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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
March 12, 1998
Date of Report (Date of earliest event reported)
CHOICETEL COMMUNICATIONS, INC.
(Exact name of registrant as specified in its charter)
MINNESOTA 0-23017 41-1649949
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification No.)
incorporation)
9724 10TH AVENUE NORTH
PLYMOUTH, MINNESOTA 55441
(Address of principal executive offices)
(612) 544-1260
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
ChoiceTel Communications, Inc. announced impact of FCC ruling and
termination of proposed acquistion.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Filed herewith is the following exhibit:
99 Press release dated March 12, 1998
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CHOICETEL COMMUNICATIONS, INC.
(Registrant)
Dated: March 12, 1998 By /s/ Jack S. Kohler
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Jack S. Kohler
Its Vice President and Chief
Financial Officer
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FOR IMMEDIATE RELEASE:
CONTACT: Jack Kohler, Vice President and CFO
(612) 544-1260
FCC RULING WILL INCREASE LINE CHARGES FOR
CHOICETEL COMMUNICATIONS, INC.
MINNEAPOLIS, MN. - ChoiceTel Communications, Inc. (NASDAQ - PHON) announced that
an FCC order issued March 9, 1998 applicable to the pay telephone industry will
likely result in ChoiceTel incurring additional expense in order to continue to
receive dial-around compensation on approximately 1,500 of its pay telephones
located in Minnesota. The FCC order, which becomes effective April 8, 1998,
mandates that in order to receive dial-around compensation from long-distance
carriers, payphone providers such as ChoiceTel will have to use public-access
lines (PAL). In Minnesota, ChoiceTel presently uses mostly business lines which
it can obtain at prices below PAL rates. ChoiceTel is presently reviewing the
FCC ruling and is considering its options to contest or otherwise obtain relief
from the order. In the interim, ChoiceTel expects to convert most of its
Minnesota phones to PAL lines within the next several weeks which will increase
its line expenses on a per-phone basis by approximately $17.00 per month.
ChoiceTel does not anticipate increasing its coin rate for the phones to offset
the increased expense. Approximately 1,700 other pay phones operated by
ChoiceTel are unaffected by the FCC ruling in that such phones are already using
PAL lines.
Separately, ChoiceTel announced that it has terminated previously announced
discussions to acquire Sine Communications in New York.
ChoiceTel, based in Plymouth, Minnesota, is an independent payphone
provider, which owns and operates approximately 3,200 payphones in ten states.
Certain information included in this press release (as well as information
included in oral statements or other written statements made or to be made by
ChoiceTel) contains statements that are forward-looking (as defined in Section
27A of the Securities Act of 1933, as amended), such as statements relating to
the time period during which it anticipates completing the conversion of
approximately 1,500 phones from the use of business lines to PAL lines and the
additional monthly expense of maintaining service on such lines in the future.
Other changes may occur in federal or state laws or in the administration of
such laws by agencies such as the FCC which could affect line charges and
accordingly, actual costs to ChoiceTel, and actual results may differ from those
expressed in any forward-looking statements made by or on behalf of ChoiceTel.
