FCC Releases Reciprocal Compensation Decision

Pac-West Telecomm Endorses Decision



Apr 19, 2001, 01:00 ET from Pac-West Telecomm, Inc.

    STOCKTON, Calif., April 19 /PRNewswire/ --
 Pac-West Telecomm, Inc. (Nasdaq: PACW), a rapidly growing provider of
 integrated communications services to Internet service providers (ISPs) and
 business customers throughout the western U.S., today announced its
 endorsement of the Federal Communications Commission's (FCC) adoption of new
 rules clarifying reciprocal compensation.  The FCC decision provides price
 certainty for the next three years, during which a Notice of Proposed
 Rulemaking (NPRM) concerning a Unified Intercarrier Compensation Regime will
 be conducted.
     Today's decision is viewed as a positive result for Internet users,
 consumers, and competitive local exchange carriers (CLECs), such as Pac-West.
 John Sumpter, Pac-West's Vice President of Regulatory, said, "Pac-West is very
 pleased with the FCC's validation that reciprocal compensation is the most
 equitable means of compensating all parties involved in completing a call.  We
 look forward to clarifying certain provisions, and working toward a successful
 implementation of the order."
     Reciprocal compensation was established in the 1996 Telecom Act as fair
 and appropriate compensation for the costs incurred in terminating traffic
 from external networks.  Today's announcement provides initial guidance and
 clarity on the recognition of reciprocal compensation for the duration of the
 NPRM.  Full details of the FCC decision are anticipated in the coming weeks.
     Wally Griffin, Pac-West's President and CEO said, "It has always been
 Pac-West's position that the only long term solution to intercarrier
 compensation is to ensure reciprocal compensation rates accurately reflect the
 costs involved.  Pricing at cost creates a level playing field, encouraging
 competition and rewarding those who are able to provide the best service at
 the lowest cost.  Pac-West has proven this by providing unique products,
 exceptional service, and competitive prices to our growing customer base while
 achieving outstanding financial performance for our investors.  We are pleased
 that today's ruling provides clarity and support for our business model."
     Griffin continues, "On the surface, we believe today's FCC decision
 addresses three issues that have faced Pac-West, the CLEC industry, and its
 investors.  These three issues are:  clarity of rules governing this traffic;
 a recognition that compensation for terminating this traffic should be
 cost-based; and, recognition that an overhaul of the entire system of
 intercarrier compensation is necessary and will be addressed in the Notice of
 Inquiry issued today by the FCC."
 
     About Pac-West Telecomm, Inc.
     Founded in 1980, Pac-West Telecomm, Inc. is a rapidly growing provider of
 integrated communications services throughout the western U.S.  Pac-West
 supplies Internet infrastructure and broadband services to Internet service
 providers (ISPs), and integrated voice, data, and Internet services to small
 and medium-sized businesses.  The company currently has operations in
 California, Nevada, Washington, Colorado, Utah and Arizona, and is rapidly
 expanding its network into other western states.  Pac-West is a Safeguard
 Scientifics (NYSE:   SFE) partner company.  For more information, please visit
 the company's web site at www.pacwest.com.
 
     Forward-Looking Statements
     The foregoing discussion contains forward-looking statements.  The
 Company's future performance is subject to numerous risks and uncertainties
 that could cause actual results to deviate substantially from those discussed
 in these forward-looking statements.  Factors that could impact the
 variability of future results include:  successful execution of the Company's
 expansion activities into new geographic markets on a timely and
 cost-effective basis; the pace at which new competitors enter the Company's
 existing and planned markets; competitive responses of the Incumbent Local
 Exchange Carriers; execution of interconnection agreements with Incumbent
 Local Exchange Carriers on terms satisfactory to the Company; maintenance of
 the Company's supply agreements for transmission facilities; continued
 acceptance of the Company's services by new and existing customers; the
 outcome of legal and regulatory proceedings regarding reciprocal compensation
 for Internet-related calls and certain of the Company's product offerings; the
 ability to attract and retain talented employees; and the Company's ability to
 successfully access markets, install switching electronics, and obtain the use
 of leased fiber transport facilities and any required governmental
 authorizations, franchises and permits, all in a timely manner, at reasonable
 costs and on satisfactory terms and conditions, as well as regulatory,
 legislative and judicial developments that could cause actual results to
 differ materially from the future results indicated, expressed or implied, in
 such forward-looking statements.  These and other factors are discussed in the
 Company's Prospectus dated November 3, 1999, and in its Annual Report as of
 December 31, 2000 on Form 10-K as filed with the SEC.
 
