Without revealing the name of its large customer, Inteliquent, a provider of interconnection and interoperability solutions, has reached definitive and fully documented agreements on disclosed dispute with one of its largest customers relating to the termination of certain long distance traffic.
As part of the settlement, Inteliquent will make a one-time payment of $9 million in December to this customer. This amount contains a full and mutual release related to this dispute, and both parties believe that settlement is fair and reasonable.
This settlement will help the company to avoid a long and costly legal fight with that customer.
"We are pleased that this matter has been resolved amicably and we will continue our longstanding business relationship. Our voice services are utilized by almost every major carrier in the U.S and we remain confident in our market position going forward," Ed Evans (News - Alert), chief executive officer at Inteliquent, said in a statement.
David Zwick, EVP and chief financial officer, added, "Our customers are one of our most important assets. We look forward to starting a new chapter with this customer and working together for many years to come."
Inteliquent provides intelligent networking to solve challenging interconnection and interoperability issues on a global scale. The company offers voice, IP Transit and Ethernet service solutions to major carriers, service providers and content management firms based in more than 80 countries and six continents.
Additionally, Inteliquent and the customer have agreed to new terms that govern a portion of their commercial relationship. With the new agreement, which was effective as of October 5, 2012, Inteliquent will continue to offer various voice services to the customer, but at pricing that is significantly lower than the previous rate structure.
The company will also pay the customer a significant amount for certain long distance traffic that it terminates to the customer's network.
Looking to grow your channel opportunities? Then be sure to attend Channel Vision Expo (CVx), collocated with ITEXPO Miami 2013, Jan 29- Feb. 1 in Miami, Florida. Stay in touch with everything happening at Channel Vision Expo. Follow us on Twitter.
Edited by Braden Becker