More of this to follow, I sure> Allegiance Telecom Announces Industry's First Implementation of 'Electronic Bonding' With Bell Atlantic in New York Providers' Operations Support Systems are Linked Online and in Real-Time; <>
NEW YORK, Jan. 7 /PRNewswire/ via NewsEdge Corporation -- In an event that is expected to provide a major breakthrough in enabling customers to change local service providers swiftly and seamlessly, Allegiance Telecom, Inc. (Nasdaq: ALGX), today announced that it has achieved the first implementation of electronic bonding, between a Regional Bell Operating Company and a competitive local exchange carrier (CLEC), for facilities-based local services.
Today's announcement culminates a six-month joint effort between Allegiance, a CLEC, and Bell Atlantic to design, implement and test an electronic gateway linking their operations support systems (OSS) so that local phone customers in New York can more rapidly switch from one company to another.
The gateway allows Allegiance to process orders electronically for customers switching from Bell Atlantic to Allegiance and to confirm initiation and provision of service online and in real-time. In addition to processing customer orders more quickly, the interface enables facilities-based competitors like Allegiance to process orders more efficiently and reliably.
Allegiance expects to utilize the electronic gateway as a template to achieve electronic bonding with Bell Atlantic in other jurisdictions where Allegiance plans to offer service, including Massachusetts, New Jersey, Pennsylvania, Maryland, Virginia, and the District of Columbia.
"For a business like ours, which is emphasizing customer service above all, the speed, efficiency and effectiveness with which we can sign up customers and initiate service are of paramount importance," said Royce Holland, chairman and chief executive officer of Allegiance Telecom. "The achievement we announce today is an historic milestone in making the Telecommunications Act of 1996 a marketplace reality. I would especially like to congratulate the New York State Public Service Commission and Bell Atlantic for working with us to achieve success in a relatively short time period."
Jack Goldberg, president of Telecom Industry Services, said: "We are delighted that Allegiance has recognized the ability of Bell Atlantic's operations support systems to help competitors process orders quickly and accurately. We are eager to work with other competitors to achieve similar results as we build a robust wholesale business to serve this important client base in New York and elsewhere across our region.
"Resellers have been sending us orders electronically for some time now. We encourage facilities-based competitors to work with us to develop customized electronic systems that will enable them to process Unbundled Network Element (UNE) orders quickly and reliably," said Goldberg. "By building our industry-standard interfaces, we can provide easy access to our OSS and enhance our capability as a wholesale provider."
The lack of electronic bonding between facilities-based local carriers has been widely recognized as the principal bottleneck in realizing the competitive local service marketplace envisioned by the Telecommunications Act of 1996. Allegiance and Bell Atlantic believe their unprecedented arrangement will become a nationwide model for enhancing the ability of competitive carriers to process customer orders more swiftly and accurately, thus helping to eliminate the principal impediment to robust local telecommunications competition on a national scale.
Allegiance said the initiative with Bell Atlantic is a major step forward in its business plan, which relies upon promptly provided high-quality customer service as one of its prime drivers. Among other things, it allows Allegiance electronically to process the orders of customers switching from Bell Atlantic to Allegiance and to confirm initiation and provision of service online and in real-time. The arrangement replaces the common practice throughout the telecommunications industry, which involves multiple data entries and faxes between CLEC's and regional Bell companies, first to request the switch to Allegiance, then to confirm it.
Allegiance said trials of the system indicated that electronic bonding is the key to providing the following major benefits:
-- Saving approximately 20 business days on average in processing a
customer order (through the operations support systems of Allegiance
and the local phone company) and initiating service.
-- Significantly increasing the volume of customers that can be switched
to Allegiance service each month.
-- Eliminating many opportunities for service-affecting outages during the
switch of a customer's service from one local provider to another.
In addition to helping Allegiance accelerate service provisioning and installation, this advanced interface positions the company to expand the arrangement in the future to include other operations support systems functions, such as pre-ordering, billing and maintenance. As a result, the level of service Allegiance can offer its customers should be significantly enhanced.
Allegiance has achieved successful development and testing of electronic bonding with Bell Atlantic in large part because of Allegiance's advanced, integrated, operations support systems, which feature state-of-the-art systems and equipment to provide back office services (corporate backgrounders on the vendors, DSET and MetaSolv, are available). Many other telecommunications carriers, Allegiance said, are working with outmoded legacy systems that cannot provide the necessary level of interface to achieve bonding with incumbent providers. With the necessary technology now in place, Allegiance said the timeframe for achieving electronic bonding with other incumbent local phone companies can be cut significantly.
"Electronic bonding should help us significantly accelerate the pace at which we are able to provision and install access lines," said Holland. "In addition, we anticipate using the systems that we have developed and tested in New York as a basis to implement electronic bonding in other Bell Atlantic states as well as with other incumbent local exchange carriers.
"I have always believed that in order to have true local telecommunications competition on a large scale, a customer must be able to change local service providers almost as quickly and seamlessly as changing long distance providers. Today marks a giant step in making this a reality. "
Allegiance Telecom offers businesses a complete package of telecommunications services, including local, long distance, international calling, high-speed data transmission and Internet services. Allegiance is targeting 24 metropolitan areas in the U.S. with its "one-stop shopping" approach. The company's web address is: www.allegiancetele.com.
Certain statements in this press release constitute "forward-looking statements" within the meaning of federal securities laws, and the Company intends that such forward-looking statements be subject to the safe harbors created thereby. The words "believes," "expects," " estimates," "anticipates" and "will be" and similar words or expressions identify forward-looking statements made by or on behalf of the Company. These forward-looking statements reflect the Company's views as of the date they are made with respect to future events and financial performance, but are subject to many uncertainties and factors which may cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements. Examples of such uncertainties and factors include, but are not limited to, the extent to which the Company can achieve "electronic bonding" with ILECs, the Company's ability to timely and effectively provision new customers and the Company's continued access to necessary capital. The Company does not undertake any obligation to update or revise any forward-looking statement made by it or on its behalf, whether as a result of new information, future events or otherwise.
*Please note: At a press briefing today, Allegiance Telecom, Inc. and Bell Atlantic made a formal announcement about this arrangement. If you would like to hear a replay of the briefing, please call 888-203-1112, confirmation code 596377 -- the replay will continue until January 14th.
SOURCE Allegiance Telecom, Inc.
/CONTACT: Media, Claire Dunnett or John Henderson, 212-843-8054, Investors, Tom Lord, 404-812-4785 or Susan Howard, 404-525-7740, all for Allegiance Telecom, Inc.; or Media, Maureen Flanagan, 212-395-3519, of Bell Atlantic/ /Web site: allegiancetele.com (ALGX)
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