COMPANY: FIRSTCOM CORPORATION
TICKER: FCLX
EXCHANGE: NASDAQ SMALL CAP MARKET
FORM TYPE: 425
DOCUMENT DATE: AUGUST 15, 2000
FILING DATE: AUGUST 16, 2000
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: FirstCom Corporation
Commission File No.: 001-14017
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For Further Information:
Leonardo Santiago
Brainerd Communicators, Inc.
(212)-986-6667 (Office)
FIRSTCOM PERU TO PROVIDE FIXED TELEPHONY IN 4Q 2000
Miami - FirstCom (NASDAQ: FCLX), a facilities-based communications
provider in Latin America which plans to merge with AT&T Latin America, a
subsidiary of AT&T Corp., today announced that it has received regulatory
approval to provide fixed-line telephony services in Lima, Peru. FirstCom
expects to begin service in the fourth quarter of this year, when the
interconnection points with Telefonica del Peru's network are expected to be
operational.
On August 4, 2000, the Supervising Entity for Private Investments in
Telecommunications (OSIPTEL) approved the Interconnection Mandate, which covers
fixed telephony service, mobile service and public telephone service. The
interconnection charge will average US $0.0168 per minute (peak/off-peak
average) in August of this year, and will gradually be reduced to an average of
US $0.0096 by July 2002. FirstCom Peru has an authorization from the Ministry of
Transportation and Communications for the rights to operate fixed telephony for
20 years.
"We are very pleased with the approval of the Interconnection
Mandate," said Jose Gandullia, CEO for FirstCom Peru. "It effectively ends the
existing monopoly in the market and opens the door to competition, allowing for
new technology and better service for the ultimate benefit of consumers in Peru.
FirstCom is working to become the first alternative to the monopoly for fixed
telephony, as we are in long distance. With our fixed telephone service, we
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will complete our integrated services portfolio which -- along with our powerful
data transmission network -- positions the company as a leader in the Peruvian
market."
During the initial stage of service, FirstCom plans to provide
fixed-line telephony to its existing business customers. The company has
approximately 40,000 pre-subscribed lines that already receive long distance
service. Business customers account for approximately 80% of those lines.
FirstCom Peru currently has over 1,300 route kilometers installed and
in operation in its network. The network is 100% fiber optic and is based
entirely on IP/ATM technology, which allows for the provision of multiple
services (voice, data and video) over a single platform at high speeds. The
fixed telephony service will complement the integrated services portfolio that
FirstCom Peru now offers its business customers - including domestic and
international long distance, Internet, data transmission and value-added
services.
FirstCom Corporation, the parent of FirstCom Peru, is in the process of
merging with AT&T Latin America Corp., which has operations in Argentina and
Brazil.
About FirstCom Corporation
FirstCom Corporation operates as a publicly traded (NASDAQ: FCLX) competitive
local exchange carrier in four major metropolitan business centers in Chile,
Colombia and Peru. With annual revenues in 1999 of $38 million and approximately
650 employees at year-end, FirstCom owns and operates a technologically
advanced, fiber optic IP/ATM network and provides a wide range of integrated
communications services.
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Safe Harbor Statement Under the Private Securities Litigation Reform Act of
1995: The foregoing statements involve known and unknown risks and uncertainties
that may cause FirstCom's actual results or outcomes to be materially different
from those anticipated and discussed in this press release. Except for
historical information contained in this press release, the matters discussed
contain forward-looking statements that involve risks and uncertainties,
including but not limited to economic, competitive, governmental and
technological factors detailed in the Company's filings with the Securities and
Exchange Commission described above, which readers are urged to read carefully
in assessing the forward-looking statements contained herein.
In connection with the FirstCom/AT&T Latin America merger, FirstCom has filed a
definitive proxy statement and AT&T Latin America has filed a registration
statement on
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Form S-4. We urge investors and security holders to read the definitive proxy
statement and registration statement before they make a decision concerning the
merger. Security holders may obtain a free copy of those documents and other
documents filed by FirstCom Corporation at the SEC's web site at www.sec.gov. In
addition, documents filed with the SEC by FirstCom may also be obtained from
FirstCom Corporation by directing such request to FirstCom Corporation, 220
Alhambra Circle, Coral Gables, Florida 33134.
The members of the board of directors of FirstCom Corporation are Patricio E.
Northland, George Cargill, Andrew Hulsh and David Kleinman. As of the date
hereof, there are no other "participants in the solicitation," within the
meaning of Rule 14a-12 under the Securities Exchange Act of 1934, as amended.
Information concerning the directors is set forth in the definitive proxy
statement filed with the SEC.
