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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
Date of Report (Date of earliest event reported) May 9, 1996
METRO ONE TELECOMMUNICATIONS, INC.
(Exact name of registrant as specified in its charter)
OREGON 0-27024 93 0995165
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(State of Incorporation) (Commission file Number) (IRS Employer
Identification No.)
8405 S.W. Nimbus Avenue, Beaverton, Oregon 97008
Registrant's telephone number, including area code: (503) 643-9500
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ITEM 5. Other Events
Metro One Telecommunications announced on May 9, 1996, that its
enhanced directory assistance contract with AirTouch Cellular, covering the
greater San Diego area, has not been renewed. As previously reported, this
contract expired in the first quarter of 1996 and, although renewed on a
short-term basis, was not expected to be renewed on a long-term basis. The
revenues related to this contract represented approximately seven percent of
Metro One's total revenue for 1995.
Another independent vendor of directory assistance services, InfoNXX, was
awarded a new contract on the basis of a competitive bidding process. As of May
6, that vendor began handling calls for AirTouch from remote call centers.
Although Metro One participated in the bidding process, it was unable to obtain
renewal on acceptable terms. During the process, AirTouch sought price
concessions and a commitment to complete exclusivity in markets covered by the
new contract, which terms were inconsistent with Metro One's growth strategy
and business plan. The Company believes that its unwillingness to provide such
concessions was a factor in AirTouch's decision to award the new contract to
another vendor.
The Company serves competing wireless carriers in several geographic markets and
believes that, due to the proliferation of wireless carriers arising from the
development of PCS systems, the servicing of multiple customers enhances the
quality of the Company's product and increases the prospect of rapid,
sustainable and profitable growth. The Company is also committed to the
maintenance of contractual rates that support the provision of high quality,
feature-rich enhanced directory assistance.
The implications of the AirTouch contract non-renewal on future contract
renewals are unclear. In July 1994, AirTouch and U S West announced their
intention to combine their cellular properties in a multi-phase transaction.
AirTouch has formed a partnership, called TOMCOM, L.P., with Bell Atlantic and
NYNEX to develop common service standards, pursue national marketing
strategies, develop information technology, create a national distribution
strategy and implement joint purchasing arrangements. Unlike the AirTouch U S
West partnership, however, TOMCOM does not contemplate a merger of cellular
properties. Two contracts with certain of those entities are up for renewal in
1997 with the remainder in subsequent years. The Company intends to provide its
enhanced directory assistance under those contracts through their respective
termination dates, upon which it will seek renewal, where such renewal is
possible and is attainable under acceptable terms.
Metro One continues to provide its enhanced director assistance service for GTE
Mobilnet from its San Diego call center.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
METRO ONE TELECOMMUNICATIONS, INC.
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(Registrant)
Date: May 10, 1996 By: /s/ Stebbins B. Chandor, Jr.
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Stebbins B. Chandor, Jr.
Senior Vice President and
Chief Financial Officer
