Pipeline Q&A (cont'd)

Pipeline: This new strategy helped jumpstart ICG again, but ICG eventually faced the possibility of another Chapter 11. What happened?
ICG: When ICG's largest customer, Qwest, bought out its multi-year, managed modem services contract in October of 2003, it became evident that further divestiture of assets, and substantial mitigation of costs and debt would be required to keep the company from filing for bankruptcy again in 2004. ICG sold its managed modem customer base to Level 3 in April 2004, but was still in danger of filing for what would have been its second bankruptcy when M/C Venture Partners and Columbia Capital arranged to purchase the company, thereby overhauling the existing management team, taking the company private, and initiating and completing a number of highly successful debt and cost reduction initiatives. During that time the California and Texas regions were sold as was the company's SS7 customer base.

Pipeline: What is ICG's current focus?
ICG: We have, in effect, shrunk the number of regions in which ICG's business will be focused; however, growth is likely to occur into other markets synergistic to its existing markets, but only as such growth proves profitable in the short-term. We are currently addressing the needs of a smaller, multi-regional focus where ICG has strong financials, network presence, and is likely the strongest CLEC. ICG's business focus lies squarely on its ability to be the dominant CLEC in the markets in which it remains, and indeed this is highly likely.

Pipeline: In which markets do you currently have a strong presence?
ICG: Most notably, ICG's fiber network from Pueblo to Fort Collins/Greeley is by far superior to that of any other in the Front Range, and certainly a peer to that of the incumbent, Qwest. ICG also has a unique long-haul fiber footprint that extends from Cleveland through Akron, Columbus, Dayton, and Cincinnati, continuing on to Indianapolis and Louisville-no other providers in the industry are able to provide this footprint today.

Pipeline: What services will be ICG's calling card going forward?
ICG: Our VoIP product is one of the more familiar VoIP brands in U.S. telecommunications and has proven to be a highly effective, next-gen solution for enterprise and small business customers' voice and data needs. Voicepipe is an IP-based converged service which meets most customer needs via a one "pipe" solution.

Pipeline: How have your vendor relationships been effected by ICGs bankruptcy?
ICG: Substantial progress has been made in the past six months to resolve outstanding issues with vendors, including the RBOCs, other access and telecommunications service providers, equipment vendors, landlords, property managers, and other service vendors. ICG has done this without the protection of bankruptcy, which results in a far better future relationship with each of these providers.

Pipeline: What types of vendor relationships is ICG considering now?
ICG: As part of ICG's focus on profitability and doing only that in which the company excels, it is employing third-party providers for product support functions and equipment; where it is finding favorable pricing. The company is also in discussions with vendors who have solutions that will enhance our TDM/DWDM backbone capabilities to support additional products and services over it more efficiently, such as Ethernet over SONET.

Pipeline: From a financial standpoint, how does the future look for ICG?
ICG: ICG is now virtually debt free, has more than $10 million in cash, is cash-flow positive and trending to even better financials by year's end, a considerable achievement considering the company was experiencing an $8 million per month cash burn just 9 months ago.

Pipeline: Where do you see ICG in the long term?
ICG: We are always looking for ways to create synergy between vendor/customer relationships; seeking to develop relationships with customers from whom ICG can purchase services cost-effectively and also seeking revenue opportunities with the vendors with whom ICG does business. Such relationships often evolve into long-term win/win outcomes for both parties and that will also be part of the ICG's long-term focus.

Our focus is, plainly spoken, on making money for its investors through the substantial sale of profitable products and services, not solely through the kinds of markers that used to drive the CLEC industry.

« Previous   |   1   |   2   |   Subscribe

Send Comment

© 2005, All information contained herein is the sole property of Pipeline Publishing, LLC. Pipeline Publishing LLC reserves all rights and privileges regarding the use of this information. Any unauthorized use, such as copying, modifying, or reprinting, will be prosecuted under the fullest extent under the governing law.