LecStar Telecom Inc., a wholly owned subsidiary of Fonix(R) Corp. (OTCBB: FNIX) offering a full array of fixed wire-line voice, data, Internet and operator services to business and residential customers in the Southeast, has entered into a management agreement with Lightyear Network Solutions, LLC (“Lightyear”) in order to decrease LecStar operating and related costs.
“Outsourcing LecStar Telecom’s telecommunications and customer service functions to Lightyear significantly reduces the company’s operating costs in the wake of recent regulatory actions that have negatively impacted small CLECs,” explained Thomas A. Murdock, chairman and CEO, Fonix Corp. “This change further enhances the company’s financial and competitive positions, while better enabling us to focus on developing and deploying integrated communication technologies.”
Under the terms of the agreement, effective July 1, 2006, Lightyear will manage all operating support services for LecStar including billing, provisioning, customer relationship management systems and telecommunications services under the terms of LecStar’s commercial agreements with wholesale telecom providers. Lightyear will receive specified fees from LecStar for these services. [Read more…]