UNE-P’s first victim, ZTel

Supreme court decision that put the stake through the UNE-P, has all but taken toll on Z-Tel Technologies, a small CLEC based in Florida. The company announced that it is going to cut its head count by 150. The company has been delisted from the NASDAQ and only recently president and CEO Greg Smith and CTO Charles McDonough, quit Z-Tel to “form a new company based on an enhanced service platform that had been under development at Z-Tel’s Atlanta facility,” reports Light Reading. Z-Tel was the company that powered MCI’s local “Neighborhood” service and in the good times, the company had about 175,000 consumer and 45,000 businesses as its customers. The company is trying to transform itself from a phone company that leased lines from giants (under UNE-P model) to a facilities based IP provider. Z-Tel has just launched its VOIP service in Tampa, Fla., and Atlanta. New York, is next.