In the second quarter, PCNet's wholly-owned subsidiary, Pacific Coast Net Inc., entered into a services agreement with Regare. Pacific Coast became the primary provider of long-distance carrier services to Regare.
Regare offers long distance and related telecommunication services. Under the terms of the deal, Pacific Coast would purchase long distance time from primary carriers for use by Regare. In return, Pacific Coast would receive service fees based on the profitability of these long-distance services.
But if Regare defaulted on the deal and could not pay the service fees, Pacific Coast could take ownership of Regare's assets to cover itself.
In a release PCNet said it has taken over servicing Regare's existing customers and is attempting to renew relationships with subscriber groups. It will absorb 25 Regare employees and executives into the worforce of its PCNet Voice Services subsidiary.
As part of PCNet Voice Services, the former Regare employees will provide the customer service, billing, technical support, provisioning and sales activities to maintain and grow the Regare business segment.
Adding the Regare business to PCNet Voice Services adds about 15,000 customers and projected annual sales ranging from $6 million to $9 million, PCNet said.
PCNet offers Internet access, high speed DSL and cable services, wireless Internet access products, dial-up, Web hosting and design, network design and computer hardware and software products to customers from Ontario west to British Columbia.
