Mpower Communications Business Model Supported by
FCC Triennial Review Order Decision
ROCHESTER, NY
December 15, 2004 Mpower Communications Corp.
(AMEX:MPE),
a leading provider of broadband Internet access and telephone services to business customers, commented on today’s decision by the Federal Communications Commission (FCC) to preserve facilities-based competitive local exchange carriers’ access to ILEC network elements.
As a strictly facilities-based provider that has its own network of switches, collocation facilities and SONET fiber rings, Mpower uses unbundled ILEC loops to connect to its own network to provide voice and high-speed data services to nearly 75,000 customers in the states of California, Illinois and Nevada.
The FCC did eliminate the availability of the unbundled network element platform (UNEP) as well as scaled back other UNEs. However, as a facilities-based provider that predominately uses DS-0 and DS-1 loops from the ILEC, based on today’s announcement by the FCC, Mpower expects very few of its UNE loops and transport to be impacted by this decision.
Mpower has been following this proceeding for several years and has taken available measures to mitigate the effect of the FCC’s restrictions on unbundling of certain UNEs. Moreover, given its current network and the fiber network it is acquiring from ICG, Mpower believes that this ruling may create additional wholesale opportunities for Mpower to sell switching, loops and high capacity access to carriers that are dependent on the ILECs for several of these services.
“Our core strategy has always been to rely on the monopoly phone companies as little as possible, and today the FCC has reinforced the value of Mpower’s investment in owning our own switching, collocation and fiber infrastructure,” commented Mpower Communications Chairman and Chief Executive Officer Rolla P. Huff. “We believe those companies that have not built deep and dense networks will be adversely affected by these rules and will be at the mercy of the monopolies in order to provide service to their customers.”
Added Huff, “We are also extremely pleased that all DS-0s and substantially all DS-1 loops will continue to be available to Mpower by law at TELRIC rates. In doing so, the FCC has provided additional endorsement of our recently announced acquisition of ICG’s California business and statewide fiber optic network. These new rules appear to be a significant step forward in the continual pursuit of true telecommunications deregulation and facilities-based competition, and we are anxious to review the more detailed order on this matter.”
About Mpower Holding Corporation
Mpower Holding Corporation (AMEX:MPE)
is the parent company of Mpower Communications, a leading facilities-based broadband communications provider offering a full range of data, telephony, Internet access and Web hosting services for small and medium-size business customers. Further information about the company can be found at
www.mpowercom.com.
Forward-Looking Statements
Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, certain statements contained in this press release regarding our and/or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. These forward-looking statements are not historical facts and are only estimates or predictions. Actual results may differ materially from those projected as a result of risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information, or otherwise.
Mpower Communications Investor Contact:
|
Mpower Communications Media Contact:
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| Gregg Clevenger |
Michele Sadwick |
| Chief Financial Officer |
Vice President |
| 585.218.6547 |
585.218.6542 |
| invest@mpowercom.com |
msadwick@mpowercom.com |

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