TelePacific is on an acquisition path; after they today announced to Acquire Telekenex,  TelePacific Communications also announced a definitive agreement to acquire Orange County Internet Xchange (OCiX, Inc.), a dedicated provider of carrier class colocation services. OCiX operates a 10,000 square-foot SAS 70 Type II certified facility, located in Santa Ana, California which TelePacific plans to substantially expand in the near future.

The acquisition of OCiX will further enhance TelePacific’s suite of colocation and business continuity services offered to its SMB customers by providing a second SAS 70 data center. The OCiX data center is strategically located very close to the existing TelePacific colocation facility in Irvine and will immediately provide the needed increased capacity. TelePacific’s other carrier class colocation facilities are located in San Jose, San Francisco, San Diego, Los Angeles and Las Vegas. The combination of two SAS 70 data centers will provide excellent geographic diversity for TelePacific’s substantial SMB customer base with facilities in both Sacramento and Orange County.

“Business continuity planning is critical,” said Dick Jalkut, President and CEO of TelePacific. “The addition of the new SAS 70 certified data center positions us to provide our customers more options for secure colocation services that will enhance their business continuity plans.”

OCiX customers will benefit from the opportunity to consolidate their voice and data services with one provider, and have access to TelePacific’s extensive portfolio of enhanced business services to improve employee productivity—from wireless connectivity, redundancy solutions for voice and data and high bandwidth Ethernet access services, to customer portals that allow customers to pay their bills online, monitor their network and submit and track trouble tickets.

“We are excited to find in TelePacific a company that shares our values and approach to customer service,” said Brandon Chaney, CEO and co-founder of OCiX. “Our customers have come to expect the best and I’m confident they will continue to find it as this transition takes place.”

“We are proud of what we have built at OCiX,” said Anthony Zabit, OCiX’s COO and co-founder. “TelePacific will be able to bring its fiber on net and we’re excited to offer the Company’s high speed offerings to enhance our colocation services.”

The transaction is expected to close on June 1st, 2011. Throughout the closing process, there will be no impact to OCiX customer service or support. TelePacific and OCiX will work together to ensure a seamless transition of customer service.

The exclusive legal advisor to TelePacific was Gibson, Dunn & Crutcher LLP. The exclusive financial and legal advisors to OCiX were D.A. Davidson & Co. and Gunderson Dettmer.

Click here for the transaction summary.

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TelePacific Communications today announced a definitive agreement to acquire all of the assets and customers of IXC, Inc., and IXC Holdings, Inc., which do business as Telekenex, a business-grade IP services provider headquartered in San Francisco and Seattle.

Under the terms of the agreement, the TelePacific Communications family of companies will gain approximately 1,000 business customers and 122 employees. Additionally TelePacific will augment its existing IP portfolio with the following services:

• A robust hosted PBX platform with nationwide voice capabilities;
• A nationwide PCI compliant MPLS backbone;
• A fiber network in the San Francisco-Oakland Bay Area;
• Managed network services providing advanced configuration and support for complex network deployments; and
• Managed security services through a cloud-based firewall.

“This is a big game-changer for TelePacific,” said Dick Jalkut, president and CEO of TelePacific. “This transaction not only enhances TelePacific’s network and makes us even more competitive, but it instantly opens up new markets and opportunities for growth. We are excited about the strategic opportunities this presents us and our customers.”

With hosted PBX services, TelePacific customers will be able to benefit from all the conveniences and features of an on-premise PBX without the equipment cost and capital outlay. Moreover customers will realize increased productivity leveraging an extensive feature set of cloud-based tools.

“Since our beginnings in San Francisco in 1994, Telekenex has been dedicated to delivering quality communications solutions,” said Brandon Chaney, CEO and co-founder of Telekenex.

“We are very proud of the products and services we’ve developed, as well as the care and service we have provided our customers. I feel confident that TelePacific will successfully carry that tradition forward and build upon our successes,” said Anthony Zabit, COO and co-founder of Telekenex.

TelePacific plans to operate the business assets of Telekenex – its service offerings and customer operations – as a separate channel led by Chaney. “I am excited to be part of this dynamic company and I look forward to bringing hosted PBX and managed solutions to TelePacific,” said Chaney.

Closing of the transaction is subject to customary closing conditions, including state and federal regulatory approvals. TelePacific will assume operational responsibility for Telekenex’s customer base following regulatory approval, expected in the third quarter of 2011. Throughout the closing process, there will be no impact to Telekenex’s customer service or support, and TelePacific and Telekenex will work together to ensure a seamless transition of customer service.

