related european infastructure developments/progress...from yahoo <I've snipped out some of the company specific financial paragraphs>
dailynews.yahoo.com
Sunday August 15 2:13 AM ET
KPNQwest Sales Set To Soar On Internet Lift
By Neal Boudette, European Telecommunications Correspondent
FRANKFURT, Germany (Reuters) - Dutch-American telecommunications venture KPNQwest is riding a wave of Internet-driven demand that should take it to more than $1 billion in annual sales in the next few years, the company said Friday.
The venture of former Dutch monopoly phone company KPN NV and Qwest Communications International Inc of the United States has started building a series of high-speed data networks linking major European cities.
With the Internet sparking a surge in demand for high-bandwidth capacity, KPNQwest is banking on explosive growth, Chief Executive Jack McMaster told Reuters in an interview.
``Even with market share in the single digits, we could be a company with a revenue stream in the billions,' McMaster said.
Researchers estimate that soaring Internet use will drive the western European market for data communications services to $224 billion by 2001.
KPNQwest started operations in April and expects sales to exceed $300 million in its first 12 months in business. A spokesman later put the sales target at $350 million to $400 million.
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KPNQwest is building a series of circular Internet protocol networks linking 39 European cities. It has completed two of its ``eurorings' serving 14 cities including London, Paris, Amsterdam, Frankfurt and Brussels.
Construction of a third in Germany should be completed by the middle of next year. Construction on a fourth in Italy is due to begin this quarter, with completion around the third quarter of next year.
Each ring costs at least $200 million to build. KPNQwest would consider acquisitions to fill in gaps in its network, but is really focusing now on expanding the eurorings, McMaster said.
When completed in 2001, the network is supposed to span 13,000 km (8,080 miles). Total capital investment in infrastructure should be $1 billion to $1.2 billion, he said.
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