Following regulatory approval, TelePacific will assume responsibility for service and support of O1 Communications' small to medium-size business (SMB) customers.
O1 Communications, a competitive local exchange carrier serving retail and wholesale business customers, announced it has
signed a definitive acquisition agreement to sell the company's retail
customer base to TelePacific Communications, a business
telecommunications provider in California and Las Vegas. O1
Communications will retain its wholesale customer base and its name,
the company said.
Under the terms of the agreement, following regulatory approval,
TelePacific will acquire O1 Communications' SMB (small and midsize
business) accounts and assets primarily dedicated to serving that
customer segment. The transaction will include purchase of O1
Communications' Sacramento data center. Going forward, O1
Communications said it would focus exclusively on its wholesale and
carrier business: O1's wholesale services include call origination,
call termination and SIP (session initiation protocol) peering
services, with new services in development.
TelePacific provides services through a combination of
TelePacific-owned switches and network infrastructure, including its
own and leased fiber-optic network assets. Offering local and long
distance voice, dedicated Internet access, private networking and data
transport services as well as bundled voice and Internet solutions and
wholesale services, TelePacific claims more than 39,000 customer
accounts with more than 1.1 million access lines in service.
"We believe this transaction is positive for all our customers," said
Brad Jenkins, CEO of O1 Communications.
"TelePacific has the network assets and resources to provide our SMB
customers the same high standards of support and service reliability
they previously experienced. The two companies will work closely
together to ensure a seamless transition for O1's SMB customers."
Following regulatory approval, TelePacific will assume responsibility
for service and support of O1 Communications' SMB customers. O1
Communications will continue operations from a new headquarters in El
Dorado Hills, Calif. Dick Jalkut, president and CEO
of TelePacific, said O1's SMB customer base is a
perfect fit for TelePacific as both companies share high standards for
customer service and support. "We are looking forward to serving these
new customers," Jalkut said.
In addition to acquiring the assets of the O1 SMB business, TelePacific
said it would also be offering employment to all SMB employees
upon close. "Our No. 1 goal is to make the transition as seamless
and successful as possible to our new customers which means giving them
the same experience and first-line support that they are used to on a
daily basis," Jalkut said. "We know that retaining the O1 employees are
our best resource for meeting this goal."
Nathan Eddy is Associate Editor, Midmarket, at eWEEK.com. Before joining eWEEK.com, Nate was a writer with ChannelWeb and he served as an editor at FierceMarkets. He is a graduate of the Medill School of Journalism at Northwestern University.