The exclusive legal advisor to TelePacific was Gibson, Dunn & Crutcher LLP. The exclusive financial and legal advisors to Telekenex were D.A. Davidson & Co., Gunderson Dettmer and DLA Piper.

Click here for the transaction summary.

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Federal authorities might be investigating an act of “cyber-terrorism” on TelePacific Communications’ network after the company suffered a major disruption last week that left many of its “SmartVoice” customers without the ability to make and receive calls.

The “unprecedented attack” on the network occurred March 24 and March 25, TelePacific President and CEO Dick Jalkut wrote in a letter dated Monday to his SmartVoice customers. Los Angeles-based TelePacific has engaged the FBI’s cyber attack division to attempt to identify the source of the attack, Jalkut said. Read the full story here.

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TelePacific Communications has received regulatory approval for and completed the acquisition of NextWeb, Inc., dba Covad Wireless, a broadband fixed wireless carrier operating in California, Nevada and the Chicago, Illinois area.

Through its acquisition of NextWeb, TelePacific now controls a WiMAX-featured wireless broadband network, a licensed microwave backhaul network, and a high bandwidth wireless network operating in licensed LMDS spectrum. The new network assets complement TelePacific’s existing footprint and allows the company to broaden its product offerings in markets where it is already competitive. Further, the purchase supports TelePacific’s strategy of investing in advanced broadband transport technologies.

TelePacific will also gain the benefit of approximately 3,500 profitable broadband fixed wireless business customers in California, Nevada and suburban Chicago.

“We are pleased to welcome Covad Wireless customers to the TelePacific family and look forward to introducing them to TelePacific’s signature customer service,” said Dick Jalkut, President and CEO of TelePacific. “The additional resources we gained through this acquisition—the fixed wireless network and experienced wireless team, have enhanced our ability to serve our customers. Each new acquisition has made us stronger and TelePacific is well-positioned to expand its market share.”

Future and existing TelePacific customers will benefit from increased availability of high bandwidth data products with symmetrical upload and download speeds up to 100 Mbps. In addition, new redundancy options and special event Internet access will be available. Customers will also enjoy fast installs because incumbent local exchange carrier (ILEC) loops will not be needed to deliver these services.

TelePacific extended employment offers to all Covad Wireless employees at the time of the acquisition close and is fortunate to have them supporting legacy Covad Wireless customers. TelePacific continues to be privately-held and financial terms of the deal were not disclosed.

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TelePacific Communications, the largest California-based CLEC and MegaPath Inc. today announced a definitive agreement for TelePacific Communications to acquire MegaPath’s NextWeb, Inc. subsidiary, dba Covad Wireless, a broadband fixed wireless carrier operating in California and Nevada.

Under the terms of the agreement, TelePacific Communications will gain approximately 3,500 profitable broadband fixed wireless business customers in California, Nevada and suburban Chicago through an all cash purchase of capital stock.

TelePacific’s acquisition of Covad Wireless will expand TelePacific’s SMB services into the fixed wireless market with a complementary network footprint. Transaction benefits include increased availability of high bandwidth products to customers, the ability to provision customers more quickly, and own the “last mile” which reduces dependency on incumbent local exchange carriers (ILECs). The transaction also strengthens TelePacific’s position as the number one competitor to AT&T and Verizon for SMB customers in the California and Nevada markets.

“Covad Wireless is an established innovator in fixed wireless broadband delivery with demonstrated managerial and operational excellence,” said Dick Jalkut, president and CEO of TelePacific. “Benefits to new and existing customers will be twofold—expanded fixed wireless service offerings and the expertise of the entire Covad Wireless team.”

Covad Wireless customers will gain access to TelePacific’s enhanced business services including converged voice and data networks in California and Nevada, and wide area networking capabilities globally. The addition of a broadband fixed wireless network allows TelePacific to offer quick-to-deploy wireless Internet, and reinforce its business continuity solutions with both wireless and wired network paths.

“Following our merger with Covad and Speakeasy, MegaPath is continuing to refine our business with a focus on providing nationwide access, security and voice services,” said D. Craig Young, Chairman and CEO of MegaPath. “As a regional offering, Covad Wireless fell outside of our strategic focus, and this agreement ensures that those customers are properly supported.”

The transaction is subject to customary closing conditions, including federal regulatory approvals. TelePacific will assume operations responsibility for the Covad Wireless customer base following regulatory approval and closing, expected in the first or second quarter of 2011. Throughout the closing process, there will be no impact to Covad Wireless customer service or support. TelePacific and Covad Wireless will work together to ensure a seamless transition of customer service.

