Decision Blocks Dangerous Pac Bell Plan
STOCKTON, Calif., Nov. 6 /PRNewswire/ -- Pac-West Telecomm, Inc.
(Nasdaq: PACW), a rapidly growing competitive local exchange carrier (CLEC)
headquartered in California, released the following statement today in
response to the California Public Utilities Commission's (CPUC) release of the
proposed decision of Administrative Law Judge ALJ Pulsifer in the California
reciprocal compensation case.
STATEMENT BY PAC-WEST TELECOMM, INC.
The following statement may be attributed to John Sumpter, Vice President
of Regulatory for Pac-West Telecomm:
We believe the current system has helped keep Internet rates low, provided
unprecedented levels of affordable rural Internet access and promoted
meaningful competition in California. Californians are better off if we
continue to treat Internet calls like local calls.
Today's draft decision, which upholds reciprocal compensation, is good for
Internet service providers (ISPs), good for competitive local phone companies
and good for Internet users. It sends a clear message to the Baby Bells and
other incumbent phone companies in California, that they must continue to
share the cost of helping their customers reach the Internet and compensate
competitive local phone companies for connecting those customers.
Today's draft decision rejects the proposal being advanced by the Baby
Bells and other incumbents. Their proposal would make significant changes to
Internet policy; changes that could increase consumer Internet costs by 20 to
30 percent. The 50,000 companies and 2.5 million jobs that the Internet
supports rely on preserving a stable regulatory framework.
We strongly urge the California Public Utilities Commission to stay the
course and uphold this decision.
NOTE: ISP-bound traffic in California, like most states, is currently
treated like a local call. The Baby Bells and other incumbent phone companies
are required to pay a fee, called reciprocal compensation, when their
customers use the network of another local phone company to reach their ISP.
The Baby Bells and other incumbent phone companies want permission from the
California PUC to stop making reciprocal compensation payments, by
reclassifying California Internet traffic as interstate. This draft decision
by an Administrative Law Judge will be subject to California PUC approval.
About Pac-West Telecomm
Founded in 1980, Pac-West Telecomm, Inc. (Nasdaq: PACW) is a rapidly
growing provider of integrated communications services throughout the western
U.S. Pac-West supplies Internet infrastructure and broadband services to
Internet service providers (ISPs), and integrated voice, data and Internet
services to small and medium-sized businesses. The company currently has
operations in California, Nevada, Washington, Colorado, and Utah, and is
rapidly expanding its network into other western states. Pac-West is a
Safeguard Scientifics (NYSE: SFE) partner company. For more information,
please visit the company's web site at http://www.pacwest.com .
Forward-Looking Statements
The foregoing discussion contains forward-looking statements. The
Company's future performance is subject to numerous risks and uncertainties
that could cause actual results to deviate substantially from those discussed
in these forward-looking statements. Factors that could impact the
variability of future results include: successful execution of the Company's
expansion activities into new geographic markets on a timely and cost-
effective basis; the pace at which new competitors enter the Company's
existing and planned markets; competitive responses of the Incumbent Local
Exchange Carriers; execution of interconnection agreements with Incumbent
Local Exchange Carriers on terms satisfactory to the Company; maintenance of
the Company's supply agreements for transmission facilities; continued
acceptance of the Company's services by new and existing customers; the
outcome of legal and regulatory proceedings regarding reciprocal compensation
for Internet-related calls and certain of the Company's product offerings; the
ability to attract and retain talented employees; and the Company's ability to
successfully access markets, install switching electronics, and obtain the use
of leased fiber transport facilities and any required governmental
authorizations, franchises and permits, all in a timely manner, at reasonable
costs and on satisfactory terms and conditions, as well as regulatory,
legislative and judicial developments that could cause actual results to
differ materially from the future results indicated, expressed or implied, in
such forward-looking statements. These and other factors are discussed in the
Company's Prospectus dated November 3, 1999, and in its Annual Report as of
December 31, 1999, on Form 10-K as filed with the SEC.
SOURCE Pac-West Telecomm, Inc.
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Related links:
http://www.pacwest.com
CONTACT:
Reid Cox, Director of Investor Relations at
Pac-West Telecomm, 209-926-3417, email, rcox@pacwest.com; or
general, Lisa Horn Chainey, or media, Dawn Swidorski, both of The
Financial Relations Board, 415-986-1591
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