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RHYTHMS WINS GROUNDBREAKING LINE-SHARING DECISION IN ILLINOIS Order Allows Broadband Communications Provider to Reach More Customers, Scale Faster
ENGLEWOOD, Colo., August 24, 2000 — Rhythms
NetConnections Inc. (Nasdaq: RTHM) today announced its support for the
Illinois Commerce Commission's line-sharing arbitration decision, allowing
the company to serve more customers with its industry-leading, high-speed
Internet access connections much faster in SBC Communications Inc.'s
Illinois territory. The decision ensures Rhythms' right to place its own
line cards in SBC's "Project Pronto" remote terminals, enabling the
company to provide line-shared services to customers served by fiber
loops. This will allow Rhythms to greatly expand its market reach for
high-speed services, scale much more rapidly, and give its customers a
more robust service offering.
This is the first time a state commission has issued such an order. In
addition, continuing a national trend, the decision established an interim
zero dollar charge for line-shared loops, shortened line-provisioning
intervals, and gives Rhythms access to SBC's Illinois back office systems.
"This decision greatly improves our ability to reach more customers
with high-speed offerings and to scale much faster in SBC's Illinois
territory," said Jeffrey Blumenfeld, chief legal officer and general
counsel of Rhythms. "By placing our own cards in SBC's remote terminals,
we can provide our own service and give customers greater flexibility and
more features. This is a significant win for Rhythms and for consumers who
want a choice for their broadband services."
Rhythms, an international provider of broadband communication services,
achieved these results as part of a joint arbitration petition. The
company will benefit immediately from the zero dollar recurring charge for
a line-shared loop. Permanent pricing, as well as any pricing "true up,"
will be decided in a full cost case before the Illinois Commerce
Commission late this year or early next.
Rhythms has negotiated line-sharing agreements with all of the major
incumbent local exchange carriers, and numerous state public utilities
commissions are presently considering costing and operational issues
regarding the implementation of line-shared services.
Line sharing will enable customers to order digital subscriber line
(DSL) services without having to install a second line. Customers will
also enjoy the convenience of being able to install the line-sharing
equipment themselves, eliminating the need for a professional installer to
visit their home or business.
"The incumbent local exchange carriers (ILECs) have been using line
sharing for years, putting competitive providers at a disadvantage," said
Blumenfeld. "This and previous line-sharing decisions significantly
improve our ability to provision lines, helping to level the playing field
with the ILECs."
Rhythms' services include high-speed connections to the Internet and
private networks at speeds ranging from 144 kbps to 7.1 Mbps. Rhythms'
customers include Internet service providers, telecommunications carriers
and broadband communication services resellers.
About Rhythms
Rhythms NetConnections Inc. (Nasdaq: RTHM) provides DSL-based,
broadband communication services to businesses and consumers. Based in
Englewood, Colo., Rhythms currently serves 56 markets, covering 93 MSAs.
Telecommunications services for Rhythms are provided by Rhythms Links
Inc., a wholly owned subsidiary of Rhythms. For more information, call
1-800-RHYTHMS (1-800-749-8467), or visit the company's Web site at http://www.rhythms.com/.
Contacts: ####
This news release may contain forward-looking statements that involve
risks and uncertainties. Actual results may differ materially because of
various risks. These risks include risks associated with the demand and
competition for the services and products to be sold by Rhythms, the
continued availability of adequate financing to support our activities,
the timing of rollouts in additional regions, the number of potential
customers who could access such services, and our dependence on third
parties for services such as providing collocation and transmission
facilities, providing marketing and sales efforts, and supplying and
installing equipment. For an expanded discussion on these and additional
risks associated with Rhythms' business, please see the documents filed by
Rhythms NetConnections Inc. with the U.S. Securities and Exchange
Commission. | ||
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