To: Andrew who wrote (7 ) 12/11/1998 10:45:00 AM From: Greg Jung Read Replies (1) | Respond to of 471
e.spire Files Arbitrations Against BellSouth Thursday December 10, 12:34 pm Eastern Time Company Press Release SOURCE: e.spire e.spire Files Arbitrations Against BellSouth for Next Generation Interconnection Arrangements Almost Three Years After Passage of Telecom Act, BellSouth Continues To Stonewall on Issues Critical to Local Competition ANNAPOLIS JUNCTION, Md., Dec. 10 /PRNewswire/ -- e.spire Communications, Inc. (Nasdaq: ESPI - news) today announced that it has filed for arbitration against BellSouth in eight states over the terms for interconnecting the two companies' local networks -- terms that affect the ability of customers in the Southeastern and South Central United States to choose their local telecommunications company. e.spire, which obtained its initial interconnection in 1996 for local networks in cities throughout the BellSouth region, is pursuing arbitration to resolve the critical issues in its renegotiation of initial contracts before state public service commissions in: Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, South Carolina and Tennessee. ''Even though the Telecommunications Act of 1996 was passed almost 3 years ago, competitors still have to fight to translate the benefits into operational practices in the face of stonewalling by the incumbent monopolies on collocation, access to network elements, and other issues. Interconnection arbitrations are just one of the many regulatory battles necessary to make local competition a reality,'' said Riley Murphy, e.spire Executive Vice President and General Counsel. ''Although both sides have reached agreement on many points, a number of key issues remain to be arbitrated. The contract terms e.spire seeks are reasonable commercial arrangements and simply implement the Telecom Act.'' Some of the 97 issues in dispute are: * Availability of extended links as unbundled network elements. Such links facilitate cost-effective delivery of e.spire's facilities-based services to a broader array of customers. * Critical collocation alternatives and installation intervals. Collocation is the process of placing one carrier's network equipment in another's switching end office. The traditional method, called physical collocation, currently costs competitors hundreds of thousands of dollars for each site. e.spire seeks cost-effective and flexible alternatives such as extended link, shared collocation, and off-site collocation. * Performance penalties. Business contracts typically include language that guarantees performance and provides remedies for failure by one party to meet terms of the agreement. e.spire seeks these standard contract rights for BellSouth's failure to meet installation intervals and other critical implementation metrics. * Compensation for terminating local traffic. e.spire seeks payment to recover its costs for use of its network by BellSouth to terminate local traffic. * The unbundling of advanced telecommunications services. An Order by the Federal Communications Commission in August 1998 requires incumbent monopolies to provide unbundled elements to competitive carriers for data as well as for voice services. As the first competitor to successfully arbitrate network-to-network interconnection for data services in the US West region, e.spire is also seeking those arrangements in the BellSouth region. * Cost-based recurring and non-recurring pricing of unbundled network elements. e.spire is demanding cost-based rates for extended links and for customers to change to a competitor. e.spire is a new breed of telecommunications provider: an Applications Gateway Company (AGC), offering customers next generation services that include voice, high-speed data and Internet solutions and custom business applications. A facilities-based provider, the Company operates multimegabit local, regional and long haul broadband networks throughout the United States.