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.