Verizon Agrees to Pay Pac-West Telecomm Reciprocal Compensation for All Presumed ISP Traffic at FCC Rates
12 November 2004 - 4:26AM
PR Newswire (US)
Verizon Agrees to Pay Pac-West Telecomm Reciprocal Compensation for
All Presumed ISP Traffic at FCC Rates STOCKTON, Calif., Nov. 11
/PRNewswire-FirstCall/ -- Pac-West Telecomm, Inc. (NASDAQ:PACW), a
provider of communications services to service providers and
enterprise customers in the Western U.S., today announced that it
has reached an understanding with Verizon Communications, Inc.
regarding implementation of the FCC's decision to remove growth
caps and the new market restrictions which limited reciprocal
compensation for dial-up Internet traffic. Hank Carabelli,
Pac-West's President and CEO, said, "The two parties have agreed
that our interconnection agreement does not need modification to
implement the terms of the FCC's recent decision issued on October
8, 2004. As a result, we expect Verizon to cease withholding
reciprocal compensation for presumed ISP traffic and pay our
invoices from October 8th for as long as the existing rules remain
in place." John Sumpter, Pac-West's Vice-President of Regulatory,
commented, "We are pleased to reach this understanding with
Verizon. We believe the current environment allows both Pac-West
and Verizon to successfully offer service to each other and to our
respective customers." About Pac-West Telecomm, Inc. Founded in
1980 and first incorporated in 1981, Pac-West Telecomm, Inc. has
been offering telephone service to its customers since 1982.
Pac-West is currently one of the largest competitive local exchange
carriers headquartered in California. Pac-West's network averages
over 120 million minutes of voice and data traffic per day, and
carries an estimated 20% of the dial-up Internet traffic in
California. In addition to California, Pac-West has operations in
Nevada, Washington, Arizona, and Oregon. For more information,
please visit Pac-West's website at http://www.pacwest.com/.
Forward-Looking Statements In this press release, our use of the
words "outlook," "expect," "anticipate," "estimate," "forecast,"
"project," "likely," "objective," "plan," "designed," "goal,"
"target," and similar expressions is intended to identify
forward-looking statements. While these statements represent our
current judgment on what the future may hold, and we believe these
judgments are reasonable, actual results may differ materially due
to numerous important risk factors that are described in our Annual
Report on Form 10-K for the period ended December 31, 2003, as
filed with the SEC on March 30, 2004, which may be revised or
supplemented in subsequent reports filed by us with the SEC. Such
risk factors include, but are not limited to: our substantial
indebtedness; an inability to generate sufficient cash to service
our indebtedness; regulatory and legal uncertainty with respect to
intercarrier compensation payments received by us; the declining
rate at which intercarrier compensation payments are determined;
the inability to expand our business as a result of the
unavailability of funds to do so; adverse affects on our operations
as a result of covenants in agreements related to our borrowings;
the loss of key executive officers could negatively impact our
business prospects; the possible delisting of our common shares
from the Nasdaq SmallCap Market; and our principal competitors for
local services and potential additional competitors have advantages
that may adversely affect our ability to compete with them.
DATASOURCE: Pac-West Telecomm, Inc. CONTACT: Reid Cox of Pac-West
Telecomm, Inc., +1-209-926-3417, or Web site:
http://www.pacwest.com/
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