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 Channel Futures

Telephony/UC/Collaboration


NEWS BRIEFS

  • Written by Channel
  • May 31, 2007

Wholesale service provider Pac-West Telecomm Inc. filed for Chapter 11 bankruptcy on May 1. The beleaguered company has secured $18.5 in debtor-inpossession financing to fund operations during reorganization. Pac-West has watched revenue from ISPs decline as it simultaneously has spent millions building out its network. It also sold its retail business to TelePacific Communications in March 2005, eliminating another revenue stream. The news was not wholly unexpected. SEC filings show the carrier has struggled for the past couple of years.

Vonage Holdings Corp. got a break April 24 as a federal appeals court said the embattled IP telephony provider may continue adding new subscribers. Vonage in early March lost a patent infringement suit brought by Verizon Communications Inc. On March 23, the trial court judge barred Vonage from adding new customers. Hours later, however, the appeals court granted an emergency stay of that injunction and it issued a permanent stay. Now, Vonage and Verizon must prepare for oral arguments on June 25 when the Federal Circuit Court of Appeals will hear both sides rationale regarding Vonages request for a new trial.

In mid-April, a jury found former Qwest Communications International Inc. CEO Joe Nacchio guilty on 19 of 42 counts of illegal insider trading. Jury deliberations took six days. Nacchio now faces up to 10 years in prison and a $1 million fine for each of the 19 guilty counts. Federal prosecutors contended Nacchio took part in insider trading for sales of $100.8 million in Qwest stock between Jan. 2, 2001, and May 29, 2001. Nacchio has repeatedly denied any wrongdoing.

Links
D. E. Shaw & Co. L.P. www.deshaw.com
IPcelerate www.ipcelerate.com
Pac-West Telecomm Inc. www.pacwest.com
Qwest Communications International Inc. www.qwest.com
TelePacific Communications www.telepacific.com
Verizon Communications Inc. www.verizon.com
Vonage Holdings Corp. www.vonage.com

Tags: Agents Telephony/UC/Collaboration

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