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Primus Telecommunications Group, Inc. - Communications Services -
Category Directory
1700
Old Meadow Road, Suite 300
McLean, VA 22102
(703) 902-2800
www.primustel.com
Sales
$1.3
billion
Business Description
We, Primus Telecommunications Group, Incorporated, are a global,
facilities-based telecommunications services provider offering an integrated
portfolio of international and domestic voice, Internet, voice-over-Internet
protocol (VOIP), data and hosting services to business and residential
retail customers and other carriers located primarily in the United States,
Australia, Canada, the United Kingdom and Europe. Our focus is to service
the demand for high quality, competitively priced international
communications services that is being driven by the globalization of the
world's economies, the worldwide trend toward telecommunications
deregulation and the growth of Internet, VOIP and data traffic.
We target customers with significant telecommunications needs, including
small- and medium-sized enterprises (SMEs), multinational corporations,
residential customers, and other telecommunications carriers and resellers.
We provide services over our global network, which consists of:
18 domestic and international gateway switching systems (the
hardware/software devices that direct the voice traffic across the network)
in North America, Australia, Europe and Japan;
approximately 250 interconnection points to our network, or points of
presence (POPs), within our service regions and other markets;
undersea and land-based fiber optic transmission line systems that we own
or lease and that carry voice and data traffic across the network; and
global network and data centers that use a high-bandwidth network
standard, asynchronous transfer mode, and Internet-based protocol (ATM+IP)
to connect with the network. The global VOIP network is based on routers and
gateways with an open network architecture which connects our partners in
over 150 countries.
The services we offer can be classified into three main product categories:
voice, data/Internet and VOIP services. Within these three main product
categories, we offer our customers a wide range of services, including:
international and domestic long distance services;
prepaid calling cards (including services which allow transmission of
mobile voice traffic over our land-based network known as Virtual Mobile
Network Services or VMNS), toll-free services and reorigination services;
dial-up, dedicated and high-speed Internet access;
local services;
ATM+IP broadband services; and
managed and shared Web hosting services and applications.
Generally, we price our services competitively with the major carriers
operating in our principal service regions. We expect to continue to
generate net revenue from internal growth through sales and marketing
efforts focused on customers with significant communications needs
(international and domestic voice, Internet and data), including SMEs,
multinational corporations, residential customers, particularly ethnic
customers, and other telecommunications carriers and resellers, as well as
acquisitions.
Having completed our global network infrastructure deployment, our primary
operational focus is on building scale in our core markets by adding
customers and traffic. The combination of network ownership and increasing
scale provides us with the ability to reduce our cost structure, improve
service quality and reliability, and introduce new products and services.
Services
We offer a broad array of communications services:
International and Domestic Long Distance. We provide international long
distance voice services terminating in over 240 countries, and domestic long
distance voice services in our core operating markets.
VOIP Services. We offer to ISPs, telecommunications carriers worldwide,
and enterprise customers VOIP services both over the public Internet as well
as direct point-to-point VOIP services over our ATM+IP network. In addition,
we offer VOIP services for PC-to-phone or PC-to-PC usage through a
partnership arrangement with Microsoft.
Internet and Data Services. We offer global ATM, frame relay, and
Internet/IP services which are available to customers in the United States,
Australia, Canada and the United Kingdom. In Australia, we offer data
transfer services over ATM and frame relay networks in addition to Internet
access services through dial-up, accelerated dial-up and DSL. We also offer
Web hosting, managed hosting, dedicated hosting, virtual private networking
(VPN) and co-location services in our primary operating markets.
Prepaid Services (including VMNS). We offer prepaid calling cards that may
be used by customers for domestic and international telephone calls both
within and outside of their home country. In Europe, we offer prepaid VMNS
to mobile phone users which bring international minutes originating from a
mobile phone onto our global network.
Toll-free Services. We offer domestic and international toll-free services
within selected countries in our principal service regions.
Reorigination Services. In selected countries, we provide call
reorigination services which allow non-United States country to country
calling to originate from the United States, thereby taking advantage of
lower United States accounting rates.
Local Switched Services. We offer local service on a resale basis,
primarily in Australia and Canada.
Cellular. We offer cellular services on a resale basis in Australia and
the United Kingdom.
Description of Operating Markets
The following is a description of our operations in each of our four primary
markets. Management organizes the enterprise into geographic areasNorth
America, Europe and Asia-Pacific. The United States and Canadian operating
markets are the significant portions of our North America segment, and the
Australian market is the substantial portion of the Asia-Pacific segment.
United States. The United States is one of our four primary markets,
representing 22% of our 2003 net revenue. We provide international and
domestic voice, data, Internet and VOIP services to SMEs, residential
customers, multinational corporations and other telecommunication carriers.