The exclusive financial and legal advisors to TelePacific were Brown Brothers Harriman & Co. and Gibson, Dunn & Crutcher LLP, respectively. The exclusive legal advisor to MegaPath was Bingham McCutchen LLP.

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Ethernet over Copper (EoC) offers higher bandwidth at attractive price points compared to traditional T1 lines.

TelePacific’s SmartVoice portfolio uses Session Initiation Protocol (SIP) for call control and mobility features and is offered as a dynamically integrated solution with Internet access and/or MPLS. SmartVoice enables customers to optimize their network access resources for voice or data traffic as needed. For example, using SmartVoice, voice traffic is prioritized over data traffic so calls come through clearly. As call paths are released, they dynamically convert to data bandwidth to speed data traffic through the customer’s network. This protocol ensures that customers continuously reap the benefit of their network investment based on their calling patterns.

“Combining SmartVoice with Ethernet over Copper delivery is a natural fit,” said Laurene Heinsohn, director of VoIP development for TelePacific Communications. “It allows TelePacific to offer our customers yet another option for their voice and data services. SmartVoice is already an outstanding service and now, with Ethernet over Copper, it’s even better—more efficient and more cost effective than before.”

Available in business lines, PRI, CAS or native SIP handoff, SmartVoice customers can select up to 120 call paths with integrated Internet access and/or MPLS IP-VPN services. SmartVoice over EoC bandwidths are available from 1 Mbps to 20 Mbps, depending on distance from the serving wire center. In addition, using Ethernet over TDM transport, SmartVoice bandwidth can scale as high as 135 Mbps. The SmartVoice portfolio also includes up to 22 enhanced calling and data feature and local and IntraLATA calling is included for one flat rate.

TelePacific’s Ethernet transport portfolio allows the Company to deliver services from 1 Mbps to 1 Gbps, and nearly any increment in between, to enterprise customers. Ethernet offers many benefits to customers, including higher performance, scalable bandwidth, lower cost, ease of use and improved productivity. TelePacific also offers around-the-clock network monitoring to ensure uptime and quickly resolve any issues.

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TelePacific Communications is aggressively expanding its Ethernet network. TelePacific now offers Ethernet over Copper (EoC) delivery in the majority of its California and Nevada service areas, and will bring a total of 120 EoC wire centers online by the end of Q1 2011; the Company has 52 wire centers online today. The expansion will make TelePacific’s Ethernet over Copper, as well as Ethernet over T1 and Ethernet over DS3, offerings available in all markets TelePacific serves.

“Customers are requesting increased bandwidths and expanding our Ethernet over Copper services is a great way for us to meet that demand,” said David Zahn, vice president of marketing for TelePacific Communications. “TelePacific has enhanced our entire portfolio of Ethernet offerings in 2010—just one more way we are meeting our commitment to provide our customers with the products and services they need to be successful.”

TelePacific’s Ethernet over Copper deployment provides its customers with voice, data and Internet access speeds from 1 Mbps to 10 Mbps, depending on distance from the serving wire center.  In addition, TelePacific’s full portfolio of Ethernet transport allows the company to deliver services at speeds ranging from 1 Mbps to 1 Gbps, and nearly any increment in between, to enterprise customers. Ethernet offers many benefits to customers, including higher performance, scalable bandwidth, lower cost, ease of use and improved productivity.

TelePacific also offers around-the-clock network monitoring to ensure uptime and quickly resolve any issues.

TelePacific currently offers Ethernet over Copper, T1 and DS3 in all markets. Ethernet over fiber is available in Las Vegas, San Diego, greater Los Angeles and Orange County.

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TelePacific Communications has asked the FCC to review and stay an action taken by the administrator of the Federal Universal Service Fund (“USF”).

In its ruling, the Universal Service Administrative Company (“USAC”) ordered TelePacific to treat its broadband Internet access services as telecommunications subject to USF where TelePacific delivers the service to the end user over a T-1 circuit.

“TelePacific supports universal service and broadband access and is already a significant USF contributor”, said TelePacific’s CEO Dick Jalkut. “The USAC’s decision, by discriminating against carriers that use certain wireline transmission technologies to deliver their service to customers, violates the bedrock principle that USF contributions must be assessed on a competitively neutral basis.”

Under USAC’s decision, Internet providers using T-1s must pay USF while Internet providers using DSL, fiber, and coaxial cable are not subject to the same USF fees (currently 14.1%). TelePacific asks the FCC to stay the USAC decision while it evaluates the appeal on its merits.

