Metromedia Fiber Network Signs Agreement With WinStar
in Excess of $40 Million
July 30, 1998
NEW YORK--(BUSINESS WIRE) via NewsEdge
Corporation --
WinStar Gains Access To Metromedia Fiber Network's
Intra-City
Networks On Both Coasts, Including The Recently
Announced San
Francisco Network
Metromedia Fiber Network, Inc. (NASDAQ:MFNX)
today announced the signing of an agreement with
WinStar Communications, Inc. (NASDAQ:WCII) under
which payments to Metromedia Fiber Network are to
exceed $40 million. Under the 25 year agreement,
Metromedia Fiber Network will provide WinStar with
high-capacity fiber optic infrastructure on its New York
network and on the intra-city networks it is developing in
Washington D.C., Philadelphia, Chicago and San
Francisco, in addition to fiber on the New York to
Washington D.C. inter-city corridor.
This contract represents an expansion of the existing
relationship between the two companies. WinStar had
previously acquired leased fiber rights on Metromedia
Fiber Network's backbone in New York City to
interconnect the hub sites and switch in their New York
City network. Today's announcement makes WinStar the
first customer to take advantage of Metromedia Fiber
Network's infrastructure on both Coasts. WinStar is
leasing fiber covering large portions of the Metropolitan
Areas in each market, including capacity on all 150 miles
of the currently planned San Francisco Bay Area build.
"WinStar is a new and innovative player in the
communications industry, ready to take advantage of the
speed, reliability, and value that our fiber optic
infrastructure provides. We are particularly pleased that
it has so quickly seized the opportunity in our newest
market, becoming our first customer in the San Francisco
Bay Area," said Howard Finkelstein, President of
Metromedia Fiber Network. "This contract demonstrates
that our strategy of building intra-city networks within
Tier One markets is extremely valuable, especially for the
new breed of telecom carrier, such as WinStar, whose 38
GHz technology quickly and efficiently extends the
broadband capacity of our fiber optic network to end
users."
Under the terms of the agreement, WinStar will lease
fiber rings connecting vital business districts and major
high-tech centers within the San Francisco, New York,
Philadelphia, Washington, D.C., and Chicago
Metropolitan Areas. These rings, provided by
Metromedia Fiber Network, will connect WinStar's
switches and hub sites with each other and with key
central and tandem switching offices. Metromedia Fiber
Network's inter-city link between New York and
Washington, D.C. will interconnect WinStar's network
facilities on the East Coast, including New York,
Philadelphia, Washington, D.C., Stamford, Newark and
Baltimore.
"Metromedia Fiber Network has given us the ability to
cost effectively interconnect our hub sites and switches
in important metropolitan areas on both the East and
West, and to rapidly interconnect all of our markets
along the Eastern Corridor," said William J. Rouhana, Jr.,
CEO of WinStar Communications. "With this increased
backbone capacity, we have ensured our ability to
enhance our service offerings while continually adding
new customers to our network."
WinStar Communications, Inc. is a national local
communications company, serving business customers,
long distance carriers, fiber-based competitive access
providers, mobile communications companies, local
telephone companies and other customers with
broadband local communications needs. The company
provides its Wireless Fiber(SM) services using its
licenses in the 38 GHz spectrum. The company also
provides long distance, data, Internet and information
services. More information on WinStar is available on
the World Wide Web at www.winstar.com.
Metromedia Fiber Network provides technologically
advanced, high-bandwidth, private, fiber optic
communications infrastructure within major U.S. markets.
The Company provides its infrastructure to
communications carriers competing in the local, long
distance, wireless, and Internet markets as well as
corporate/government customers requiring secure
communications networks for the transmission of large
amounts of voice, data and video. Metromedia Fiber
Network currently operates a fiber optic metropolitan
area network in New York and is developing local fiber
optic infrastructure along strategic routes in San
Francisco, Chicago, Philadelphia, Washington D.C. and
Boston and intercity links connecting these local
markets. The Company has established a joint venture,
known as ION, with Racal Telecom of the United
Kingdom that will begin providing broadband capacity
between the United States and the United Kingdom later
this year. For more information about Metromedia Fiber
Network, please visit the company's Web site at
www.mmfn.com.
This news release contains certain forward-looking
statements that involve risks and uncertainties. Factors
that could cause or contribute to such risks and
uncertainties include, but are not limited to, general
economic and business conditions, competition,
changes in technology and methods of marketing, and
various other factors beyond the Company's control.
This also includes such factors as described from time to
time in the SEC reports filed by Metromedia Fiber
Network, including the most recently filed Form 10-Q.
CONTACT: Media Relations Investor Relations | Judy
Sweeney/David King Jeff Luth | G.S. Schwartz & Co G.A.
Kraut Co. Inc. | 212-725-4500 212-696-5600 |
dking@schwartz.com
[Copyright 1998, Business Wire] |
