Fiber Network Buildout Stories from Converge!Network Digest:
BROADWING CEO SEES ECONOMICS FAVORING LIT FIBER OVER DARK FIBER
Speaking at an investment conference in New York, Rick Ellenberger, president and CEO of Broadwing said the current economic situation is moving customers toward lit bandwidth services and away from dark fiber. The economics don't favor the expense of capital to light the fiber. Broadwing has already sold and installed six OC-192 circuits . broadwing..com
Broadwing, March 30, 2001
-----
WILLIAMS BOARD OKs SPINOFF OF WILLIAMS COMMUNICATIONS
Williams' board of directors approved a tax-free spin-off of the company’s communications business to Williams’ shareholders in the form of a dividend. Williams will distribute approximately 400 million shares, or about 95 percent of the Williams Communications common stock it currently owns, to holders of Williams common shares on the record date of April 9. Distribution is to occur on April 23. The company says Williams Communications has sufficient capital in hand to meet its needs well into 2002.
williams.com
Williams, March 30, 2001
---------
WILLIAMS COMMUNICATIONS RAISES $1.4 BILLION
Williams Communications raised $1.4 billion in structured notes due 2004. Williams provided indirect credit support for the transaction through a commitment to issue Williams’ equity in the event of a WCG default. The proceeds will be used for capital spending on telecommunications assets. Williams Communications also sold its Canadian enterprise services business unit, Williams Communications Canada, to TELUS for an undisclosed sum.
williams.com
Williams Communications, March 30, 2001
--------
VELOCITA (PF.NET) REPORTS PROGRESS ON NATIONAL FIBER BUILD
Velocita Corp., previously known as PF.Net Communications, reported a higher number of customers and an increase in circuits to existing customers over initial segments of its nationwide fiber network. Velocita has built over 3,250 route miles of conduit in less than 11 months. velocita.com
Velocity, March 30, 2001
In February, AT&T extended its joint construction partnership contract with Velocity contracted to to include an additional 1, 300 route miles. This expanded relationship also allows for Velocita to acquire an additional 7,200 miles of dark fiber, allowing the company to grow its own nationwide network from 10,800 miles to approximately 18,500 miles.
Last September, Velocity (PF.net) appointed Buddy Pickle as its CEO. Pickle formerly served as President and Chief Operating Officer of Teligent and President and Chief Operating Officer of UUNet Technologies.
In June, Robert Annunziata, the former CEO of Global Crossing, agreed to serve as Chairman of the company's board of directors.
Velocita (PF.Net) has raised more than $700 million in financing to support the build-out of its long-haul fiber backbone. The network will have a minimum of six conduits and Lucent's TrueWave RS fiber.
Investors include Odyssey Investment Partners and Koch Industries, which already owns extensive rights-of-way and pipelines across the US. |