TelePacific argues that USAC’s decision is based on a fundamental misreading of the Commission’s 2005 Wireline Broadband Order. USAC refuses to decide the threshold question of whether the finished product TelePacific provides to the end user is an information service; ignores the critical modifier “stand-alone,” which the FCC used to distinguish between basic transmission services (subject to USF) and wireline broadband Internet access (not subject to USF); and impermissibly singles out T-1-based services for contribution at the same time it awaits FCC guidance on ATM and frame relay services (which both USAC and the FCC recognize are analogous).

TelePacific has requested FCC action on the stay by February 8, but no later than March 31, 2010. TelePacific expects the FCC to request comment on its request for review and stay of USAC’s action.

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TelePacific Communications, serving customers in Nevada and California, introduced today new channel leadership and agent support for 2010.

Ken Bisnoff, senior vice president of strategic opportunities will return to take a more active role in TelePacific’s Telepartner Channel. A 2007-08 Phone+ Channel Executive of the year nominee and Phone+ Advisory Board member, Bisnoff launched TelePacific’s Telepartner Channel program in 2002 and has been involved in multiple Executive assignments since that time.

“I am enthusiastic about getting more involved with our Telepartners again, and I look forward to the continued success of the program,” said Bisnoff.

TelePacific’s Telepartner Channel has received several awards from agents through both Phone+ and the Telecommunications Association including:

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TelePacific Communications, a provider of business telecommunications network solutions serving customers in Nevada and California, today announced that it has expanded its Nevada service area to include the state capital, Carson City. TelePacific now serves all major cities in Nevada.

“Our experience working in northern Nevada showed us that expanding our coverage area to Carson City was essential in order to successfully serve Nevada customers,” said Dick Jalkut, TelePacific’s CEO and president. “Part of TelePacific’s success is due to the focused geographic areas we serve. The expansion allows us to better serve our customers and reinforces TelePacific’s commitment to provide excellent local service.”

TelePacific provides small-to-medium sized businesses in California and Nevada with a variety of telecommunications services, including local and long distance voice, Voice over Internet Protocol (VoIP), dedicated Internet access, private networking and data transport services as well as bundled voice and Internet solutions. And with a presence in every major metropolitan area in Nevada and California, multi-location companies with offices throughout those states can work with a single provider for all of their telecommunication needs.

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TelePacific Communications, a provider of business telecommunications solutions based in California, announced today it has been named to the “Fastest Growing Private Companies in Los Angeles” list. The Los Angeles Business Journal placed TelePacific in the top 100 companies, based on its growth from 2004 to 2006. During that period, TelePacific experienced an impressive 235% growth, earning the Company the number 14 spot on the list.

“We are very pleased and excited by the rapid growth TelePacific has experienced over the last few years,” said Richard Jalkut, president and CEO of TelePacific. “What we are even more enthused about is that through this fast growth, employees throughout the entire organization have maintained a steadfast focus on customer service and satisfaction. Throughout this period, our customer satisfaction levels have consistently ranked in the 97th percentile, even as we have grown to serve more than 75,000 small- and medium-business customers in two states.”

TelePacific has expanded through both acquisitions and organic growth, adding regional call centers, and expanding the markets it serves across California and Nevada to address growing customer demand. With a recent expansion into the Reno, Nevada market, TelePacific now provides services to every major metropolitan area in California and Nevada, allowing customers with multiple locations to work seamlessly with a single provider for all of their telecommunication needs.

In addition to being recognized by the Los Angeles Business Journal as one of the fastest growing private companies in Los Angeles, TelePacific was also honored in September by Inc. Magazine as one of the “Fastest Growing Private Companies in America.”

More information on the Fastest Growing Private Companies in Los Angeles can be found on the Los Angeles Business Journal’s web site at http://www.labusinessjournal.com.

About TelePacific

TelePacific Communications is a competitive carrier that serves customers throughout California and Nevada. Headquartered in Los Angeles, the Company is the leading competitive carrier in its footprint, with customer care centers in Los Angeles and Stockton in California and Las Vegas in Nevada. In business since 1998, TelePacific provides services through a combination of TelePacific-owned switches and network infrastructure, including its robust fiber-optic network assets. Offering local and long distance voice, dedicated Internet access, private networking and data transport services as well as bundled voice and Internet solutions and wholesale services, TelePacific manages more than 75,000 customer accounts with 980,000 access lines in service.

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