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 January 11, 1999
(Date of earliest event reported) (January 8, 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.)
360 Second Ave., Waltham, Massachusetts 02451
(Address of principal executive offices) (Zip Code)
(781) 466-8080
(Registrant's telephone number including area code)
360 Second Ave., Waltham, Massachusetts 02154
(Former name or former address if changed since last report)
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Item 5. Other Events
On January 8, 1999, the Registrant issued the following press release:
CTC Communications Corp. Announces Agreements With Level 3 Communications and
NorthEast Optic Network for Transmission and Co-Location in New England & New
York
WALTHAM, Mass.--(BUSINESS WIRE)--Jan. 8, 1999--CTC Communications
(NASDAQ:CPTL) announced today that it has entered into agreements with Level
3 Communications, LLC ("Level 3") (NASDAQ:LVLT) and NorthEast Optic Network,
Inc. ("NEON") (NASDAQ:NOPT) for the provision of transmission and co-location
facilities for CTC's Integrated Communications Network ("ICN") phase I build-
out in New England and New York. The agreements, which total $11.6 million of
expenditures by CTC over three years, provide for SONET-based OC-3
connectivity between CTC's 22 network hub sites and two fully redundant
network operations centers. The agreements will permit CTC to co-locate its
switching equipment in Level 3 and NEON points of presence buildings (POPs)
along the fiber network.
The Phase I transmission infrastructure will support CTC's initial ICN
configuration with three self-healing SONET rings covering respectively the
southern, western and eastern New England regions. This advanced SONET
technology, which permits full circuit redundancy and diversity, will allow
CTC to take advantage of dense wave division multiplexing (DWDM) to meet the
increasing customer demands for reliable, high bandwidth voice, data and
video connectivity. The structure of each contract allows CTC to scale its
transmission capacity easily over time and each has an additional three-year
renewal provision.
CTC's Chairman and Chief Executive Officer, Robert J. Fabbricatore, stated:
"This is an extremely important step for CTC in our evolution to a true
facilities-based carrier, and the company is pleased to partner with Level 3
and NEON. Each of them is on the forefront of deploying next generation
networks, and their footprints are highly complementary with both the CTC
initial network build and our future expansion plans. Level 3 and NEON share
our vision that Internet Protocol-based (IP) networks will soon be the
primary means by which voice and data traffic is transported in this
country."
Level 3 President and CEO, James Q. Crowe, commented: "We believe this
agreement with CTC will be the beginning of a broad-based relationship
whereby Level 3 can help CTC expand its packet switched network presence into
new markets. CTC's IP-based network strategy is complementary with our own
network strategy, and we look forward to assisting CTC in its growth plans.
IP-based network technology is here, and it is enormously exciting. With
costs that are far less than those associated with traditional circuit
switching architectures, this revolution is going to have a profound impact
on all aspects of telecommunications."
NorthEast Optic Network Chairman and CEO, Vincent Bisceglia, said: "Our
partnership with CTC is a critical element in their visionary ICN strategy to
become a leading facilities-based carrier. Our DWDM/OC-192 photonic network
architecture enables CTC to rapidly scale to meet escalating customer
bandwidth demand. CTC's decision to combine NEON and Level 3's network
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solutions will greatly improve market velocity. Our complementary business
and network strategies greatly expand the geographic range of transport
solutions. We are thrilled to be at the threshold of the global bandwidth
revolution with such capable partners." NorthEast Optic Network, Inc. is a
facilities-based, carriers' carrier that provides high-bandwidth, fiber optic
transmission capacity for lease to certificated carriers on the Network's
interstate, intrastate and local loop facilities.
As previously reported, CTC began deploying Cisco wide area IP+ATM switches
in December 1998 and expects to have its initial hub sites installed and
interconnected by the end of March. Beginning in April, CTC will begin
transitioning selected customers on-net for full beta testing and plans to
begin transitioning its broader customer base on-net later this summer.
CTC is a rapidly growing provider of integrated communications solutions to
medium and large-sized business customers in the Northeastern 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 175 member direct
sales force located in 25 branch offices throughout Massachusetts, New York,
Connecticut, New Hampshire, Vermont, Rhode Island, Maine and Maryland. CTC's
headquarters is in Waltham, Massachusetts. CTC can be found on the worldwide
web at http://.ctcnet.com. Investors seeking information on CTC's transition
to a facilities-based CLEC strategy are encouraged to visit CTC's web site
for the fiscal second quarter conference call notes from the November 5, 1998
investor conference call.
The statements in this press release that relate to future plans, events or
performance are forward-looking statements, including statements relating to
operations and the timing of both the network deployment and the transition
of CTC customers to the network as well as statements regarding the
acceptance of IP-based network technology. These statements involve risk and
uncertainties that could cause actual results to differ materially from those
reflected or implied 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: CTC Communications
John Pittenger, CTC
(781) 466-1302
or
Steve Ingish, Level 3
(402) 943-1337
or
Fred Kocher, NEON
(781) 684-5175
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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 hereunto duly authorized.
CTC COMMUNICATIONS CORP.
(Registrant)
By: /s/ John D. Pittenger
John D. Pittenger,
Executive Vice President,
Finance and Administration
January 11, 1999
