ITC^Deltacom is working to assess the effect of Hurricane Katrina on its business, the CLEC reported to the U.S. Securities and Exchange Commission today, but the total cost is unknown.

ITC suffered widespread service disruptions in New Orleans and in Biloxi, Gulfport and Hattiesburg, Miss. Revenue from those markets represented an estimated 2% of ITC’s $134.1 million in second-quarter revenue, the company reported.

“[ITC] has made intensive efforts to restore service to its affected customers as quickly as practicable under the circumstances,” ITC’s filing said. “However, the widespread damage and human and economic dislocations resulting from the hurricane have prevented resumption of service to all but a small number of customers in the New Orleans, Biloxi/Gulfport and Hattiesburg markets.”

“The company expects in the foreseeable future to face continuing restrictions in those affected markets from reduced customer operations and demand for service, employee availability, and availability of network facilities and services from other service providers, including BellSouth and Entergy,” ITC added.

The CLEC’s service and its network were affected to a lesser degree in Mobile, Ala.; Pensacola, Fla.; Baton Rouge, Lafayette and Lake Charles, La.; and in Jackson and Tupelo, Miss., though service in these markets “has been largely restored,” ITC said.

Although the company said it did not sustain significant property damage, it expects to incur costs repairing its network, restoring service and redeploying operations and sales staff. It is still working to quantify the financial impact of the hurricane on its business as well as the amount that will be offset by insurance.