SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report August 6, 2001
(Date of earliest event reported) (August 2, 2001)
CTC COMMUNICATIONS GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-27505 04-3469590
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
220 Bear Hill Rd., Waltham, Massachusetts 02451
(Address of principal executive offices) (Zip Code)
(781) 466-8080
(Registrant's telephone number including area code)
(Former name or former address if changed since last report)
Item 5. Other Events
On August 2, 2001, the Registrant issued the following press release:
CTC Completes Western Massachusetts Beta Trial and Expands its On-Net Dial
Tone Voice Service Offerings to Eastern Massachusetts
- --CTC Packet Based Dial Tone and Voice Services Now Available to all
Massachusetts Customers
WALTHAM, Mass.--Aug. 2, 2001-- CTC Communications (NASDAQ NM: CPTL)--
announced that beta testing of its PowerPath(SM) network dial tone and voice
services in western Massachusetts has been successfully completed and the
Company is offering these services on a commercial basis to western
Massachusetts customers.
The Company also announced it has completed all required interconnection and
obtained the certifications necessary to begin offering these on-net dial
tone and voice services to customers in eastern Massachusetts. The Company's
seven eastern Massachusetts branch offices and its headquarters' complex are
currently in the process of moving to its on-net dial tone and voice
services which will complete by August 15, 2001. The Company does not
require beta testing in eastern Massachusetts and will begin offering these
services to eastern Massachusetts' customers this month.
Eastern Massachusetts is the second marketplace where CTC is offering
packet-based dial tone and voice services. The Company will progressively
implement these services, on an area by area basis, across its Northeast and
Mid-Atlantic states operating area. Eastern Massachusetts will be followed
by New Hampshire, Rhode Island, Maine and New York with the remaining states
anticipated to complete progressively through the first quarter 2002.
Dial tone, local voice services and switched long distance services are
provided on the Company's packet based PowerPath(SM) network utilizing a
softswitch. The softswitch processes and connects voice calls within the
PowerPath(SM) network as well between the PowerPath(SM) network and the
Public Switched Telephone Network. On-net customers can place and receive
voice calls to and from any person served by any carrier in the world,
whether located next door or continents away. The Company currently has over
100 customers utilizing softswitch based voice services.
Robert Fabbricatore, CTC's Chairman and CEO stated, "CTC currently provides
dedicated long distance voice, data and Internet services to customers on
its PowerPath(SM) network, which represents about half of our customer's
telecommunications spend. As we progressively implement on-net dial tone
local voice services across our operating area, 100% of our resale customer
telecommunications spend becomes eligible to move to our network at a 10-35%
savings to the customer and 50% plus, incremental margin to the Company.
Although on-net dial tone local voice services are not necessary for the
Company to attain positive EBITDA in this year's December quarter, they are
a major on-net revenue and margin opportunity which begins now and will grow
progressively as we make these services available across our operating area.
Local dial tone voice services are the final step in our business plan and
establish our packet-based network as a lower cost, 100% replacement for
today's legacy voice, data and hybrid networks".
About CTC Communications
CTC is a rapidly growing "next generation" Integrated Communications Carrier
utilizing advanced technology and providing its customers with converged
voice, data, Internet and video services on a broadband, packet-based
network. The Company serves medium and larger business customers from
Virginia to Maine, which includes the most robust telecommunications region
in the world--the Washington D.C. to Boston corridor. CTC was managing more
than 535,000 access lines as of June 30, 2001.
CTC's Cisco Powered IP+ATM packet network and its 450 member sales and
service teams, provide contiguous marketing and technology coverage
throughout the Northeast and Mid-Atlantic States. The Company, through its
dedicated commitment to exceptional customer service, has achieved an
industry-leading market share in the Northeast and an access line retention
rate in excess of 99 percent. CTC can be found on the worldwide web at
www.ctcnet.com.
The statements in this press release that relate to future plans, events or
performance are forward-looking statements that involve risk and
uncertainties that could cause actual results to differ materially from
those reflected in the forward-looking statements including dial tone local
voice services implementation, the attainment of EBITDA positive results,
improved margins and existing resale customer movement to the network.
Readers are, accordingly, cautioned not to place undue reliance on these
forward-looking statements. Additional information about these risks and
uncertainties is set forth in the Company's most recent report on Forms 10-K
and 10Q. CTC undertakes no obligation to release publicly the results of any
revisions to these forward-looking statements that may be made to reflect
results, events or circumstances after the date hereof.
CONTACT: CTC Communications
John Pittenger
EVP and Chief Financial Officer
pitt@ctcnet.com
www.ctcnet.com
# # #
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized on August 6, 2001.
CTC COMMUNICATIONS GROUP, INC.
By: /s/ John D. Pittenger
John D. Pittenger,
Executive Vice President, Finance and Administration