CTC Communications Comments on Recent Industry Announcements.Business/Technology Editors Company Responds to Recent Announcements by Major Carriers on Deployment Of Packet Switching A network technology that breaks up a message into small packets for transmission. Unlike circuit switching, which requires the establishment of a dedicated point-to-point connection, each packet in a packet-switched network contains a destination address. Within Their Networks CTC CTC - Cornell Theory Center Communications Group Inc. (CTC) (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on NM: CPTL CPTL Compagnie des Pétroles Total Libye (Total SA Group Affiliates) CPTL Center for Trade Policy and Law (Carleton University; Ottawa, Canada) ) commented on recent announcements by major carriers on their recent decision to use packet switching within their networks. CTC has been providing toll calling, data and Internet services for businesses on the Company's packet switched PowerPath(R) Network since 1999 and in 2001 began providing local dial tone services for businesses on the PowerPath(R) Network using softswitch technology. The Company's network, called the PowerPath(R) Network, is a Cisco Powered packet switched network utilizing softswitch technology by Telcordia Technologies Telcordia Technologies, formerly Bell Communications Research, Inc. or Bellcore, is a telecommunications research and development (R&D) company based in the United States and created on January 1 1984 as part of the 1982 Modification of Final Judgment that broke up . Packet switching is a replacement for traditional circuit switching A networking technology that provides a temporary, but dedicated, connection between two stations no matter how many switching devices the data are routed through. Circuit switching was originally developed for the analog-based telephone system in order to guarantee steady, consistent architectures and allows voice and data traffic to be carried together in distinct "packets" using a single broadband connection See broadband and wireless broadband. and has been referred to as "next generation technology". Robert J. Fabbricatore, Chairman of the Board and Chief Executive Officer of CTC, "CTC set out three years ago to build the network of the future, a network that would fulfill the expectations of the 1996 Telecommunications Act There are several laws named the Telecommunications Act
Fabbricatore continued, "There is no longer a question on whether packet switching can replace services provided on legacy networks. In addition, no one questions the benefits of packet versus circuit switching and industry analysts estimate that networks built on packet switching can save approximately 50% on capital required to build and run a network. Analysts also agree that there can be substantial savings on network operating costs operating costs npl → gastos mpl operacionales and CTC is proving that it can be done and is passing savings on to its business customers. Our competitors are now publicly confirming the efficiencies of packet switching, reporting that packet switching will allow them to provide high quality services they have today, and realize efficiencies which do not exist in today's circuit-switching environment." Fabbricatore concluded, "The ultimate benefit of these more efficient and scalable packet based networks is that customers save on their monthly communication bills. Today, CTC's customers are realizing the benefits of competition in the marketplace brought on by the 1996 Telecommunications Act and are saving from 15-40% using our PowerPath(R) Network to converge con·verge v. con·verged, con·verg·ing, con·verg·es v.intr. 1. a. To tend toward or approach an intersecting point: lines that converge. b. voice, data and Internet traffic Internet traffic is the flow of data around the Internet. It includes web traffic, which is the amount of that data that is related to the World Wide Web, along with the traffic from other major uses of the Internet, such as electronic mail and peer-to-peer networks. . CTC's customers are taking advantage of the benefits of packet switching today and because of our PowerPath(R) Network, they are now properly positioned for the future of IP based communications." About CTC Communications CTC is a rapidly growing "next generation" Integrated Communications Carrier utilizing advanced technology and providing its customers with converged voice, data, Internet and video services on a broadband, packet-based network, called the PowerPath(R) Network. The Company serves medium and larger business customers from Virginia to Maine, which includes the most robust telecommunications region in the world--the Washington D.C. to Boston corridor. CTC was managing more than 607,000 access lines as of March 31, 2002. CTC's Cisco Powered IP+ATM packet network and its 450 member sales and service teams, provide contiguous marketing and technology coverage throughout the Northeast and Mid-Atlantic States Mid-At·lan·tic States See Middle Atlantic States. Noun 1. Mid-Atlantic states - a region of the eastern United States comprising New York and New Jersey and Pennsylvania and Delaware and Maryland U.S.A. . The Company, through its dedicated commitment to exceptional customer service, has achieved an industry-leading market share in the Northeast. CTC can be found on the worldwide web at www.ctcnet.com. The statements in this press release that relate to future plans, events or performance are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risk and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements including the validation of packet switching technology, efficiencies and, the cost savings associated with packet switching, reduced costs to customers and reduced Company operating costs, migration of customer's on-net and improved margins and achieve forecasted numbers and become a successful and profitable organization. Readers are, accordingly, cautioned not to place undue reliance on these forward-looking statements. Additional information about these risks and uncertainties is set forth in the Company's most recent report on Forms 10-K and 10-Q. CTC undertakes no obligation to release publicly the results of any revisions to these forward-looking statements that may be made to reflect results, events or circumstances after the date hereof. |
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