IP Communications Network Consolidation To Affect Less Than 1% of Customer Base.Business Editors/High-Tech Writers DALLAS--(BUSINESS WIRE)--Jan. 9, 2002 Company Will Remain Region's Largest Broadband Network Service Provider After Removing Equipment in Smaller Offices As part of an effort to increase profitability with minimal customer impact, IP Communications announced plans to consolidate its extensive broadband services network in some smaller markets in its 4-state region. In a filing late last month with the Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. (FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. ) and state public utility commissions, the company said it planned to remove equipment from about 15 percent of its collocations in Southwestern Bell central offices. Most of the offices are in Missouri, Kansas and Oklahoma, with a small number in Texas. The initiative will begin in February and should be completed by the end of March. The FCC's January 4 public notice of the plan suggested that IP Communications was discontinuing its operations, which is not the case at all. After the consolidation, IP Communications will continue to serve 350 markets, providing the most extensive broadband network coverage in the region. Following is a statement by Sean Minter, IP Communications President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. : "The effect of our network restructuring on IP Communications' customer base and revenues will be minimal, since the company is only removing equipment in central offices that serve less than one percent of our customers. "IP Communications has taken careful measures to inform affected customers and take care of their needs. The company mailed out letters and called customers served by the affected collocations in mid-December to give them notice and to offer them alternative services. Through rigorous efforts to provide customers with alternatives, we will retain the majority of affected customers. "The company's plan to phase out low-revenue-generating collocations is a logical way to eliminate associated network maintenance costs and to boost profitability. Our business will be healthier as we have taken steps to reduce costs that did not contribute to profits. This move is an obvious 'positive' in our quest towards profitability." About IP Communications Founded in 1999, IP Communications has the most extensive broadband network in Texas, Oklahoma, Kansas and Missouri. IP Communications offers business-class, high-speed, virtual private networking as well as Internet connectivity, email and web hosting services to all-size businesses. IP Communications partners with Internet Service Providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. to offer residential broadband Internet access Broadband Internet access, often shortened to just "broadband", is high speed Internet access—typically contrasted with dial-up access over modem. Dial-up modems are generally only capable of a maximum bitrate of 56 kbit/s (kilobits per second) and require the full use of a via DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary (Digital Subscriber Line See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and ) service. IP Communications' next generation packet-switched network, using an Asynchronous Transfer Mode See ATM. (communications) Asynchronous Transfer Mode - (ATM, or "fast packet") A method for the dynamic allocation of bandwidth using a fixed-size packet (called a cell). See also ATM Forum, Wideband ATM. ATM acronyms. Indiana acronyms. (ATM) backbone and advanced switching capabilities, enables the company to offer extensive quality and class of service. IP Communications' Web site is www.ip.net. |
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