Transcom wins first battle

Transcom, an independent provider of wholesale VoIP services in Texas, won its first legal battle against AT&T and SBC Communications, but has not yet won the war.

Transcom, which voluntarily entered bankruptcy proceedings in February in the face of demands for access fees by SBC and cancellation of its services from AT&T, won the bankruptcy court ruling that it sought. Judge Harlin D. Hale of the Northern District Court of Texas Bankruptcy Division ruled that Transcom should be considered an enhanced services provider and not be held responsible for access fees.

AT&T had cancelled its Master Agreement with Transcom on the basis of SBC’s claims that Transcom was like any telecom service provider and should pay access fees for termination of calls.

The judge left enforcement of his decision up to another court, however, ruling that, in order to force AT&T to resume providing services under the original terms of the agreement, Transcom must file suit against AT&T in New York courts, which were established as the jurisdiction in the original agreement between the two companies.

“We haven’t heard anything from either SBC or AT&T since the ruling,” said Scott Birdwell, CEO of Transcom. “Basically, we now have to go fight this out in the New York court. AT&T is succeeding in delaying things and making us spend more money in the meantime.”

Transcom continues to operate its service and is using news of the ruling to reassure customers that neither Transcom nor its customers will be subject to access fee charges from SBC, as that company had alleged.

SBC did not respond to a request for comment.

“We’re still in business, and we are working on the plan for emerging from bankruptcy,” said Birdwell. “We want to get the word out as much as possible.”