We operate international gateway telephone switches in the New York City
area and Los Angeles, which are connected with countries in Europe, Latin
America and the Asia-Pacific region through owned and leased international
fiber cable systems. We lease and own domestic fiber in the United States to
interconnect our switches, data centers, and POPs. POPs are our
interconnection points with other networks. We maintain direct sales
organizations in Massachusetts and Virginia to sell to business customers
and have inbound telemarketing centers in Florida, Virginia and Puerto Rico.
To reach residential customers, we utilize telemarketing services and we
advertise in national and regional ethnic newspapers, other publications,
and on television to offer competitive rates for international and domestic
telephone calls, data, Internet and VOIP services. We also utilize
independent agents to reach and enhance sales to both business and
residential customers and have a direct sales force for marketing
international services to other telecommunication service providers,
including long distance companies, ISPs and VOIP service providers. We
maintain customer service centers in Florida and Virginia and also outsource
selected customer service functions overseas. We operate a 24-hour global
network management control center in Virginia that monitors our global
voice, Internet and data. We offer dial-up and DSL Internet access services
to business and residential customers. We also provide managed and shared
Web hosting services through our data center located in Lynn, Massachusetts.
Additionally, we provide local and international long distance voice
services, VOIP, and Internet services in Puerto Rico.
Australia. We are the fourth largest full service telecommunications
company, based on revenues, providing domestic and international long
distance services, data and Internet access services, as well as local and
cellular service on a resale basis, to corporate, SMEs and residential
customers. Our Australian operations represent 26% of our 2003 net revenue.
We have a nationwide domestic long distance network, and a five-city
backbone network using Northern Telecom switches in Sydney, Melbourne,
Perth, Adelaide and Brisbane with over 100 POPs covering more than 90% of
Telstra (the dominant carrier and former monopoly in Australia) local
exchanges. We maintain 24-hour customer service and network management
control centers.
We are the third largest ISP, based on market share, in Australia. We have a
data center in Melbourne which offers hosting and e-commerce applications
and services. We market our services through a combination of direct sales
to corporate and SME customers and independent agents, which market to
retail business and residential customers, and media advertising aimed at
residential customers who make a high volume of international calls.
Canada. Canada is another of our primary markets, representing 17% of our
2003 net revenue. We are the largest alternative consumer carrier in Canada
based on net revenue. We provide international and domestic voice services
to SMEs, residential customers and other telecommunication carriers and have
sales and customer service offices in key cities throughout Canada,
including Vancouver, Toronto and Montreal. We operate international gateway
switches in Toronto and Vancouver, maintain POPs in Ottawa, Montreal and
Calgary, and operate a nationwide integrated network backbone for our voice,
data, Internet and private line services. Each of the 24 nodes on the
backbone is equipped with Sonet add/drop, ATM, frame and IP equipment to
provide a complete spectrum of voice and data communications products to our
customers. We operate two Nortel DMS 500 switches in Toronto and Vancouver,
which provide on-net equal access coverage to an estimated 90% of the
population of Canada. We also operate a voice dial access network which
consists of some 70 POPs across the country.
We have data centers co-located with our switch sites in Vancouver and
Toronto through which we offer shared and dedicated hosting and co-location
services. We have an extensive Internet footprint and provide dial-up and
Integrated Services Digital Network (ISDN) Internet coverage to over 700
communities across Canada through a network of 51 POPs.
We market our services through a combination of direct sales to corporate
and SME customers and media advertising aimed at residential customers, and
affinity channels.
Europe. We operate as a licensed carrier in the United Kingdom, Germany,
France, Spain, Italy, Denmark, the Netherlands and Switzerland. The European
market represents 33% of our 2003 net revenue. Our network consists of core
backbone voice/data nodes in London, Frankfurt and Paris with nodes in
Milan, Madrid, Copenhagen, Amsterdam and Zurich. Our European network
interconnects with our global network. In London, we have a data center for
Web hosting and other services.
Our European operation is headquartered in London. We provide voice and data
services to residential customers, small businesses, and other
telecommunications carriers. We maintain a European multilingual customer
service call center in Glasgow, Scotland. We market our services across
Europe using a combination of direct sales, agents, and direct-media
advertising. We offer prepaid services (including VMNS) in most major
European countries, which are our largest and fastest growing products in
Europe. Throughout Europe, a large portion of call origination is via mobile
phones. In most cases, mobile carriers' tariffs for terminating
international minutes are higher than fixed line operators. Through the sale
of prepaid VMNS to mobile phone users, our European businesses are now
targeting international minutes originated from a mobile phone to bring onto
our global network for termination.
We operate Ericsson AXE-10 switches and provide services to retail business
and residential and carrier customers in Paris, Frankfurt, and London.
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