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 October 2, 2001
(Date of earliest event reported) (October 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 October 2, 2001, the Registrant issued the following press release:
CTC Introduces On-Net Dial Tone Voice Services in Maine
and 'Lights Up' its Maine Fiber Network
--Fiber Access and Packet Based Dial Tone and Voice Services
Now Available to Maine Customers--
WALTHAM, Mass.-Oct. 2, 2001-CTC Communications Group Inc. (NASDAQ NM:
CPTL)-- announced that it has completed all required interconnection and
certifications and has begun offering on-net dial tone and voice services
in Maine on a commercial basis. Additionally, the Company completed the
expansion of its regional fiber network into Maine and is currently
providing Maine customers with high-speed fiber access to its packet-based
PowerPath(SM) Network. Opening the Maine market to on-net dial tone voice
services and high-speed fiber on-net access further strengthens the
Company's plan to attain positive EBITDA in this year's December quarter.
Maine joins Massachusetts and New Hampshire as the third state where CTC
is offering packet-based dial tone and voice services. The Company is
implementing these services, on an area by area basis, progressively
across its Northeast and Mid-Atlantic states operating area, and expects
to complete implementation in the first quarter of 2002.
Dial tone, local voice services and switched long distance voice 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 has also extended its fiber network to Maine and is currently
providing fiber access in Portland, Bangor, Lewiston and Augusta. On-net
customers in these areas will utilize this high speed, fully redundant,
fiber access to CTC's PowerPath(SM) Network. Existing CTC customers in
these locations will be moved from currently leased interoffice facilities
to the Company's fiber and, all new network customers will utilize this
new fiber access to CTC's PowerPath(SM) Network.
CTC's fiber implementation is included in its fully funded business plan
and is one of the key components enabling the Company's attainment of
positive EBITDA by year end 2001. It reduces the Company's dependence on
leased interoffice facilities, improves provisioning intervals from
approximately 90 days to 30 days and significantly reduces network costs
by minimizing leased facility expense and improving operating efficiency.
The Company is progressively taking delivery of this dark fiber, "lighting
it up" using Cisco optronics and will be providing fiber access to its
network in over 60 locations throughout the New England and Mid-Atlantic
states by year end 2001.
Robert Fabbricatore, CTC's Chairman and CEO stated, "On-net local dial
tone voice services and fiber access to our Network are at the core of our
advanced packet-based technology and business plan. The addition of local
dial tone voice services to our on-net product portfolio establishes our
packet-based network as a lower cost, 100% replacement for today's legacy
voice, data and hybrid networks. Owning and operating the fiber in our
network reduce network costs, increases service quality and improves
provisioning and speed to market. Both drive margin improvement and
operations efficiency. When a customer's revenue moves from our resale
platform to our network platform, the margin doubles. When customer access
to the network is re-homed from leased facilities to CTC's fiber, CTC's
access cost for that customer is reduced by 40%. This is the fulfillment
of our long standing business model and the advanced technology we have
chosen. The Company continues on track to attain positive EBITDA in the
December Quarter and positive Net Income in the subsequent 12 to 18
months".
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. 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 the provision
of local dial tone voice services, the deployment and activation of fiber
access to the PowerPathSM network. reduced operating costs, migration of
customers on-switch, improved margins, and attainment of positive EBITDA.
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
781-466-1302 (t)
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 October 2, 2001.
CTC COMMUNICATIONS GROUP, INC.
By: /s/ John D. Pittenger
John D. Pittenger,
Executive Vice President, Finance and Administration