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November 12, 2001 — (WEB HOST INDUSTRY REVIEW) — e.spire Communications, Inc. (espire.net) filed two
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complaints against Verizon (verizon.com) charging that it has failed to pay millions of dollars of bills in violation of orders issued by the Maryland Public Service Commission and the U.S. Bankruptcy Court.
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The first complaint, before the Maryland Commission, points to Verizon’s
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alleged flouting of a June order of the Commission requiring Verizon to
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continue to pay reciprocal compensation bills in Maryland in the wake of a
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recent order of the Federal Communications Commission. The Maryland
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Commission has found that Verizon must continue to pay such bills until it
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signs new amendments to its interconnection agreements. Verizon and e.spire
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are still negotiating an amendment, but Verizon continues to withhold
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payment, in defiance of the Commission’s express orders.
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The Commission has already ordered Verizon to pay Core Communications
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(core.net) and all other competitors in Maryland. WorldCom, Inc. (worldcom.com) has also filed a complaint, asking the Commission to levy $25,000 per day in penalties for Verizon’s failure to pay similar WorldCom bills. e.spire has asked the Commission to order swift and severe sanctions, including delaying Verizon’s Maryland application to reenter the long distance market, until it can demonstrate 18 consecutive months of abiding by the Commission’s local competition orders.
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“Verizon just doesn’t get it. It thinks e.spire should make payments to
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Verizon, but Verizon is above the law and doesn’t have to pay for services
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rendered by e.spire,” said James C. Falvey, e.spire senior vice president of
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regulatory affairs. “It seems to think it can ignore the Maryland
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Commission. What Verizon is really trying to do is force all competitors out
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of the market so it can continue to run its monopoly.”
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e.spire also filed a complaint in Bankruptcy Court in Delaware, charging
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Verizon with failure to pay a total of $2.6 million in overdue payments to
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e.spire. Verizon has claimed that e.spire owes money to Verizon, but an
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internal e.spire audit determined that Verizon had lost and misplaced checks
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made by e.spire, and returned checks to e.spire without explanation. The
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e.spire audit determined that e.spire payments were in fact current, the
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company says.
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e.spire has requested an expedited hearing by the Maryland Commission.
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e.spire Communications, Inc. is a leading integrated communications
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provider, offering traditional local and long distance, dedicated Internet
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access, and advanced data solutions, including ATM and frame relay. e.spire
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also provides Web hosting, dedicated server, and co- location services
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through its Internet subsidiary, CyberGate, Inc., and its subsidiary
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ValueWeb. e.spire’s subsidiary, ACSI Network Technologies, Inc., provides
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third parties, including other communications concerns, municipalities, and
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corporations, with turnkey fiber-optic design, construction, and project
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management expertise.
About theWHIR.com
Since 2000, The Web Host Industry Review has made a name for itself as the foremost authority of the Web hosting industry providing reliable, insightful and comprehensive news, interviews and resources to the hosting community. TheWHIR is an iNET Interactive property. For more information on iNET Interactive, visit http://www.inetinteractive.com
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