Eschelon Telecom (NASDAQ:ESCH)
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Eschelon Telecom, Inc., (NASDAQ:ESCH) a leading provider of integrated
communications services to small and medium sized businesses in the
western United States, today announced the additional Voice Over
Internet Protocol (VoIP) product capabilities to its network. The new IP
applications will leverage the existing network infrastructure and will
be available in addition to existing TDM products.
Dan Wigger, Eschelon’s Vice President of
Engineering, who led the product development effort said, “Eschelon
is not first to market with this kind of product offering and that was a
strategic choice. As with any new technology, the hype of VoIP promised
more than the initial products could deliver. By waiting, we are now
able to deliver a rock-solid product that has been thoroughly tested and
will meet our aggressive network performance standards.”
The VoIP technology will add a “variable
bandwidth” capability to Eschelon’s
successful Precision FlexPak product line. This means customers will be
able to use the entire 1.5Mb of available bandwidth on their T-1 circuit
for dedicated Internet traffic when no voice calls are in progress. “We
are offering this capability as an option to FlexPak rather than making
VoIP our only delivery method as some carriers have decided to do,”
commented Jon Secrest, Eschelon’s Vice
President of Marketing. “Some carriers
believe that a VoIP-only strategy will eventually lower their network
costs but we don’t see it that way. This is a
great technology, but it is not the best solution for every customer. By
offering both VoIP and TDM-based solutions, we’ll
be able to help the customer choose the best solution for their business
communication needs – that is key to our
product strategy.”
“I’m extremely
proud of the team of Eschelon Associates who brought this product to
market,” added Richard A. Smith, Eschelon’s
Chief Executive Officer. “At the beginning of
this year we announced an aggressive timeline for the introduction of
this product and we beat it! This is a remarkable accomplishment
considering we were simultaneously executing multiple integration
projects with acquired companies and significantly expanding our network
reach into three new markets during the first half of the year. I love
the way we have leveraged our high quality TDM network and added a VoIP
platform to it – certainly a capital
efficient approach.”
The VoIP product capability will be initially launched in Minneapolis
with subsequent launches scheduled for Denver and Phoenix by the end of
the third quarter.
About Eschelon Telecom, Inc.
Eschelon Telecom, Inc. is a facilities-based competitive communications
services provider of voice and data services and business telephone
systems in 53 markets in the western United States. Headquartered in
Minneapolis, Minnesota, the company currently employs approximately
1,470 telecommunications/Internet professionals, serves over 65,000
business customers and has approximately 655,000 access lines in service
throughout its markets in Minnesota, Arizona, Utah, Washington, Oregon,
Colorado, Nevada, Montana and California. For more information, please
visit our web site at www.eschelon.com
Forward Looking Statements
This announcement contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. The
forward-looking statements are based on Eschelon Telecom’s
current intent, belief and expectations. These statements are not
guarantees of future performance and are subject to certain risks and
uncertainties that are difficult to predict. Actual results may differ
materially from these forward-looking statements because of the company’s
history of losses, ability to maintain relationships with RBOCs,
substantial indebtedness, intense competition, dependence on key
management, changes in government regulations, and other risks that may
be described in the company’s filings with
the Securities and Exchange Commission. In particular, statements
regarding the consummation of the merger are subject to risks that the
conditions to the transaction will not be satisfied. In addition, our
results of operations, financial condition and cash flows also may be
adversely impacted by the recent announcement of the proposed
transaction, which may impact our ability to attract and retain
customers, management and employees. We have incurred and will continue
to incur significant advisory fees and other expenses relating to the
transaction. Existing and prospective investors are cautioned not to
place undue reliance on these forward-looking statements, which speak
only as of today’s date. Eschelon Telecom
undertakes no obligation to update or revise the information contained
in this announcement, whether as a result of new information, future
events or circumstances or otherwise.