Z-Tel Teams with Integral Access, Inc. to Initiate Roll-Out of IP Network for Residential and Small Business Markets

TAMPA, Fla.—(BUSINESS WIRE) --December 10, 2004 – Z-Tel Communications, Inc., a wholly owned subsidiary of Z-Tel Technologies, Inc. (NASDAQSC: ZTLDC) and leading provider of local, long distance and enhanced telecommunications services, today announced the initial rollout of its facilities-based Internet protocol (IP) network designed to deliver voice and data services to residential and small business customers. Z-Tel’s new network relies on “Broadband Loop Carrier” products from Integral Access, Inc., a leading provider of IP-based access solutions, and extends the reach of Z-Tel’s existing “Cisco Powered” softswitch-based IP network to broader markets.

“The successful deployment of this cutting-edge network not only enables us to serve greater geographic areas, but also enables us to offer advanced, cost effective voice and data services to residences and businesses,” said Z-Tel’s chief operating officer, Frank Grillo. According to Grillo, Z-Tel has deployed the network in Tampa, Florida and expects to complete deployment in New York City in mid-January. “Thereafter we plan to expand the network nationally in conjunction with network partner relationships to ensure the most flexible, feature-rich and cost competitive services possible,” he said.

Recent regulatory rulings and the incumbent carriers’ position on unbundled network element - platform (UNE-P) rates have forced competitive carriers like Z-Tel to consider building and managing their own facilities-based networks to remain competitive.

“We will continue to use UNE-P and build our own service infrastructure where it makes sense. This approach provides us greater flexibility, allows us to introduce new services, and be less vulnerable to UNE rate fluctuations,” said Grillo. “When appropriate we may seek to migrate substantial portions of our existing UNE-P-based customer base to our IP network.”

Z-Tel has executed a multi-year agreement with Integral Access for the purchase of PurePacket hardware and software. The PurePacket system is an intelligent IP-based access solution that allows carriers to deliver a comprehensive set of converged voice, data and video services over a single, multi-purpose network using a number of access media. PurePacket uses configurable POTS and/or ADSL2+ interfaces on every port as well as integrated loop testing and qualification to provide rapid service delivery without the need for truck rolls.

“We have chosen Integral Access’ PurePacket for it is field proven reliability, ease of integration with our Cisco Softswitches, and overall features and capabilities which compare favorably against other broadband loop carrier technologies in the market. PurePacket is a solid platform for delivery of new differentiated voice and broadband services,” said Grillo.

Integral Access, headquartered in Chelmsford, Massachussets, views the Z-Tel relationship as a major milestone in its move into the residential broadband and IP telephony market.

“We are very pleased that Z-Tel has selected Integral Access,” said Jack Cicon, chief executive officer and president of Integral Access. “We are highly confident that our carrier grade, last mile PurePacket solution will help to provide Z-Tel with the operational and business flexibility necessary to profitability grow their markets and services in this highly competitive environment.”

About Z-Tel
Z-Tel, the first nationwide local phone service provider, offers consumers and businesses nationwide enhanced wire line and broadband telecommunications services. All Z-Tel products include proprietary services, such as Web-accessible, voice-activated calling and messaging features, which are designed to meet customers' communications needs intelligently and intuitively. Z-Tel is a member of the Cisco Powered Network Program and makes its services available on a wholesale basis to other communications and utility companies, including Sprint. Z-Tel has previously announced its intention to change its name to Trinsic, Inc. effective as of the close of business on January 3, 2005. Its new NASDAQ trading symbol will be TRIN. For more information about Z-Tel and its innovative services, please visit www.ztel.com.

About Integral Access
Integral Access (http://www.integralaccess.com) provides a carrier-class, IP based multi-service access platform for delivery of converged voice and data. It is the only packet-based access platform to utilize a label switching architecture to enable carriers to offer differentiated services and combine voice/data on next generation IP-based networks, as well as traditional circuit switched infrastructures. The company offers a complete access platform, which includes central office, campus, and in-building aggregation platforms; broadband Loop Carrier, customer premises equipment; and an operations management system for network control and services management.

Integral Access Contact:

Guy Chenard
Vice President of Marketing & Business Development
978-367-7510

gchenard@integralaccess.com

Z-Tel Communications Contact:

Andrew Graham
Corporate Counsel
813 233-4567
 

agraham@z-tel.com