CTC Communications Embarks On Fiber Network Buildout

Integrated Communications Provider CTC
Communications Group, Inc.
Monday signed agreements
totaling more than $190 million to buildout its fiber optic network.

The fiber rollout is fueled in part from proceeds of its recent $200
million convertible preferred stock offering and is expected to take two
years to complete.

agreed to purchase more than 8,300 route miles of dark fiber from Williams Communications Inc.
The $115 million deal includes co-location and maintenance agreements for
40 Williams (WCG)
Points of Presence, as well as and 116 Bell Atlantic Corp. POPs.

The Bell Atlantic (BEL)
agreements, combined with the Williams contract, provide a combined total
of 316 additional points for business access to CTC’s network. CTC intends
to expand its current network along the Washington, D.C. to the Boston corridor
and into 40 major markets, extending from the central U.S. throughout the
East Coast.

CTC will install and operate its optronics at points along the fiber
routes. CTC is spending an additional $75 million to purchase the hardware
from Cisco Systems Inc. (CSCO)
to complete the network outbuild.

CTC intends to install its fiber optic equipment and light up the new
routes in several phases. The first phase is scheduled to start with the
Boston to Washington DC route and is anticipated to be operational in the
summer of 2000. Part of the phase extends CTC’s network south to Virginia,
northwest to Ohio, east through New York and scheduled for completion early
next year when its loop returns to New England.

The second phase begins in December and will extend coverage from Virginia
south to Florida, west to Texas, north to Illinois and then easterly
through Indiana and Tennessee to Georgia. CTC expects to be complete the
outbuild by January 2002.

Robert J. Fabbricatore, CTC chairman and chief executive officer, said the
deals are essential elements of the firm’s strategic growth plan.

“The fiber and co-location initiatives are integral to the CTC strategic
growth plan and to enabling the company’s current and future customers to
excel in the rapidly emerging New World of web-based communications and
e-commerce,” Fabbricatore said.

“The high-quality fiber buildout
establishes the future roadmap for ICN Network and provides CTC with the
tools to effectively manage network costs while keeping pace with the
escalating demand for bandwidth.”

Gordon Martin, Williams president of carrier services, said its network
would enable CTC to access the bandwidth it needs to fuel its expansion plan.

“The scope, density and advanced architecture of Williams Communications’
network provides companies like CTC with the ability to rapidly acquire a
world-class telecommunications infrastructure and achieve broad market
penetration to enable their successful growth,” Martin said.

CTC has been on the move since the beginning of the year when it secured a
$225 million deal to fund its base plan for expansion of both its sales
offices and ICN network. In March, CTC tapped industry veteran and
networking expert Russell Oliver to join the team as vice president of
network operations. Oliver is responsible for all fiber transmission,
switching, operations and growth of the ICN network.

CTC is an aggressive full-service ICP that offers converged Internet,
voice, data, and video solutions to business customers in the robust

Washington D.C. to Boston corridor. It currently provides more than 12,000
customers with 269,000 access lines across northeast states.

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