• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Complaint Against Level 3 Over Non-Payment Advances at the California Public Utilities Commission

Posted on: Wednesday, 8 July 2009, 11:21 CDT

LANCASTER, Texas, July 8 /PRNewswire/ -- HyperCube LLC., a competitive local exchange carrier, today filed a motion before the Public Utilities Commission of the State of California (CPUC) seeking to compel Level 3 Communications, Inc. (Nasdaq: LVLT) to place funds in escrow with a third party agent pending resolution of the action between HyperCube and Level 3 currently before the CPUC.

From November 2005 through November 2007, Level 3 was paying HyperCube for access services pursuant to HyperCube's valid intrastate and interstate tariffs. Beginning in November 2007, shortly after announcing that the company was sharply reducing guidance for its financial performance, Level 3 unilaterally began refusing to pay HyperCube for services provided nationwide.

On May 8, 2009, HyperCube filed a complaint with the CPUC due to Level 3's unlawful refusal to pay for tariffed access services performed by HyperCube in connection with Level 3's provision of toll-free calls that originate and terminate in the State of California. In accordance with the directive of the CPUC, HyperCube continues to route calls destined to Level 3's toll-free subscribers even though Level 3 has refused to pay HyperCube's CPUC approved tariffed rates for the work it performs for Level 3. As of July 8, 2009, Level 3 owes HyperCube approximately $19 million for interstate and intrastate calls. HyperCube has initially requested that Level 3 be compelled to place approximately $5.3 million with a third party escrow agent pending resolution of the action between HyperCube and Level 3 currently before the CPUC.

Ronald R. Beaumont, President and CEO of HyperCube, said, "Unfortunately, our attempts to find a reasonable solution to this matter have been rebuffed by Level 3 and, as a result, we were compelled to commence this action. Given the current economic environment and the public record on Level 3's financial difficulties, we are asking the CPUC to require Level 3 to put into escrow the funds owed to date as well as any amounts accrued until the matter is resolved. We look forward to a favorable ruling by the CPUC."

About HyperCube

HyperCube LLC. is a leading provider of local and national tandem switching services to wireless, wireline, cable and VOIP carriers. HyperCube operates a comprehensive national network, which provides an alternative to and significant savings over the Incumbent Local Exchange (ILEC) network. HyperCube's network is highly flexible, and allows carriers to customize traffic routing and reduce costs. HyperCube is well positioned to capitalize on significant growth in wireless traffic volumes and in the technology convergence to IP-based telephony as a neutral, unaffiliated carrier.

To learn more about HyperCube, please visit http://www.hypercube-llc.com.

SOURCE HyperCube LLC.

Source: PR Newswire

More News in this Category