PAETEC Holding Corp.

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PAETEC Holding Corporation
IndustryBusiness voice and data telecommunications
Fateacquired by Windstream Communications
FoundedRochester, New York May 1998 (1998-05)
DefunctDecember 2011
HeadquartersPerinton, New York
Area served
California, Delaware, Florida, Iowa, Michigan, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Virginia
Key people
Arunas A. Chesonis, CEO, Chairman, & Founder of PAETEC
Richard T. Aab, Vice Chairman & Co-Founder of US LEC
ServicesVoice services
Data services
Software solutions
Customer premises equipment leasing
Managed services
RevenueIncrease US$1624 million (2010)[1]
Decrease US$45 million (2010)[1]
Decrease US$(58 million) (2010)[1]
Total assetsIncrease US$2008 million (2010)[1]
Total equityDecrease US$137 million (2010)[1]
Number of employees
Increase 4639 (2010)[1]
Subsidiaries47 total (2010)[2]

PAETEC Holding Corporation was a FORTUNE 1000 telecommunications company headquartered in Perinton, New York, United States.[3] It was founded as the private company PaeTec Communications, Inc. in 1998 by Arunas A. Chesonis. In 2007 it merged with US LEC and then Cavalier Telephone Company and became a publicly traded company, and in 2011 it was acquired by Windstream Communications.

PAETEC provided local and long-distance voice services, data and Internet services, and software applications, among others. PAETEC provided service to medium and large businesses, colleges and universities, hospitals, hotels, governmental organizations and other institutions within its service area.

Mergers and acquisitions[edit]

  • September 9, 1999 - Purchased CAMPUSLINK Communications Systems, a privately owned telecommunications company based in Ann Arbor, Mich.
  • August 19, 2004 - Purchased Covista North East Call Zone (Covista Still Privately owned company, also operating as Total Tel)
  • January 4, 2005 - Purchased American Long Lines, a privately owned telecommunications company.
  • February 28, 2007 - Acquired Charlotte, NC based telecommunications company US LEC, becoming the publicly traded PAETEC Holding Corp
  • October 12, 2007 - Acquired Allworx Corp
  • February 8, 2008 - Acquired McLeodUSA
  • December 6, 2010 - Acquired Cavalier Telephone Corporation
  • December 28, 2010 - Acquired FTS Ltd. subsidiary, Leap RevChain
  • May 31, 2011 - Acquired XETA Technologies, Inc.
  • December 1, 2011 - Acquired by Windstream Communications

PAETEC owned the naming rights to PAETEC Park, a soccer-specific stadium in nearby Rochester, New York, from its opening in 2006 to 2008.

Name origin[edit]

Former headquarters in Perinton, New York, now a Windstream regional office

The name PAETEC was derived from the initials of the first names of its founder's wife Pam and four children Adam, Erik, Tessa and Emma. In earlier days, the name was displayed as PaeTec Communications, Inc. After the acquisition of US LEC, the new merged entity became PAETEC Holding Corp., however, the company is simply referred to as PAETEC.


Since its acquisition, PAETEC (also known as STARNET PAETEC) has been listed several times as the provider of VOIP services to phone scammers.[4][5][6]



  1. ^ a b c d e f PAETEC Holding Corporation (2011-03-16), FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2010, Washington, D.C.: U.S. Securities and Exchange Commission, File 000-52486, film 11692382, retrieved 2011-03-28
  2. ^ PAETEC Holding Corporation (2011-03-16), FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2010, Washington, D.C.: U.S. Securities and Exchange Commission, Exhibit 21, File 000-52486, film 11692382, retrieved 2011-03-28
  3. ^ Daneman, Matthew (2010-08-06). "PAETEC cuts loss to $7.5M". Democrat and Chronicle. Retrieved 2010-08-11. PAETEC Holding Corp. is edging closer to — but still falling short of — profitability. The Perinton-based telecommunications company reported a loss of $7.5 million for the quarter that ended June 30, an improvement from the $16.5 million it lost in the same quarter a year earlier and from the $9.5 million it lost in the January–March quarter this year.
  4. ^ "".
  5. ^ "Ripoff Report".
  6. ^ "Who Calls Me".
  7. ^ "?". Rochester Business Journal. October 16, 2007. Archived from the original on October 17, 2007.
  8. ^ Rochester Institute of Technology. "Imagine RIT Innovation and Creativity Festival". Retrieved 2008-04-19.

External links[edit]