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 March 18, 2002
(Date of earliest event reported) (March 15, 2002)
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 March 15, 2002, the Registrant issued the following press release:
CTC Announces Further Deployment of its Fiber Network and Local Dial Tone
Services into Rhode Island
- --CTC's Local Dial Tone and Fiber Deployment is on Target with Current Plan
to be Completed by this Fall
- --Rhode Island is the Company's Fifth Market Where Packet-Based Local Dial
Tone is Now Available
- --CTC's Packet-Based PowerPath(sm) Network using CTC-Owned Fiber Lowers
Customer Costs and More than Doubles CTC Margins
Waltham, MA, March 15, 2002-CTC Communications Group Inc. (CTC)(Nasdaq NM:
CPTL)- announced it is now providing customers local dial tone services
through access to its high-speed fiber via the Company's packet-based
PowerPath(sm) Network for customers in Rhode Island.
Robert J. Fabbricatore, Chairman of the Board and Chief Executive Officer
of CTC reported that Rhode Island joins Maine, Massachusetts, New Hampshire
and Buffalo, New York, as the latest market where CTC is offering packet-
based local dial tone services. He stated that the Company is on schedule
in installing its fiber progressively throughout its current footprint in
the Northeast and Mid-Atlantic States. The Company will then add local dial
tone services in its target markets and expects that deployment will be
completed by this fall.
Mr. Fabbricatore stated "CTC is migrating its Rhode Island customer base
from currently leased interoffice facilities to the Company's owned fiber
and placing its new customers directly onto the Company's packet-based
PowerPath(sm) Network. CTC-owned fiber reduces the dependence on leased
interoffice facilities, improves provisioning intervals from up to 90 days
to approximately 30 days and significantly reduces network costs by
reducing and eliminating leased facility expense, while at the same time
improving operating efficiency. In addition, when a customer migrates from
our off net service to our fiber network, CTC is able to reduce our
customer costs while more than doubling the CTC margins on that revenue. It
is truly a win/win proposition for both our customers and the Company."
Fabbricatore continued, "Local dial tone services coupled with fiber
backbone facilities on our PowerPath(sm) Network are at the core of our
advanced packet-based technology and business plan. The addition of local
dial tone services in Rhode Island to our on-net product portfolio
establishes the CTC packet-based network as a lower cost, 100% replacement
for today's legacy voice, data and hybrid networks. When CTC offers local
services in a new area, new CTC customers have included the new service in
their contract more than 50% of the time and when local services are
chosen, 98% of the time they also select our long distance services."
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, called the PowerPath(sm) 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 589,000 access lines as of
December 31, 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 PowerPath(sm) Network. reduced operating costs, migration of
customers on-net, improved margins, attainment of positive EBITDA and
profitability. 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 10-Q. 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.
# # #
Finance Contact: John Pittenger
CTC Communications
781-466-1302 (t)
pitt@ctcnet.com (e)
www.ctcnet.com
Media Contact: Alan Russell
CTC Communications
781-466-8731 (t)
arussell@ctcnet.com (e)
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 March 18, 2002.
CTC COMMUNICATIONS GROUP, INC.
By: /s/ John D. Pittenger
John D. Pittenger,
Executive Vice President, Finance and Administration