; e.spire Communications, Inc. of Annapolis
Junction, MD; and Eagle Communications, Inc. of New York, NY, to provision thousands of PRI circuits across their service areas
supporting nearly 100,000 modems. EDITOR'S NOTE: PSINet recently announced the purchase of 50,000 new high-speed modems
from Ascend Communications (Nasdaq: ASND - news) which are being deployed with these PRI circuits during the next two quarters.
Continuation of Network Strategy Implementation
''These three CLEC agreements demonstrate PSINet's strategy of combining the strengths of the regional Bell operating company
networks with the new entrepreneurial CLEC networks in our effort to expand the PSINet Internet footprint in the U.S,'' said William L.
Schrader, PSINet's chairman, president, and CEO. ''Our approach of leasing ISDN circuits from the RBOC and several CLECs in each
major metropolitan area provides PSINet customers with greater reliability because of the alternative paths to reach the Internet.'' In
addition to the management benefits for PSINet, these relationships create new market opportunities for the CLEC partner. PSINet is
actively looking for additional CLEC providers in all major markets that have good working relationships with the RBOCs. ''Our focus is
on competitive local exchange carriers with facilities that can be quickly integrated with our nation-wide fiber optic OC-48 backbone.''
Schrader added.
PSINet CLEC agreements cover key business regions in California, Texas, Colorado, Illinois, Ohio, Pennsylvania, New York, Washington
DC, Tennessee, North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, Arkansas, and Oklahoma. The metro
areas served are all to be linked along PSINet's recently acquired 10,000 mile OC-48 fiber-optic facilities being provided by IXC
Communications (Nasdaq: IIXC - news) of Austin TX.
In choosing CLEC partners, PSINet considers five primary selection criteria including:
quality of technical support for ISDN PRI circuits
speed of circuit provisioning and installation capabilities
scope of local calling area coverage
flexibility in multiple geographic coverage for minimum orders
overall cost and value proposition.
The agreements have been developed over the past several quarters by Charles Cary, PSINet's vice president responsible for product
management, capacity planning, and carrier relations, and Mitchell Levinn, vice president for PSINet's wholly-owned subsidiary PSINet
Telecom Limited (see February 11, 1998 press release). Cary was recruited in mid-1997 to lead this effort, while Levinn has been
instrumental in the development of PSINet's Internet- optimized network and has been responsible for its operation since the early 1990's.
Harbingers of Competitive Bandwidth Access
CLECs evolved as a result of deregulation of the U.S. telecommunications industry. CLECs are building new redundant local PSTN
fiber-optic and telephone switching facilities to compete with the RBOCs to deliver local telephone services. Through a unique blend of new
technology and metropolitan area focus, CLECs have aggressively forged a new market dynamic based on open competition and
best-value propositions. PSINet intends to continue to leverage CLEC core competencies, merging them with PSINet's heritage of world-
class Internet-based business communication services to provide increased value to customers, stakeholders, and employees.
''Tier one business communication carriers like PSINet are demanding faster access to the Internet at a lower cost and ICG is fully
committed to leading technologies such as DSL that will provide these services,'' said J. Shelby Bryan, president and CEO of ICG
Communications, Inc. ''Our extensive fiber optic infrastructure combined with PSINet's Internet-optimized business communication
network and application services, offers customers a competitively priced, full service interconnection solution,'' said Bryan. 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. Further information is available on ICG's Website located at
www.icgcomm.com.
''We look forward to providing highest-quality PRI circuit services to PSINet. Recognized as a best-of-breed business data
communications carrier, PSINet is poised for significant growth,'' said Jack Reich, president and CEO of e.spire Communications, Inc.
''This combines well with e.spire's core competencies. We have positioned the company and our enhanced services to handle increases in
demand by our ISP partners - we look forward to the opportunities to grow together,'' he added. e.spire offers a full suite of integrated
business telecommunications services, including dedicated access, local dial tone, long distance, advanced data, Internet and networking
solutions. The company is actively implementing marketing plans to become the primary provider of competitive voice and data
communications services in all markets it serves. For more information about e.spire, visit www.espire.net on the Internet. (The former
ACSI yesterday launched a nationwide campaign to announce its new name, e.spire, and its new corporate image and strategy.)
''PSINet continues its progressive trend-setting pace by leveraging proven alternatives for PRI circuits. Eagle holds a similar vision of
innovation and we firmly believe that our business relationship with PSINet will increase opportunities for both companies and open new
markets,'' said Kent Charugundla, president of Eagle Communications, Inc. A privately held CLEC, Eagle operates in 20 east coast
markets stretching from Boston to Miami; by the end of 1998, Eagle will be serving over 100 markets. Eagle's focus on ISP needs is
evident by the fact that the company offers detailed provisioning and start dates and guarantees that ISP prices will be 50% less than
RBOCs in the region. Additional information can be obtained at www.eagletelco.com.
About PSINet Inc.
PSINet (Nasdaq: PSIX - news) is a global facilities-based Internet Protocol (IP) data communications carrier focused on the business
marketplace. As the first and largest independent commercial Internet service provider in the world, PSINet offers a broad set of
high-speed corporate LAN connectivity services supporting managed security and guaranteed Internet, intranet, electronic commerce, Web
hosting services, and services for other carriers and ISPs. PSINet operates an international state-of-the-art frame relay-based, IP-
optimized network connecting to ISDN, ATM, SMDS, and wireless/satellite systems, serving over 33,000 corporate accounts with over
400 points of presence extending to 10 countries.
Headquartered in Herndon, VA, PSINet has subsidiaries in Canada, Japan, Belgium, France, Germany, Italy, the Netherlands,
Switzerland, and the UK. For more information, media representatives can contact Michael Binko, APR at PSINet by telephone at
703-904-4285, or via e-mail at binkom@psi.com. General PSINet company information can be obtained by e-mail at info@psi.com, or
by accessing the Web site at psi.net.
SOURCE: PSINet Inc. |
