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 July 11, 2002
(Date of earliest event reported) (July 10, 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
(a) On July 10, 2002, the Registrant issued the following press release:
"CTC Communications Comments on Recent Industry Announcements
- -Company Responds to Recent Announcements by Major Carriers on Deployment Of
Packet Switching Within Their Networks-
Waltham, MA, July 10, 2002-CTC Communications Group Inc. (CTC)(NASDAQ NM:
CPTL) commented on recent announcements by major carriers on their recent
decision to use packet switching within their networks.
CTC has been providing toll calling, data and Internet services for
businesses on the Company's packet switched PowerPath(R) Network since 1999
and in 2001 began providing local dial tone services for businesses on the
PowerPath(R) Network using softswitch technology. The Company's network,
called the PowerPath(R) Network, is a Cisco Powered packet switched network
utilizing softswitch technology by Telcordia Technologies. Packet switching
is a replacement for traditional circuit switching architectures and allows
voice and data traffic to be carried together in distinct "packets" using a
single broadband connection and has been referred to as "next generation
technology".
Robert J. Fabbricatore, Chairman of the Board and Chief Executive Officer of
CTC,"CTC set out three years ago to build the network of the future, a
network that would fulfill the expectations of the 1996 Telecommunications
Act. The CTC PowerPath(R) Network stands today as a 100% replacement for
legacy networks that use circuit switching technology. We are pleased to see
the general acceptance of packet switching by several domestic and worldwide
carriers and CTC believes that this acceptance validates CTC's original
decision in 1999 to utilize packet switching technology."
Fabbricatore continued, "There is no longer a question on whether packet
switching can replace services provided on legacy networks. In addition, no
one questions the benefits of packet versus circuit switching and industry
analysts estimate that networks built on packet switching can save
approximately 50% on capital required to build and run a network. Analysts
also agree that there can be substantial savings on network operating costs
and CTC is proving that it can be done and is passing savings on to its
business customers. Our competitors are now publicly confirming the
efficiencies of packet switching, reporting that packet switching will allow
them to provide high quality services they have today, and realize
efficiencies which do not exist in today's circuit-switching environment."
Fabbricatore concluded, "The ultimate benefit of these more efficient and
scalable packet based networks is that customers save on their monthly
communication bills. Today, CTC's customers are realizing the benefits of
competition in the marketplace brought on by the 1996 Telecommunications Act
and are saving from 15-40% using our PowerPath(R) Network to converge voice,
data and Internet traffic. CTC's customers are taking advantage of the
benefits of packet switching today and because of our PowerPath(R) Network,
they are now properly positioned for the future of IP based communications."
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(R) 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 607,000 access lines as of March 31,
2002.
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 validation
of packet switching technology, efficiencies and, the cost savings
associated with packet switching, reduced costs to customers and reduced
Company operating costs, migration of customer's on-net and improved margins
and achieve forecasted numbers and become a successful and profitable
organization. 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 Media Contact:Alan Russell
CTC COMMUNICATIONS CTC COMMUNICATIONS
781-466-1302 (t) 781-522-8731 (t)
pitt@ctcnet.com arussell@ctcnet.com
www.ctcnet.com www.ctcnet.com"
(b) On July 11, 2002, the Registrant issued the following press release:
"CTC Communications Now Offering Ethernet Based Internet Access to its
PowerPath(R) Network
- -TelAnalysis Improves Internet Performance and Saves Money
Using CTC for their Internet Access-
Waltham, MA, July 11, 2002-CTC Communications Group Inc. (CTC)(NASDAQ NM:
CPTL) announced today it is now able to provide customers an Ethernet based
Internet connection to the Company's packet-switched PowerPath(R) Network.
The Company reported that there are several benefits to customers in using
the available Ethernet port for high-speed Internet access:
- -Eliminates the need to purchase and maintain a router for Internet access
- -Limits customer expenses to a one time charge for firewall protection
- -Provides scalable bandwidth from 64 kilobits per second to10 Megabits per
second without additional equipment charges
- -Provides business customers with the ability to create a virtual private
network to connect to their remote or vendor locations
Frank Ball from TelAnalysis, a CTC customer and leading East Coast
Telecommunications Consulting Firm, commented on the selection of CTC for
their network services. "We are very pleased that we could get a high speed
Ethernet connection without the requirement of purchasing a new router for
our Internet access. In addition, we were looking for a solid provider that
would be there for TelAnalysis after the last three Internet providers we
have used are no longer in business. Since we have connected to CTC's
PowerPath(R) Network, our Internet service has far exceeded the performance
we had with our old Internet provider's and CTC's installation of the new
service was flawless. More importantly, TelAnalysis has a local CTC point
of contact for all of our communications and we receive all of our services
on a single bill, which is invaluable to our organization."
Steve Milton, President and Chief Operating Officer of CTC commented on
today's announcement, "Customers like TelAnalysis have been looking for an
alternative to traditional Internet connections that requires the customer
to purchase another router or force them to use a lower end Internet service
such as DSL or Cable. CTC's Ethernet based Internet is the answer to our
customer concerns in this area, removing the need for an additional router
just for Internet access and providing a secure and scalable high-speed
Internet connection that most businesses require today. As Frank Ball
explained, this latest service offering is another step in improving our
business customers' communication requirements while keeping a close eye on
all equipment and network expenses associated with making network changes.
As a result, acceptance of this service has been strong in our markets from
Maine to Virginia."
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(R) 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 607,000 access lines as of March 31,
2002.
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 possible
benefits of Ethernet based Internet service and reduced costs to customers.
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 Media Contact:Alan Russell
CTC COMMUNICATIONS CTC COMMUNICATIONS
781-466-1302 (t) 781-522-8731 (t)
pitt@ctcnet.com arussell@ctcnet.com
www.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 July 11, 2002.
CTC COMMUNICATIONS GROUP, INC.
By: /s/ John D. Pittenger
John D. Pittenger,
Executive Vice President, Finance and Administration