Mark,
Very interesting post. Thanks.
Qwest also owns a 20% equity investment in Apex Global Internet Services, usually called AGIS, a private corporation. AGIS is a first tier ISP, ie, they have a nationwide backbone and peering arrangements and interconnection with the other five national level service providers. AGIS gave QWST the stock in exchange for access to 10,000 route miles of OC-48 capacity. Here's a story on the deal from this past January.
=================================================================
Qwest Secures $260 Million Capacity and Services Sale;
Takes 19.99 Percent Equity Ownership in AGIS; Qwest
Provides SONET Backbone To AGIS
( Business Wire )
( BW)(QWEST)(QWST) Qwest Secures $260 Million Capacity and Services
Sale; Takes 19.99 Percent Equity Ownership in AGIS; Qwest Provides
SONET Backbone To AGIS
Business Editors
DENVER--(BUSINESS WIRE)--January 6, 1998--Qwest today announced a
long-term contract to provide Apex Global Internet Services, Inc.
(AGIS) approximately 10,000 route miles of OC-48 capacity for a
present contract value of approximately $260 million. As part of the
consideration, Qwest will receive 19.99 percent of the common stock
of AGIS and will have a seat on the AGIS board of directors. Qwest
will receive consideration for the capacity in the early years of the
contract plus monthly operations and maintenance fees over the term
of the multi-year agreement.
"Qwest is extremely pleased to have AGIS as a customer and to have
them select the Qwest network as their SONET backbone," said Joseph
P. Nacchio, president and CEO of Qwest. "AGIS has a talented
management team and an historical presence in the Internet community
that presents positive synergies between our two companies."
"Clearly Qwest is in a position to deliver a higher performing
network than their competitors," said Philip J. Lawlor, president
and CEO of AGIS. "The selection of Qwest is attributable to their
highly reliable fiber optic network design and network management
capabilities."
Under the terms of the Agreement, the companies will enter into a
joint marketing arrangement to expand their product and service
offerings to include IP telephony, video conferencing, ATM and frame
relay services. The companies will interconnect their value-added
networks to expand their geographic reach.
The Qwest Macro Capacity Network
Qwest's planned domestic 16,000 mile network will serve over 125
cities, which represent approximately 80 percent of the data and
voice traffic originating in the United States, upon its completion
in the second quarter of 1999. Currently, 3,350 miles are activated
from Los Angeles to Indianapolis; and from Dallas to Houston. Qwest
is also extending its network 1,400 miles into Mexico with completion
slated for late third quarter 1998.
The Qwest Macro Capacity Fiber network is designed with a highly
reliable and secure bi-directional, line switching OC-192 SONET ring
architecture. Upon completion, the network will offer a self-healing
system that provides the ultimate security and reliability by
allowing instantaneous rerouting in the event of a fiber cut.
About AGIS
AGIS (www.agis.net), founded in 1994, provides Internet access to
millions of users via its extensive customer base of Regional Bell
Operating Companies, content providers, large corporations and
Internet Service Providers. Always the technology leader, AGIS was
the first National Service Provider to offer commercial 155 Mbps
connections to the Internet; first to reduce points of failure in a
network by using switching technologies; and first to design a
wholesale business model (so as not to compete with customers by
selling retail access). AGIS offers Internet connectivity from
56Kbps to 155Mbps.
About Qwest
Qwest Communications International Inc. (NASDAQ:QWST) is a
multimedia communications company building a high-capacity, fiber
optic network for the 21st century. With its cutting-edge
technology, Qwest will deliver high-quality voice, data and video
connectivity securely and reliably to businesses, consumers and other
communications service providers. Further information is available
at www.qwest.net .
This release may contain forward-looking statements that involve
risks and uncertainties. These statements may differ materially from
actual future events or results. Readers are referred to the
documents filed by Qwest with the SEC, specifically the most recent
reports on Form 10-K and 10-Q, which identify important risk factors
that could cause actual results to differ from those contained in the
forward-looking statements, including potential fluctuations in
quarterly results, dependence on new product development, rapid
technological and market change, failure to complete the network on
schedule, volatility of stock price, financial risk management and
future growth subject to risks.
--30--jar/sf*
CONTACT: Qwest Communications (Corporate Contact)
Lisa Hempel, 303/291-1708
lhempel@qwest.net
qwest.net
or
Qwest Communications (Investor Contact)
Lee Wolfe, 800/567-7296
lwolfe@qwest.net
qwest.net
or
Alexander Communications (Media Contact)
Alison Schwartz, 303/615-5070
Aschwart@alexander-pr.com
alexander-pr.com
KEYWORD: COLORADO
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED TELECOMMUNICATIONS
(c) 1998 Business Wire. All reproduction, other than for an individual
user's reference, is prohibited without prior written permission.
(c) 1998 Business Wire
Qwest Secures $260 Million Capacity and Services Sale; Takes 19.99 Percent Equity Ownership in
AGIS; Qwest Provides SONET Backbone To AGIS., Business Wire, 01-05-1998. |
