Mpower Reiterates Retail Strategy Catering to Business Customers
Company Has No Reliance on Revenue from Internet Service Providers
ROCHESTER, NY - December 4, 2000 - Mpower Communications Corp. (NASDAQ: MPWR), a provider of broadband data, Internet and telephony services to business customers, today reiterated its retail-focused business model.
"Mpower's strategy sets us apart from many other companies," said Mpower President and Chief Executive Officer Rolla P. Huff. "We have built our own facilities-based network specifically designed to serve the needs of our small and mid-size business customers. As a purely retail provider of voice and data services, we have no exposure to wholesale revenue streams, including wholesale Internet Service Provider revenue streams."
In addition, the company has negotiated long-term switched access agreements with its major interexchange carriers and has collected switched access revenue from all of those agreements. Mpower anticipates exiting 2000 with approximately $400 million in cash that will fund its business plan into 2002.
Mpower provides its customers with bundled voice and data solutions delivered over a technology platform consisting of both traditional telephony and data capabilities. This network architecture allows Mpower to deliver service via multiple technologies and will accommodate future technology enhancements.
"We want to reiterate our steadfast belief that our strategy of selling bundled services through our direct sales force and delivering these services over a technology agnostic network is the correct combination of business elements to drive long-term value in Mpower," added Huff. "We remain focused on striving towards executing with excellence in every aspect of our business."
About Mpower Communications Corp.
Mpower Communications Corp. provides small and medium-size business customers with a bundle of broadband data and voice communication services. Leveraging its facilities-based DSL (Digital Subscriber Line) service delivery platform, Mpower's direct sales force offers data, telephony, Internet access and Web hosting solutions to customers in 42 markets nationwide. Headquartered in Rochester, New York, Mpower has more than 2,000 employees. Mpower's common stock is traded on the Nasdaq National Market under the symbol MPWR. More information on the company can be found at www.mpowercom.com.
Forward-Looking Statements
Certain statements contained in this press release that state Mpower Communications and/or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. Management wishes to caution the reader these forward-looking statements are not historical facts and are only estimates or predictions. Actual results may differ materially as a result of risks and uncertainties including, but not limited to, projections of future sales, returns on invested assets, regulatory approval processes, market conditions and other risks detailed from time to time in Mpower's Securities and Exchange Commission filings.
