MPOWER HOLDING CORP

MPOWER HOLDING CORP

Previous company name

Name change date

Company Overview
Mpower Holding is an American holding company that, through its subsidiary, provides local and long distance voice services and Internet access and voice over internet protocol (VoIP) to small and medium-sized business customers. The company, with headquarters located in Pittsford, New York, was founded in 1996. Mpower Holding is the parent company of Mpower Communications Corp., a leading facilities-based broadband communications provider offering a full range of data, telephony, Internet access and network services for retail business and wholesale customers in California, Nevada, and Illinois. It also provides residential service in the Las Vegas area. Mpower’s service offering includes DSL Internet access, integrated voice and data via T1 lines, Web hosting, and Voice over Internet Protocol (VoIP). In 2006, Mpower Communications agreed to be acquired by the California-based, TelePacific Communications, which is a leading provider of business telecommunications network solutions providing local, long-distance, data and Internet services to small-to-medium sized businesses in California and Nevada.
Business Summary
Mpower Holding Corporation (Mpower) offers local and long distance voice services, as well as high-speed Internet access and voice over Internet protocol (VoIP) by way of a variety of broadband product and service offerings over its network of collocations, switches and fiber network. The Company’s offers services primarily to small and medium-sized business customers in all of its markets and residential customers primarily in the Las Vegas, Nevada, through its wholly owned subsidiary, Mpower Communications Corp. Mpower’s markets include Los Angeles, California; San Diego, California; Northern California (the San Francisco Bay area and Sacramento); Las Vegas, Nevada, and Chicago, Illinois. As of February 22, 2006, the Company has approximately 48,700 business customers and approximately 14,600 residential customers. On August 4, 2006, Mpower Communications Corp. completed its merger with U.S. TelePacific Holdings Corp.
Description and history
Mpower Holding Corporation (Mpower) offers local and long distance voice services, as well as high-speed Internet access and voice over Internet protocol (VoIP) by way of a variety of broadband product and service offerings over its network of collocations, switches and fiber network. The Company’s offers services primarily to small and medium-sized business customers in all of its markets and residential customers primarily in the Las Vegas, Nevada, through its wholly owned subsidiary, Mpower Communications Corp. Mpower’s markets include Los Angeles, California; San Diego, California; Northern California (the San Francisco Bay area and Sacramento); Las Vegas, Nevada, and Chicago, Illinois. As of February 22, 2006, the Company has approximately 48,700 business customers and approximately 14,600 residential customers. Mpower also bills a number of major local and long distance carriers for the costs of originating and terminating traffic on its network for its local service customers.

On January 1, 2005, Mpower acquired certain assets and assumed certain liabilities of ICG Communications, Inc. (ICG) in California. The assets acquired include ICG’s customer base and certain network assets in California, including a 1,412 route mile state-wide fiber ring and 915 miles of metropolitan fiber rings that connect 128 commercial buildings throughout major cities in California. In June 2005, Mpower entered into an asset purchase agreement with IDACOMM, a subsidiary of IDACORP, Inc., to acquire four strands of dark fiber within a fiber network that IDACOMM is constructing in Las Vegas, Nevada. This is a 141-route mile fiber network with three fully survivable rings. On August 4, 2006, Mpower Communications Corp. completed its merger with U.S. TelePacific Holdings Corp.

Data and Internet Services

The Company’s Internet protocol (IP) network infrastructure enables integration of business voice and data communications, and e-commerce applications, while streamlining business processes by way of VoIP. Mpower packages voice and data applications to provide value-added solutions from one provider, one point of contact and one invoice. The MpowerOffice service offering includes high-speed Internet access; voice lines; choice of call control services (unlimited features or Centrex); remote Internet access (three dialup accounts); and IP applications. The MpowerEnterprise service offering includes High-speed Internet access (1.544 Megabits per second (Mbps)); integrated services digital network (ISDN); choice of call control services, and long distance service.

With the acquisition of ICG, Mpower has accelerated its speed-to-market with IP Centrex and launched VoicePipe service. VoicePipe is an IP Telephony technology that converges (or combines) customers’ voice, data and long distance over a single connection. SDSL high-speed Internet uploads and downloads files at equally fast rates, providing Internet access at high speeds. The Company’s SDSL service offers equal upstream and downstream speeds of up to 1.5 Mbps. Unlike asymmetrical digital subscriber line, which only allows quick downloads, SDSL has the power to both receive and send large amounts of data at high speeds. SDSL can move data 50 times faster than a dial-up modem and 10 times faster than ISDN.

