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Paetec


Based in Fairport, NY, PaeTec Communications, Inc. is an integrated communications provider offering local, domestic, and international long distance services, high-speed Internet access, advanced data services, and communications management services to medium, and large-sized businesses, colleges and universities, hospitals, governmental organizations, and affinity groups throughout the United States. PaeTec currently serves customers in over 27 markets, including: Albany, Baltimore, Boston, Buffalo, Connecticut, Long Island, Los Angeles, Miami, New Hampshire, New York City, New Jersey, Orange County, Philadelphia, Rhode Island, Rochester, San Diego, Northern Virginia, Syracuse, Washington DC, Chicago, Pittsburgh and Western Massachusetts. PaeTec is a privately held company and has more than 950 employees nationwide.

PaeTec Vision
The company vision is to be the nation's most customer- and employee-oriented integrated communications provider. Exceeding customer expectations and bringing a higher set of customer service standards to the telecommunications industry is our key objective

PaeTec Culture
PaeTec's culture is one in which employees look forward to excelling at their jobs and our customers look forward to interacting with our employees. Every employee of PaeTec is a part owner, thus creating an operating environment where teamwork and consideration for customer concerns naturally occur.

Market Strategy
PaeTec targets medium and large sized end users of telecommunications services including businesses, institutional customers, large affinity groups of commercial and residential customers, and information service providers, including Internet service providers. The revenue from the retail business will be derived from both end-user usage and monthly recurring charges, as well as originating and terminating carrier access. In addition to the retail business, PaeTec will sell wholesale local and long distance to other carriers. It is anticipated that the majority of the wholesale long distance business will be international traffic.

PaeTec will operate in 24 select first and second tier markets throughout the United States. So far, the company has switches deployed in:

  • Albany, New York
  • Northern Virginia
  • Boston, Massachusetts
  • Upstate, New York
  • South Florida
  • New York, New York
  • Pennsylvania
  • Rochester, New York
  • Verizon Territory in California
  • PacBell Territory in California
  • Chicago, Illinois
  • Connecticut
  • Washington DC
  • Delaware
  • Maryland
  • New Hampshire
  • New Jersey
  • Rhode Island

    Network Strategy

    PaeTec is purchasing and deploying a state-of-the-art local telephone exchange network utilizing Lucent Technology's 5ESS-2000 digital switching platforms throughout it’s operating areas. This leading edge technology enables PaeTec to offer virtually all, basic and enhanced features currently available in the marketplace. This switching platform also offers the ability to expand switch capacity in a rapid and cost effective manner and provide new services as technology produces them. Plus, by owning and maintaining its own local switches, PaeTec is better able to provide cost effective and customized solutions for its customers' telecommunications needs.

    In developing a transport network, PaeTec will initially lease fiber optic and/or wireless transmission capacity from competitive access providers ("CAPs") and ILECs. By leasing its initial transmission capacity, PaeTec will be able to reduce the up-front capital expenditures required to enter new markets, enter new markets more rapidly, and generate positive cash flows more quickly than if it first constructed its own transmission capabilities.

    For its long distance network, PaeTec utilizes both switched services and switchless resale of long distance service to provide a seamless nationwide offering. The company will obtain international wholesale service from STAR Telecommunications Inc. via dedicated facilities, and is negotiating for the most competitive domestic products from other nationwide wholesalers.

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