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SECURITIES AND EXCHANGE COMMISSION
8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
Date of Report
(Date of earliest event reported) March 11, 1997
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TELEPORT COMMUNICATIONS GROUP INC.
(Exact Name of Registrant as specified in its Charter)
Delaware 0-20913 13-3173139
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(State or Other jurisdiction of (Commission (IRS Employer of
Incorporation) File Number) Identification No.)
One Teleport Drive, Staten Island, New York 10311
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number including area code (718) 355-2000
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ITEM 5. OTHER EVENTS
THE FOLLOWING IS A PRESS RELEASE DISTRIBUTION AS OF MARCH 11, 1997
FOR IMMEDIATE RELEASE
TELEPORT COMMUNICATIONS GROUP TO ACQUIRE REMAINING 50.1
PERCENT OF BIZTEL COMMUNICATIONS WHICH PROVIDES 38 GHZ
WIRELESS SERVICES IN 48 STATES
NEW YORK, NY -- Teleport Communications Group Inc. (NASDAQ/NM: TCGI) today
announced an agreement to acquire the remaining 50.1 percent interest in
BizTel Communications, Inc. that it does not already own in exchange for 1.667
million shares of TCG Class A Common Stock. BizTel Communications is the
holding company for BizTel, Inc., which is providing high quality broadband 38
GHz wireless services in 48 states.
"BizTel's geographic coverage and a powerful new communications technology
provide a superb fit with TCG's existing fiber optic-based networks," said Bob
Annunziata, Chairman, President and Chief Executive Officer of TCG. "After the
successful completion of this acquisition, TCG will be the only competitor to
the ILECs to employ both fiber and wireless technologies to provide high quality
services on net, not only in TCG's existing markets where we operate now, but in
brand new markets and new geographic areas.
"TCG already has the largest number of route miles of fiber optic cable, the
most number of buildings on net, is the only consecutively positive EBITDA
(earnings before interest, taxes, depreciation and amortization) producing
company competing with the ILECs, and to top it off, we will become the major
player in 38 GHz services," Annunziata said.
Under a previous agreement with the owners of privately held BizTel
Communications, Inc., TCG owns 49.9 percent of BizTel Communications, Inc. The
latest agreement with BizTel Communications, Inc. gives TCG the option to
acquire 100 percent ownership. The agreement is subject to both Hart-Scott-
Rodino and FCC approvals, and becomes effective after July 15, 1997 when either
party can exercise the option.
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"We are excited about the possibilities TCG offers us," said Mark Foster,
Chairman and Chief Executive Officer of BizTel Communications, Inc. "We see
this relationship as the logical extension of an innovative application of new
wireless technology married to TCG's array of private line and switched, voice,
video and data services."
Under currently held FCC licenses, BizTel Inc. operates 38 GHz facilities in
more than 150 of the top markets in the country. TCG already resells BizTel
services in several markets.
TCG is the nation's first and largest competitive local exchange carrier,
serving 57 major markets. With the addition of eight new networks scheduled for
completion by the end of 1997, TCG's fiber optic networks will serve 65 major
markets, representing nearly 70 percent of the nation's business
telecommunications market. Many of the remaining markets will be addressable
through BizTel.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has caused this report to be signed on its behalf of the undersigned,
thereunto authorized.
TELEPORT COMMUNICATIONS GROUP INC.
Dated: March 19, 1997 By: /s/ Maria Terranova-Evans
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Name: Maria Terranova-Evans
Title: Vice President and Controller
(Principal Accounting Officer)
