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Telecommunications industry

EqualNet Renegotiates Tariff Agreement with AT&T for Long-Distance Service Resale

Strategic Insights

— 1 min read

EqualNet Holding Corporation, a leading long-distance company, has renegotiated its tariff agreement with AT&T for the provision of long-distance service for resale by its subsidiary, EqualNet Corporation. The revised contract, which supersedes an existing agreement, increases EqualNet's remaining commitment to AT&T by $35 million and reflects the merger of Network Plus's AT&T traffic by EqualNet. This agreement represents a significant improvement in operating margins for EqualNet and further solidifies its position as a major long-distance company.

Key Takeaways:

  • EqualNet renegotiated its tariff agreement with AT&T for long-distance service resale, increasing its remaining commitment to AT&T by $35 million.
  • The revised contract, which expires in November 1998, allows for greater flexibility for EqualNet to discontinue service if a more attractive offer arises in the future.
  • The agreement reflects the merger of Network Plus's AT&T traffic by EqualNet, which had a previous long-distance service agreement with AT&T totaling $45.3 million.
  • The revised agreement improves EqualNet's operating margins and enhances its acquisition capabilities and price competitiveness in the market.
  • EqualNet's core strategy focuses on managing profitable growth while adapting to the highly competitive long-distance industry.
  • The Company's subsidiary, EqualNet Corporation, offers discounted major carrier transmission services to small and medium-sized businesses.

Statistics:

  • The revised tariff agreement increases EqualNet's remaining commitment to AT&T by $35 million.
  • The previous long-distance service agreement between Network Plus and AT&T totaled $45.3 million.
  • The revised agreement expires in November 1998.
  • EqualNet's core strategy focuses on managing profitable growth, while remaining adaptable in the highly competitive long-distance industry.
  • The Company has a subsidiary, EqualNet Corporation, which offers discounted major carrier transmission services to small and medium-sized businesses.

Sources:

  • Business Wire, October 24, 1995
  • EqualNet Holding Corporation (NASDAQ: ENET)

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