 

SOURCE Pac-West Telecomm, Inc.
    STOCKTON, Calif., April 19 /PRNewswire/ --
 Pac-West Telecomm, Inc. (Nasdaq: PACW), a rapidly growing provider of
 integrated communications services to Internet service providers (ISPs) and
 business customers throughout the western U.S., today announced its
 endorsement of the Federal Communications Commission's (FCC) adoption of new
 rules clarifying reciprocal compensation.  The FCC decision provides price
 certainty for the next three years, during which a Notice of Proposed
 Rulemaking (NPRM) concerning a Unified Intercarrier Compensation Regime will
 be conducted.
     Today's decision is viewed as a positive result for Internet users,
 consumers, and competitive local exchange carriers (CLECs), such as Pac-West.
 John Sumpter, Pac-West's Vice President of Regulatory, said, "Pac-West is very
 pleased with the FCC's validation that reciprocal compensation is the most
 equitable means of compensating all parties involved in completing a call.  We
 look forward to clarifying certain provisions, and working toward a successful
 implementation of the order."
     Reciprocal compensation was established in the 1996 Telecom Act as fair
 and appropriate compensation for the costs incurred in terminating traffic
 from external networks.  Today's announcement provides initial guidance and
 clarity on the recognition of reciprocal compensation for the duration of the
 NPRM.  Full details of the FCC decision are anticipated in the coming weeks.
     Wally Griffin, Pac-West's President and CEO said, "It has always been
 Pac-West's position that the only long term solution to intercarrier
 compensation is to ensure reciprocal compensation rates accurately reflect the
 costs involved.  Pricing at cost creates a level playing field, encouraging
 competition and rewarding those who are able to provide the best service at
 the lowest cost.  Pac-West has proven this by providing unique products,
 exceptional service, and competitive prices to our growing customer base while
 achieving outstanding financial performance for our investors.  We are pleased
 that today's ruling provides clarity and support for our business model."
     Griffin continues, "On the surface, we believe today's FCC decision
 addresses three issues that have faced Pac-West, the CLEC industry, and its
 investors.  These three issues are:  clarity of rules governing this traffic;
 a recognition that compensation for terminating this traffic should be
 cost-based; and, recognition that an overhaul of the entire system of
 intercarrier compensation is necessary and will be addressed in the Notice of
 Inquiry issued today by the FCC."
 
     About Pac-West Telecomm, Inc.
     Founded in 1980, Pac-West Telecomm, Inc. is a rapidly growing provider of
 integrated communications services throughout the western U.S.  Pac-West
 supplies Internet infrastructure and broadband services to Internet service
 providers (ISPs), and integrated voice, data, and Internet services to small
 and medium-sized businesses.  The company currently has operations in
 California, Nevada, Washington, Colorado, Utah and Arizona, and is rapidly
 expanding its network into other western states.  Pac-West is a Safeguard
 Scientifics (NYSE:   SFE) partner company.  For more information, please visit
 the company's web site at www.pacwest.com.
 
     Forward-Looking Statements
     The foregoing discussion contains forward-looking statements.  The
 Company's future performance is subject to numerous risks and uncertainties
 that could cause actual results to deviate substantially from those discussed
 in these forward-looking statements.  Factors that could impact the
 variability of future results include:  successful execution of the Company's
 expansion activities into new geographic markets on a timely and
 cost-effective basis; the pace at which new competitors enter the Company's
 existing and planned markets; competitive responses of the Incumbent Local
 Exchange Carriers; execution of interconnection agreements with Incumbent
 Local Exchange Carriers on terms satisfactory to the Company; maintenance of
 the Company's supply agreements for transmission facilities; continued
 acceptance of the Company's services by new and existing customers; the
 outcome of legal and regulatory proceedings regarding reciprocal compensation
 for Internet-related calls and certain of the Company's product offerings; the
 ability to attract and retain talented employees; and the Company's ability to
 successfully access markets, install switching electronics, and obtain the use
 of leased fiber transport facilities and any required governmental
 authorizations, franchises and permits, all in a timely manner, at reasonable
 costs and on satisfactory terms and conditions, as well as regulatory,
 legislative and judicial developments that could cause actual results to
 differ materially from the future results indicated, expressed or implied, in
 such forward-looking statements.  These and other factors are discussed in the
 Company's Prospectus dated November 3, 1999, and in its Annual Report as of
 December 31, 2000 on Form 10-K as filed with the SEC.
 
 SOURCE  Pac-West Telecomm, Inc.