SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report August 4, 1998
(Date of earliest event reported) (August 3, 1998)
CTC COMMUNICATIONS CORP.
(Exact name of registrant as specified in its charter)
Massachusetts 0-13627 04-2731202
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
360 Second Ave., Waltham, Massachusetts 02154
(Address of principal executive offices) (Zip Code)
(781) 466-8080
(Registrant's telephone number including area code)
(Former name or former address if changed since last report)
<PAGE>
Item 5. Other Events
On August 3, 1998, the Registrant issued the following press release:
For Further Information Contact:
John D. Pittenger,
Executive Vice President -
Finance and Administration
CTC Communications Corp.
(781) 466-1302
Internet: http//www.ctcnet.com
August 3, 1998
FOR IMMEDIATE RELEASE
U.S. DISTRICT COURT DISSOLVES
TEMPORARY RESTRAINING ORDER AGAINST CTC COMMUNICATIONS
Portland, Maine, CTC Communications Corp. (NASDAQ NNM:CPTL) August 3,
1998 - United States District Court Judge Gene Carter of the United
States District Court in Portland, Maine late Friday dissolved a
temporary restraining order (TRO) against CTC Communications and ruled
that CTC had an absolute right to solicit customers they had served
while a Bell Atlantic agent.
The TRO, imposed against CTC six months ago by the U.S. District Court
in New York on the motion of Bell Atlantic, prevented CTC from
marketing local services to approximately 5,000 of its customers.
Friday's court decision means that all of CTC;s customers will have
access to the full complement of CTC's voice and data
telecommunications options and choices.
"This is a major victory for our company and for consumers," said
Robert J. Fabbricatore, Chairman and CEO of CTC. "Bell Atlantic has
used every possible tactic to block competition and thwart customer
choice, but the wall is finally beginning to crack."
Roger D. Young, lead trial counsel for CTC, called Judge Carter's
decision a crucial precedent in the rapidly unfolding Law of
Telecommunications. Mr. Young stated "Judge Carter's decisive ruling
puts all telephone companies on notice that restrictive covenants will
be carefully scrutinized by courts. These covenants are clearly anti-
competitive. We look forward to trial in November."
During the Portland proceeding, CTC volunteered to purge its data bases
of all outdated and aged information obtained over the years in which
CTC acted as a Bell Atlantic agent. Fabbricatore stated "When CTC left
the Bell Atlantic Agency Program, the Company returned all agency
related information. This further action should put to rest, once and
for all, any possible perception that CTC retains any agency related
information."
Fabbricatore noted that Judge Carter's decision is the latest in a
series of recent legal and regulatory victories for CTC. "All we want
is the opportunity to compete head-to-head to serve customers," he said
"Today's ruling and the events of the past month have moved us closer
to that goal."
On July 2, United States Court of Appeals for the Second Circuit in New
York denied Bell Atlantic's appeal to compel arbitration of CTC's claim
against the Baby Bell. The denial of Bell Atlantic's appeal means that
CTC's lawsuit in Federal Court in Maine against Bell Atlantic will
continue to move forward. Trial is scheduled for November, 1998.
Also on July 2nd, the Massachusetts Department of Telecommunications
and Energy ruled that it is illegal for Bell Atlantic to impose
"contract termination fees" on its customers who choose a competitive
Bell Atlantic Reseller as their local provider. Bell Atlantic
subsequently delayed this order through the appeals process.
And on July 16, the New Hampshire Public Utilities Commission held a
hearing on Bell Atlantic's recent policy of imposing contract
termination fees on its customers who choose a competitive Bell
Atlantic Reseller as their local provider. A decision by the New
Hampshire Commission is expected in the near future.
CTC has also initiated talks with the Federal Communication Commission
(FCC) to heighten their awareness of Bell Atlantic anti-competitive
policies and violations of the Telecommunications Act of 1996. "Bell
Atlantic is seeking approval to sell long distance in New York and it
is critical that the FCC have a full understanding of Bell Atlantic's
policies and practices to make an informed judgment," said
Fabbricatore. "It is inconceivable that Bell Atlantic could receive
approval for long distance given their continuing monopoly market share
and, the number and magnitude of constraints they have put in place to
stifle local competition."
"The pendulum is just beginning to swing back in favor of the
consumer," said Fabbricatore. "Bell Atlantic has put in place a number
of roadblocks for customers and competitors that stifle local
competition, and limit customer choice. CTC intends to challenge each
and every unfair and anti-competitive practice, state by state." CTC
Communications is currently pressing its demand for repeal of customer
termination fees in New Hampshire, Maine, Vermont, Rhode Island and New
York.
Fabbricatore called on Bell Atlantic to end its anti-competitive
maneuvering and delaying tactics in legal and regulatory forums and
turn its attention to customer service. "Rather than fighting this
out in legal and regulatory arenas, let us compete in the marketplace
where customers can decide which local provider is most committed to
meeting their needs."
CTC is a rapidly growing provider of integrated communications
solutions to small and medium sized business customers in the
Northeastern U.S. It provides an extensive array of voice and data
services including local, long distance, frame relay, Internet access
and other advanced data services. The Company markets its services
through its 170 member direct sales force throughout Massachusetts, New
York, Connecticut, New Hampshire, Vermont and Maine. CTC's
headquarters is in Waltham, MA and can be found on the World Wide Web
at http://www.ctcnet.com.
The statements in this press release that relate to future plans,
events or performances are forward-looking statements that involve risk
and uncertainties that could cause actual results to differ materially
from those reflected in the forward-looking statements. Readers are,
accordingly, cautioned not to place undue reliance on these forward-
looking statements, which speak only as to the date hereof. Additional
information about these risks and uncertainties is set forth in the
Company's most recent report on Form 10-K. CTC undertakes no
obligation to release publicly the results of any revisions to these
forward-looking statements that may be made to reflect results, events
or circumstances after the date hereof.
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 hereunto duly authorized.
CTC COMMUNICATIONS CORP.
(Registrant)
By: /s/ John D. Pittenger
John D. Pittenger,
Executive Vice President,
Finance and Administration
August 4, 1998
