Comtel Launches New Excel Telecommunications

Comtel Telcom Assets LP has completed its asset acquisition of VarTec Telecom Inc., one of the pioneers of the 10-10 dial-around market.

Comtel bought nearly all of VarTecs assets, as well as those of VarTecs subsidiaries Clear Choice Communications, One Choice and VarTec Solutions (formerly eMeritus Communications). The deal first was announced in August 2005. In 2001, VarTec bought the domestic operations of Excelcom Inc. and its wholly owned subsidiaries, Excel Telecommunications Inc., and Telco Communications Group Inc., as well as eMeritus Communications Inc. from Teleglobe Holdings Corp.

The new company will operate under the name Excel Telecommunications and will focus mostly on providing wholesale dedicated, switched and IP voice, wireless, data and enhanced services nationwide.

James Cashiola, Excels new CEO, said the company mainly will target master dealers, resellers, CLECs and IXCs, but it still will serve its existing residential and wireless customers. The company also will continue in the 10-10 market, including the 10-10-811 long-distance service, and the affinity programs offered under the VarTec brands.

The ongoing consolidation of service providers through megamergers, a progressive regulatory environment at the federal and state levels and the rapid adoption of IP-based technology collectively have created a new playing field on which the new Excel is now well-positioned to succeed, Cashiola said.

Excel said thanks to its facilities-based network, it can originate traffic anywhere in the country, unlike most wholesale operators.

Comtel primarily is owned by Sowood Commodity Partners Fund III LP, which is managed by Boston-based investment manager Sowood Capital Management LP.

Excel Telecommunications www.excel.com