MpowerConnect is an Internet access with up to a full T1-worth of bandwidth. The Company’s product and service offering includes both integrated voice and data T1 packages, as well as a data-only T1 service. Delivered through a combination of telephone and data network facilities, MpowerConnect is designed to be predictable, stable and fully symmetric and feature speeds of up to 1.544 Mbps. Additional features, such as blocks of IP addresses, custom e-mail accounts, and Web Hosting are also available. Standard packages are available at either 768 Kilobits per second (kbps) or 1.544 Mbps Internet access speeds, with a variety of feature package upgrades and a la carte feature options.

Mpower OfficeScreen is a turn-key all inclusive managed security and virtual private network (VPN) solution for businesses that need secure connectivity for remote offices and mobile users for secure offices with up to 1,000 personal computers (PCs) going to the Internet concurrently and 100 VPN tunnels and/or remote clients. Mpower’s Internet access is designed for customers who normally need to rely on a specific amount of bandwidth above T1 speed, but may occasionally require more bandwidth due to traffic peaks.

Voice Services

The Company offers many combinations of voice services. A full suite of features and calling plans are also available. Voice services options include PRI, trunks, business voice services, Centrex, long distance service, calling card, business toll-free service, voice-mail, local operator services, long distance operator services, call control services, conference calling and long distance account codes.

PRI is a solution for businesses with high-call volumes, which include local service, 40 direct-dial numbers, caller identification (ID), flat-rate local and local-toll usage, low long distance rates, among other features. Trunks are digital voice communications with applications for call centers, general office use, smaller offices and sales offices. Business voice services include a number of custom calling features, local number portability, 911, directory and long distance information services. Standard features of Centrex include phone numbers for each employee, three-way calling and last number redial with additional features available.

Mpower provides long distance service across the United States and internationally. Using the Company’s calling cards, customers can make calls from anywhere. The business toll-free service provides toll-free phone numbers with no setup fees, monthly fees or minimums. Service options are available for United States, Canada and the Caribbean. The voice-mail service allows the Company’s customers to retrieve messages from any touch-tone phone, post greeting announcements and store messages for up to 30 days. The Mpower local operator services support analog business lines, digital trunks and ISDN PRI. The Company’s long distance operator services are provided for United States (1+ and Toll Free), international and calling card. Call control services includes a list of customer calling and Centrex features in addition to voice-mail and audio and Web conferencing. Mpower conference calling service provides automated 24/7 Reservationless Conferencing for virtual meetings around the clock. Long distance account codes group and track calls for accounting and billing purposes, and prevent unwanted long distance calls over your company’s phone lines.

Wholesale Products

Mpower PRI is a communications package for businesses with high-call volumes. It includes local service, 40 direct-dial numbers, caller ID, flat rate local and local-toll usage, low long distance rates, and other features. In Mpower Collocation, the Company provides managed collocation space to carriers to allow them to establish a presence in new markets quickly and cost effectively. Mpower Inbound PRI allows customers to manage incoming modem and voice traffic. It offers the features of caller ID, direct inward dialing (DID) and hunting. Mpower Private Line is a local and inter-city private line service that provides dedicated bandwidth between LATAs, cities, or buildings. Mpower Trunks provide digital voice communications that allow carriers to expand operations. Mpower UNE-P Solution is an alternative solution for unbundled network element platform resellers. It provides carriers with access to the Company’s facilities-based deep and dense network with POTS switching service distributed over 297 wire centers.

Business Line
Holding company that, through its subsidiary, provides local and long distance voice services and Internet access and voice over internet protocol (VoIP) to small and medium-sized business customers
Subsidiary

Advisor
DELOITTE & TOUCHE LLP
IPO date
5/1998
US SIC Code
4813
Company Address
Suite 300
175, Sully’s Trail
City province or state postal code
14534, PITTSFORD, NY
Phone: +1 716 218 6550
Fax: +1 716 218 0165
Country address: UNITED STATES OF AMERICA
Website url: www.mpowercom.com