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Mpower Acquires ICG, Signs Contract with Tierzero

Mpower Communications (Booth 611) announced it has acquired ICG Communications Inc.s California customer base and network assets in California. The acquisition provides Mpower with a statewide SONET fiber network with fiber rings in six major metropolitan markets and 128 on-net fiber-lit commercial buildings. It also provides a wholesale channel for Mpower as it becomes a network provider to many IXCs, ISPs and CLECs in the United States.

In ICG, we have found a strategic transaction that transforms our business, states Mpower Chairman and CEO Rolla P. Huff. The addition of ICGs statewide SONET-based fiber network to our deep colocation and switching infrastructure affords us new products such as a private line; accelerates our speed to market with hosted IP PBX capabilities; positions us as a strong player in the wholesale market; and reduces our reliance on the ILECs.

Huff adds, With such an extensive network and given the current regulatory environment, Mpower is now in a position to pursue additional value creation opportunities by offering ISPs, IXCs and other CLECs an alternative to long-distance and local network capacity from the [Bells].

Mpower also sealed in early January a two-and-a-half-year contract worth $3.3 million with Tierzero, a California-based regional ISP.

Mpower will provide Tierzero with a private-line solution including a dedicated OC-48 fiber ring to deliver high-quality, high-speed T1 Internet access to its customers. Leveraging the capacity and reach of the California statewide SONET-based fiber network purchased from ICG, Mpower will enable Tierzero to supports its ISP business cost-effectively.

Tierzero immediately will be provisioning new customers on dedicated 1.54mbps Internet connections on Mpowers private-line network and convert its existing base of customers onto the Mpower network during the next few months.

The agreement with Tierzero is a perfect example of how competitive providers can work together to fill network capacity and generate additional revenue off existing networks, says Huff.


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