The Las Vegas Sun is reporting that CommPartners has filed bankruptcy protection (against Ma Bell). "The filings were made in Nevada bankruptcy court by Las Vegas-based companies CommPartners Holding Corp., CommPartners Carrier Services Corp., CommPartners Network Services LLC and CommPartners LLC." (Doing business under the name CommPartners Connect.)
An inside source reminds me that, "It's a Chapter 11 re-organization, not liquidation. Caused by an FCC that has been afraid to tackle inter-carrier compensation reform and by greedy ILECs that act as if they are entitled to inflated access charges. ... they will emerge stronger post re-org."
I think it's partially a case of you want X but you are only given Y. I know I will sound like Dave Rusin today, but it's not like access charges a surprise. You have this schedule. It tells you what you will pay. You then have this think called pricing. You adjust it so that you make this other thingy called profit. I know it's all high-faluting accounting, but because we can't do basic math in this country is why we are so f..er, in trouble.
I was an agent for CP in 2003. It's been 7 years. It's not rocket science, it's VoIP. The New York area network gives one CP reseller nothing but trouble. It has been a year-long fiasco.
At the same time, CP has been in a dispute with PAETEC over access charges, which it won in February. Now all kinds of parties are hoping the Court of Appeals will solve the VoIP Access Charge issue once and for all.
One striking stat for me is this: "The company posted a 2009 loss of $4.8 million on revenue of $31.3 million and said that as of April 30 it had assets of $8.5 million against liabilities of $6.3 million." Losses seem much higher this year than last despite the favorable ruling.
CommPartners certainly does need a re-org. And the FCC certainly needs to rule on Inter-Carrier Comp, before the Court decides for them.