[Metromedia Fiber Network Signs $36 Million Agreement with Intermedia]
NEW YORK--(BUSINESS WIRE)--May 18, 1998--Metromedia Fiber Network, Inc. (NASDAQ:MFNX) today announced the signing of an agreement with Intermedia Communications, Inc. (NASDAQ/NM:ICIX) to lease to Intermedia fiber optic rings in the New York, Philadelphia, Washington, D.C., and Chicago metropolitan areas. The term of this intra-city agreement is 15 years, with the total value of $36 million payable over that period.
"This contract with Intermedia is evidence of the critical role Metromedia Fiber Network is playing in the development of the integrated services market," said Howard Finkelstein, President of Metromedia Fiber Network. "Intermedia offers a wide range of communications services, including being a major Tier 1 Internet service provider. Many of these services will be carried by our fiber infrastructure in the New York, Philadelphia, Washington, DC, and Chicago areas - we are thrilled to add this important player in the national services field to our growing list of customers."
In each of the four cities, metropolitan fiber optic rings provided by Metromedia Fiber Network will connect Intermedia's points of presence with key central and tandem switching offices.
"This contract with Metromedia Fiber Network enables us to achieve our aggressive network expansion in these vital markets quickly and cost-effectively," said Bob Rouse, Intermedia's executive vice president, engineering, systems and operations. "Metromedia's state-of-the-art fiber infrastructure adds significant value to our network, ensuring access to low cost unbundled network elements (UNEs) used to provision Intermedia's high-quality integrated services portfolio."
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