[Metromedia Fiber Network Signs $33.2 Million Contract With PSINet to Provide Dark Fiber Network in Northeastern US]
NEW YORK--(BUSINESS WIRE)--May 12, 1998--Metromedia Fiber Network, Inc. today announced the signing of a $33.2 million, 20 year contract with PSINet Inc. to lease PSINet dark fiber infrastructure in the Northeastern corridor of the United States. PSINet is the first Internet Service Provider (ISP) to take advantage of Metromedia Fiber Network's dark fiber service offering.
"Metromedia Fiber Network is introducing the ISP marketplace to a new concept in network infrastructure -- dedicated dark fiber," said Howard Finkelstein, President Metromedia Fiber Network. "As Metromedia Fiber Network's first ISP customer, this contract with PSINet marks a major milestone for us. PSINet is a leader in the Internet marketplace, and their recognition of the value of our unique service offering indicates that the ISP market is ready to accept dedicated dark fiber as a new way to build their businesses."
Under the terms of the agreement, PSINet has procured a long term lease for multiple fibers for its exclusive use from Metromedia Fiber Network in the New York Metropolitan Area, the Washington, D.C. Metropolitan Area, and the corridor connecting New York and Washington, D.C., passing through Newark, Philadelphia, Wilmington, and Baltimore. PSINet will use this infrastructure to connect various points of presence and data centers throughout the region.
Dedicated dark fiber offers many advantages over traditional leased capacity including the ability to add bandwidth as business requirements increase with no corresponding increase in cost. PSINet will be able to utilize the newest optical electric equipment to light the fiber, upgrading the equipment as required for more capacity while using the same fiber strands through the twenty year life of the contract.
"With the addition of Metromedia Fiber Network's state-of-the-art network, we believe we have sufficient bandwidth for our backbone capacity requirements in the New York and Washington, D.C. metropolitan areas, as well as between the two cities. These represent some of the most lucrative telecommunications markets in the world given the large numbers of business and government users," said William Schrader, Chief Executive Officer, PSINet. "With this network expansion, we will be in a position to reach these markets with our current Internet connectivity services and with new types of services such as IP/Voice products, thereby maintaining our leadership position in the business communications marketplace in the 21st Century." |
