NEW YORK, Oct. 20, 2004 (PRIMEZONE) -- Cyber Digital, Inc. (OTCBB:CYBD), announced that it is a winner in the multi-billion dollar local switching market for both voice and broadband data. The Supreme Court upheld a decision on October 12, 2004 that threw out federal regulations requiring Baby Bells to lease access to their local switching networks at cut-rate prices to long distance carriers and smaller telephone carriers.
According to The New York Times, "The justices declined to hear an appeal by AT&T (NYSE:T), MCI (Nasdaq:MCI) and smaller telephone companies that have said discount network access is critical if they are to compete against the big carriers, known as Baby Bells, which own the wires into most Americans' homes. MCI and AT&T have pulled back in their marketing of residential telephone service as a result of the court and the commission's decisions."
The new ruling forces the long distance carriers (LDCs) and smaller telephone carriers, known as competitive local exchange carriers (CLECs) to provide their own central office switches instead of leasing Bell switches for connecting calls. These LDCs and CLECs have lost the battle with the Baby Bells. Beginning next year, Baby Bells will virtually shut off access to their switches. However, LDCs and CLECs would be able to lease the copper lines to subscriber premises at cut-rate prices from the Baby Bells. This would permit the LDCs and CLECs to co-locate their switches in Baby Bells central offices.
"For the first time in our history, market opens for our advanced digital voice and broadband switches in the U.S. We believe that demand for our switches will support our future growth as this ruling marks a major milestone in the deregulation of local switching networks. Since central office space cost is extremely expensive, LDCs and CLECs cannot use our competitor's monolithic centralized switches, as they are bulky and heavy. Our distributed voice and broadband switches are relatively tiny compared to our competitors offerings. Hence, our switches are ideally suited for co-location in central offices. We believe that our digital voice switches and broadband IP (Internet Protocol) systems offers LDCs and CLECs an affordable one-stop solution for their local switching needs," said J.C. Chatpar, Chairman.
About Cyber Digital, Inc.
Cyber Digital, Inc., is a leading manufacturer and software developer of advanced digital voice switches and Internet Protocol (IP) systems for network operators worldwide. Website is www.cyberdigitalinc.com
This press release contains forward-looking statements, pursuant to the "safe harbor" provisions as fully described in Cyber's SEC filings.