MasTec and Telergy Announce Five-year $300 Million Exclusive Preferred Provider Agreement
June 14, 1999 08:31 AM
MIAMI--(BUSINESS WIRE)--June 14, 1999--MasTec, Inc. MTZ and Telergy, Inc. announced today an exclusive preferred provider agreement under which MasTec will provide end-to-end network solutions for the Syracuse, New York based telecommunications company through May 2004.
Under the agreement, MasTec will provide design, installation, construction, procurement and maintenance services for the build-out of Telergy's internal and external networks, including Telergy's planned expansion into New York City, which will create a network reaching 15 million customers in one contiguous region. Telergy anticipates spending approximately $300 million for the services to be provided by MasTec over the next four years, which Telergy will fund through capital markets transactions.
The MasTec - Telergy relationship dates to 1996 when MasTec deployed Telergy's initial fiber optic backbone network in upstate New York. To date MasTec has deployed 89,300 fiber miles for Telergy. Telergy recently repaid $40 million of vendor financing previously extended by MasTec. The new agreement does not provide for MasTec financing.
Pat Barrett, President of Telergy, stated: "The ability to deliver products and services through our network depends on the quality and integrity of the network. That is why we have entered into this preferred provider agreement with MasTec, the industry leader in the design, build and maintenance of internal and external telecommunications networks. We will not take any chances with our network. If you want to be a leader you must partner with leaders."
Joel-Tomas Citron Vice Chairman and President of MasTec, stated: "This agreement culminates an evolving relationship with Telergy that began three years ago and reflects our strategy of seeking closer relationships with our customers. By helping build Telergy's initial network, we have positioned ourselves to benefit from the significant expansion of Telergy's network in the next several years. We look forward to continuing to work with Telergy as it extends its reach in the fast-growing northeast telecommunications market."
MasTec is one of the preeminent end-to-end network service providers in North America. MasTec builds, installs and maintains internal and external networks supporting the internet, internet related applications, and other communications facilities for leading telecommunications, cable television, Fortune 500 corporations and energy companies. For more information please contact Joel-Tomas Citron, Vice Chairman and President at 305-406-3110, or Carmen M. Sabater, Chief Financial Officer at 305-406-1866.
Telergy is a leading facilities-based provider of integrated communication services and technology advanced high bandwidth fiber optic capacity to telecom carriers and large and medium sized business in New York State and is expanding throughout the Northeastern United States.
|
