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 September 29, 1999
(Date of earliest event reported) (September 13, 1999)
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.)
220 Bear Hill Rd., Waltham, Massachusetts 02451
(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
1. On September 13, 1999, the Registrant issued the following press
release:
"CTC Communications Signs $8 Million Contract with Accelerated Networks
MOORPARK, Calif.--Sept. 13, 1999-- CTC Communications Corp. (Nasdaq:CPTL) and
Accelerated Networks Monday announced the signing of an $8 million contract
for CTC's purchase of Accelerated Networks' Integrated Access Devices (IADs)
and Multi-Service Access Platforms (MSAPs).
CTC is currently deploying Accelerated's IADs and MSAPs as part of its Cisco
Powered Integrated Communications Network (ICN) and its PowerPath(SM)
broadband customer access service.
CTC utilizes Accelerated Networks' IADs at customer locations, as an integral
part of CTC's PowerPath(SM) broadband customer access, for delivering
converged voice and data services to business customers over digital
broadband access facilities.
Accelerated's MSAPs are utilized in CTC's regional POPs and supply GR-303
voice gateway functionality to CTC's ICN Network voice calls, linking CTC
customers to the upstream long-distance network.
Accelerated's equipment is being installed at CTC's business customer
locations, where voice and data traffic is integrated and delivered over
high-speed ATM packet lines to Cisco ATM switches within CTC's ICN Network.
Traffic is routed over the ICN Network to either its on-net destination or to
regional POPs, where gateway functionality facilitates Network to Network
Interface (NNI) to other ATM and frame relay data networks, the Internet and
long-distance voice carriers.
"Building an access network infrastructure that combines toll-quality voice
and high-speed data traffic over a single facility is a strong competitive
move," observed Jennifer Pigg, senior vice president of data communications
at Yankee Group.
"By enabling integrated multi-service delivery to the customer's premises
with the Accelerated Networks solution, CTC will be able to extend to its
customers a flexible, manageable, cost effective solution."
CTC is currently in the process of completing beta customer testing of its
ICN Network and will have 50 customer locations on-net in September and 200
by the end of 1999. CTC's PowerPath(SM) will provide high-speed broadband ATM
customer access between the ICN Network and these customer locations.
CTC's PowerPath(SM) delivers integrated services including long distance
voice, data, video and Internet to the customer location utilizing a variety
of underlying technologies including SDSL, leased T1s and fiber. CTC operates
regional POPs in each of the New England states, New York, New Jersey and
Maryland.
<PAGE>
"The addition of Accelerated's integrated broadband access equipment to our
network architecture provides the final pieces for an overall end-to-end
multi-service deployment," said Frederic Kunzi, vice president and chief
technology officer at CTC.
"We are on track with our deployment and services offering plans and have
customer contracts in hand for our September ramp up. As we increase the
number of customer locations on-net and move toward full production,
Accelerated Networks will continue to meet our requirements with timely
delivery of quality products that contribute to keeping our service quality
high and our operational and provisioning costs to a minimum."
Suresh Nihalani, president and chief executive officer of Accelerated
Networks, stated, "CTC's implementation of our solution underscores our
commitment to building flexible, standards-based access products.
"By providing both the access and long-distance voice gateway components to
CTC's network, we support their existing infrastructure while allowing them
to deliver revenue-generating services within an attractive cost model."
About CTC Communications
CTC is a rapidly growing Integrated Communications Provider (ICP) of
integrated communications solutions to medium- and large-sized business
customers in the Northeast United States. 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 253 member sales and service
representatives located in 25 branch offices throughout Maine, New Hampshire,
Vermont, Massachusetts, Rhode Island, Connecticut, New York and Maryland.
Company headquarters are in Waltham, Mass., and CTC can be found on the World
Wide Web at www.ctcnet.com
About Accelerated Networks
Accelerated Networks is the leading supplier of voice and data over DSL and
integrated broadband access solutions. These systems enable providers to
offer a full complement of bundled voice and data services over a single DSL
or T1 access line.
Based on open industry standards, Accelerated is the only company to offer
all three components of a complete access solution -- customer premises
integrated access devices (IADs), NEBS-compliant central office multi-service
access platforms (MSAPs) used for concentration, and service POP MSAPs used
to gateway into upstream voice and data networks.
In addition to allowing providers to offer enhanced services and generate
additional revenues, Accelerated's products dramatically reduce the costs of
provisioning and operation, and allow service providers to reduce their time
to market.
Since its introduction, Accelerated Networks has garnered five prestigious
industry awards, including Best of Category and Best of Show at
NetWorld+Interop Atlanta 98, Data Communications' Top 25 Startups and a 1999
Hot Product of the Year, and the International Engineering Consortium (IEC)
InfoVision award.
<PAGE>
The company received funding from New Enterprise Associates, US Venture
Partners, ONSET Ventures, Walden International Investment Group, and Siemens
AG. More information on Accelerated Networks and its product line can be
found at www.acceleratednetworks.com.
