IXC Expands Business Unit with Coastal Acquisition

Posted: 07/1999

IXC Expands Business Unit with Coastal Acquisition

IXC Communications Inc., Austin, Texas, has expanded its retail division, Eclipse
Telecommunications Inc., with the completed acquisition of Coastal Telephone Co., Houston.
Announced in January, the transaction is valued at approximately $100 million.

The acquisition allows IXC to sell its broader product line into Coastal’s base of more
than 100,000 small business customers.

Coincident with the completion of the acquisition, Eclipse, which had relied on a
direct sales force, has launched an agent channel program, incorporating elements of
Coastal’s existing program. Coastal’s vice president, David Rosenfeld, has been named
director of alternate channels for Eclipse. Rosenfeld says the agent program will be
multipronged, focusing on aggressive rates and commissions for voice service agents and
advanced products for data services agents.