UNIVERSAL ACCESS gets stuck in middle...P Shutt gone?
UNIVERSAL ACCESS gets stuck in middle: "UNIVERSAL ACCESS gets stuck in middleFeeling effects of telecom downturn that hurt clients
August 16, 2004
By H. Lee Murphy
Slumping demand and changing technology in the telecommunications industry landed UNIVERSAL ACCESS Global Holdings Inc. in Chapter 11 bankruptcy proceedings, following some of its best customers.
For instance, once-stalwart customers such as MCI Inc. have fallen into bankruptcy over the past year, creating a domino effect across the telecom industry.
'They were once a $3-million-a-month customer of ours,' says Universal CEO Randall R. Lay. 'Now that they've gone through bankruptcy they've reduced their spending on leased telecom network capacity.'
Universal acts as a middleman in the telecom industry, locating unused transmission capacity for those who need it in a hurry.
'If a carrier comes to us and needs four or five alternatives to complete a circuit, we can give them an answer within minutes,' Mr. Lay says.
But with so much excess capacity in the industry, wholesale pricing has gotten so low that there is little money left for middlemen like Universal. Moreover, new automated technology interconnects calls across competing transmission systems automatically, with no need for direction from Universal.
'Companies like UNIVERSAL ACCESS need to redefine themselves or move with the momentum of the marketplace if they want to continue independent,' says Daniel Klein, a senior analyst at Boston consulting firm Yankee Group.
Consolidation has been rampant in the telecom world lately, and Mr. Lay says Universal's directors would consider any offers. Universal hasn't turned a profit since going public"
June 14, 2003
Troubles mount at telecom firm
The turmoil continues at Universal Access Global Holdings Inc., a Chicago company that helps connect the networks of competing telecommunications carriers.
Co-founder Robert Pommer, a senior vice-president, resigned from the struggling firm Friday, one day after interim CEO Lance Boxer announced he will leave Universal Access on July 15, according to a federal filing. Mr. Boxer assumed the CEO duties formerly held by PATRICK SHUTT, a co-founder who resigned last November. Chief Financial Officer Randall Lay will run the company while its board seeks a new CEO.
posted by Jen @ 6:54 PM
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