Metromedia Fiber Network Signs $300 Million Agreement with WinStar For Dark Fiber Infrastructure Throughout the United States and Europe
Plans Major Network Expansion to 25 New U.S. Markets, First Six Announced
NEW YORK--(BUSINESS WIRE)--Oct. 5, 1999-- Metromedia Fiber Network (NASDAQ: MFNX) today announced the signing of its second dark fiber agreement with WinStar Communications (NASDAQ: WCII) valued at more than $300 million. Metromedia Fiber Network also plans for a major U.S. intra-city network expansion to 25 markets, including the six newly announced infrastructure builds throughout the metropolitan areas of Denver, Miami, Phoenix, Detroit, Cleveland and St. Louis. These expansions will bring Metromedia Fiber Network's total planned markets to over 40 in North America and Europe.
Winstar Agreement
Utilizing Metromedia Fiber Network's dark fiber infrastructure, WinStar will expand its presence in local markets, interconnecting its switches and hubs over a one hundred percent photonic network. According to terms of the agreement, WinStar will obtain dark fiber in substantially all of Metromedia Fiber Network's planned U.S. networks, plus several previously announced European dark fiber networks and its German National Ring. WinStar has also agreed to acquire fiber into buildings throughout these markets and plans to take additional dark fiber strands, over and above its existing agreement with MFN, in a number of metropolitan areas including New York, Philadelphia, Washington, DC, Chicago and San Francisco.
"The size and scope of our agreement with WinStar is significant. It clearly proves the inherent value of dark fiber as an enabler of competition, while helping Winstar to anchor the expansion of its integrated broadband services on a local, national and global level," said Howard Finkelstein, president of Metromedia Fiber Network. "WinStar is clearly a leader in providing competitive broadband communications services to businesses, including local and long distance voice, high-speed Internet access, data and information services. By combining our metropolitan dark fiber infrastructure with its own Wireless Fiber(SM) and long haul networks, WinStar can continue to carve out a unique position as a provider of broadband services to businesses over its own network," added Finkelstein.
Metromedia Fiber Network will provide the direct fiber connectivity to specific buildings under the agreement in all of its local markets through the Company's pure photonic links that connect buildings directly to its supertrunk fiber backbone. These access ramps facilitate pure photonic transmission of voice, data and video that is not possible over the existing copper infrastructure deployed by the local incumbent telephone companies in terms of speed, clarity and reliability.
"Dark fiber continues to play a critical role in the deployment of WinStar's broadband network," said William J. Rouhana, Jr., chairman and CEO of WinStar. "Once again, we chose Metromedia Fiber Network as our infrastructure provider because of their leading edge network architecture and their expansive metropolitan area reach. In addition, by combining Metromedia Fiber Network's direct fiber connectivity to specific buildings with the use of our own premier fixed wireless broadband connections, we will be able to accelerate the addition of more buildings to our network, providing us with greater market coverage to serve our rapidly expanding customer base."
Metromedia Fiber Network Market Expansion
Metromedia Fiber Network's announcement of six new metropolitan area networks will bring its dark fiber infrastructure to a total of 25 announced networks in North America and Europe. By expanding into Miami, a key hub to international trade and an important telecommunications link to Latin America, Metromedia Fiber Network will add a sixth major US market on the East Coast while with Denver and Phoenix the company gains a stronger market presence in two of the West's key centers of technology and business.
The Detroit, St. Louis and Cleveland expansions, combined with Metromedia Fiber Network's recent launch of its Chicago metropolitan area market, provides the company with a broader and more visible presence in the Midwest, while strategically expanding its nationwide footprint.
About Winstar Communications
Winstar Communications, Inc. is a pioneer in providing business customers with broadband communications services, including local and long distance phone service, as well as high-speed Internet access, data and information services. WinStar provides these Wireless Fiber(SM) services in more than 30 U.S. markets over its own local broadband networks, using its licenses in the 28 and 38 GHz spectrum, which are connected to the company's nationwide fiber-optic network. In addition, the company offers Wireless Fiber services in four markets outside the U.S. In the past year, Winstar has become one of the largest Internet companies in the U.S. Recently, the company announced a destination Web site for businesses, Office.com(SM), a service from WinStar. Winstar is a registered trademark, and Wireless Fiber and Office.com are service marks of Winstar Communications, Inc.
Except for any historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties, which are described in the company's SEC reports, including the 10-K for the period ended December 31, 1998, and the 10-Q for the period ended June 30, 1999.
About Metromedia Fiber Network
Metromedia Fiber Network is building metropolitan fiber optic infrastructure in the local loop in strategic top tier markets, enabling technologically sophisticated organizations to implement the latest data, video, Internet and multimedia applications. By offering virtually unlimited, unmetered bandwidth at a fixed cost, Metromedia Fiber Network is eliminating the bandwidth barrier and redefining the way broadband capacity is sold. In addition to its current nationwide expansion in 12 major US and Canadian cities, Metromedia Fiber Network is entering the international market with fiber optic network builds in Germany, the UK and Holland.
Metromedia Fiber Network recently acquired AboveNet Communications, the architect of the global one-hop network and the leading provider of Internet connectivity and co-location solutions for high-bandwidth and business critical applications. The combined company will facilitate the explosive growth of e-commerce and advanced Internet applications by delivering secure, reliable and scalable optical networks to Internet content and service providers, carriers and enterprise users, worldwide. For more information about Metromedia Fiber Network, please visit the company's Web site at 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 Forms 10-K, 10-Q and S-4. |