The statements in this news release that relate to future plans, events or
performance 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 CTC's most recent report on Form 10-
Q. 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.
CONTACT: Accelerated Networks Inc., Moorpark
Kathy Tebben, 805/553-9680 ext. 233
[email protected]
or
CTC Communications Corp., Waltham
John D. Pittenger, 781/466-1302
[email protected]"
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2. On September 29, 1999, the Registrant issued the following press
release:
"Demand for CTC Communications' $100-Million, Cisco-Powered 'Integrated
Communications Network' (ICN) Proceeds at Record Pace; Phase I of CTC's
Managed Rollout of ICN and PowerPath(SM) Ahead of Schedule; Phase II to Begin
in January 2000--
WALTHAM, Mass., Sept. 29 -- CTC Communications (Nasdaq: CPTL) -- a rapidly
growing provider of state-of-the-art integrated communications solutions for
medium-to-large enterprises in the Northeast U.S. -- today announced that
customer demand for its recently completed, certified Cisco (Nasdaq: CSCO)
Powered Network(TM) is proceeding at a record pace.
CTC's "Integrated Communications Network," or ICN, successfully completed all
aspects of beta testing in early September. The company is now implementing a
managed commercial roll-out through the end of 1999, at which point it will
shift into full commercial production in the year 2000. Currently, 50 major
business locations are "live" on the ICN and CTC is on target for that number
to reach 200 by December 1999, and 2,400 by December 2000. Current customer
demand for the network exceeds the planned ramp-up schedule.
The ICN -- which is a fully integrated end-to-end network service --
initially is comprised of 22 Cisco-powered hub locations, providing service
within and between markets in each of the New England States, New York and
New Jersey. It is powered by a suite of Cisco networking products, including
<PAGE>
IP, frame relay and ATM, thus enabling CTC to deliver converged, value-added,
high-speed Internet, data, video and long distance voice services to its
customer base. The ICN currently represents a $35 million capital investment
by CTC and it is anticipated that a success-based expansion of the network
totaling an additional $65 million will be implemented over the next two
years.
The "last mile" of the network to the customer premise is a wholly unique
delivery platform developed exclusively by CTC. Called PowerPath(SM), it
provides high-speed broadband access right to the customer's locations. In
this way, CTC is able to deliver a full portfolio of integrated
communications offerings directly to the customer location utilizing the
latest underlying technologies, including SDSL, T1 lines, fiber and wireless.
CTC works in a consultative approach with its customers to help them select
that "fabric" which best addresses their specific needs.
In making today's announcement, Robert J. Fabbricatore, Chairman of the Board
and CEO of CTC stated, "Customer response to the ICN Network has been
exceptional. Our customers want to get on the network for a number of
reasons. First, they reduce their networking costs by consolidating services
on our PowerPath(SM) broadband access facility. Secondly, the normal order
activity for adds, moves and changes are accomplished swiftly and easily
through bandwidth assignment on that same access facility, rather than
ordering new. And finally, our customers are data savvy and understand
emerging technologies and applications. It is not lost on them that CTC's ICN
Network places a broadband gateway right at their business locations. They
recognize that this is their gateway to the future of packet-based local
services, IP voice and IP fiber."
"To address the current and future needs of our customers," Mr. Fabbricatore
continued, "CTC has partnered with Cisco, the leading developer of networking
hardware and software, and is investing $100 million in the ICN. Our goal is
to deliver the most robust network of its kind - anywhere: a single source
solution to meet all the communication needs of our customers, and to
position them to excel in the emerging world of web-based communications,
information and e-commerce. Our ICN Network enables us to provide our
business customers with quality of service, flexibility and economies that
are second to none." Currently CTC has more than 10,000 business customers;
and the company has achieved an industry-leading client retention rate in
excess of 99 percent.
About CTC Communications
CTC, headquartered in Waltham, Massachusetts, is a rapidly growing provider
of integrated communication solutions to medium and larger-sized business
customers in the Northeast 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. In August of this year, the company
officially became an Internet Service Provider. CTC markets its services
through 310 member sales and service representatives located in 26 branch
offices throughout Maine, New Hampshire, Vermont, Massachusetts, Rhode
Island, Connecticut, New York and Maryland. CTC Communications' ICN Network
is fully redundant and is managed at the company's recently completed, state-
of-the-art Technology Center, located at its corporate headquarters in
Waltham, Massachusetts. As of June 30, 1999, the company had more than
184,000 access lines in service and has been consistently adding 40,000 new
lines per quarter. CTC has the highest market-share among CLECs in its
operating area. CTC can be found on the Worldwide Web at www.ctcnet.com.
<PAGE>
The statements in this press release that relate to future plans, events or
performance 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-Q. 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.
/CONTACT: Paul D. Feldman of Feldman Communications Inc., 410-571-8900 or
[email protected]; or Alan Russell of CTC Communications, 800-287-9875 or
[email protected]/"
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
September 29, 1999
