To: Frank A. Coluccio who wrote (1507 ) 10/12/1998 2:19:00 AM From: Stephen B. Temple Read Replies (1) | Respond to of 3178
Not your every day CLEC> Ameritech Corporation Pays Focal Communications for Internet Traffic October 12, 1998 CHICAGO, Oct. 9 /PRNewswire/ via NewsEdge Corporation -- Focal Communications Corporation (Focal), a competitive local exchange carrier (CLEC), has received a payment of more than $7 million from Ameritech Corporation for reciprocal compensation fees for Internet traffic. This represents a full settlement of the amounts in dispute. "We are delighted that Ameritech finally did the right thing and paid us the fees that they owed us," said Robert Taylor, Focal's president and chief executive officer. The dispute between Ameritech and Focal was about whether calls to the Internet should be treated as local calls or long distance calls. Under the interconnection agreement that Ameritech forged with Focal, each telecommunications company is required to pay the other for local calls which originate on one company's network and terminate on the other company's network. In its case before the Federal District Court, Ameritech argued that calls to the Internet are long distance calls. In July of this year, the Federal Court, making a decision in line with 21 state regulatory commissions, one State Court and two other Federal Courts, determined that Internet calls are local calls. The Federal Judge stayed this decision for 35 days to allow parties to appeal. On September 10th, the Seventh Circuit Court of Appeals rejected Ameritech's emergency motion for a stay pending appeal of the Federal District Court's decision. Attempts by Focal to collect the owed money were stalled by Ameritech until this week. Focal Communications Corporation, headquartered in Chicago, is providing sophisticated telecommunications users with facilities-based, switched local telephone service. Focal currently serves 13 MSAs (metropolitan statistical areas), is under construction in 21 MSAs and plans to reach a total of 42 MSAs in ten metropolitan markets by the end of 1999. The company is privately held by several major institutions and its employees. Focal offers unique communication services to major corporations, Internet Service Providers and value-added resellers. Focal is focused on providing customers with the diversity, reliability and sophistication that they demand. Additional information is available on Focal's web site at focal.com