Frontier Extends Network into Southeast Through Agreement With Williams
Expansion Connects 20 More Cities to Frontier Network; Anchor Tenant for Williams Network in Southeast
ROCHESTER, N.Y., and TULSA, Okla., July 22 /PRNewswire/ -- Frontier
Corporation (NYSE:FRO) and Williams (NYSE:WMB) today jointly announced that
Frontier is expanding its optronics network nearly 3,000 route miles in the southeast
United States. Williams is providing Frontier with multiple fiber-optic routes connecting
three fully-redundant fiber rings through Houston, Atlanta, Tampa and Miami, in a $68
million deal. This is among the largest in a series of transactions in which Williams has
leveraged capacity on its rapidly-expanding fiber network to reduce capital costs and
implement its own network expansion.
Both companies plan to release quarterly earnings today. The two companies called the
agreement mutually beneficial, since each addresses different market segments.
Frontier's target markets are small to medium-sized businesses and carrier customers
with high-bandwidth requirements. Williams is the only broadband network with an
exclusively wholesale strategy; its customers include regional Bell operating companies,
long distance service providers, interexchange carriers, local exchange carriers, internet
service providers and utilities.
"Since we are building our network with our customers' needs in mind, we looked for a
network expansion strategy that would fit those requirements," said Joseph P. Clayton,
president and chief executive officer of Frontier. "Williams provided us with a solution
that made good economic sense, added additional routes for reliability, and provided
customers in the southeast quicker access to our optronics network. We also agreed to
exchange capacity and work cooperatively with Williams where it is cost-effective and
complements our respective networks."
Frontier's base 13,000 mile 24-strand national fiber network is now scheduled for
completion in early 1999. An additional 1,600 miles of OC-48 capacity in the northwest
U.S. will come on-line before year-end. With these southeast rings, Frontier's network
will become an 18,000-mile system connecting 120 cities in an 11-ring design by
year-end 1999.
"Frontier is putting together one of the most reliable, scaleable, robust and far-reaching
next-generation networks in the industry today," said Clayton. "The additional fiber rings
in the southeast provide us with facilities touching key business hubs. Our goal is to be
the preferred network backbone supplier to heavy-lifting bandwidth users, such as ISPs
and data-intensive or Web-centric businesses. This additional capacity will allow us to
extend the reach of our ATM and IP solutions to a broader base of those customers."
As part of its optronics network, Frontier will utilize state-of-the-art electronics and DWDM (dense wave division multiplexing) equipment. DWDM optimizes the capacity and today can turn each individual fiber strand into multiple "virtual" fibers.
Howard E. Janzen, president and chief executive officer of Williams Communications, noted, "The agreement between Williams and Frontier is the first step in what we hope is a long-term strategic relationship between our two companies. Customers such as
Frontier are key to expanding our wholesale network and reducing our capital costs.
We are pleased to offer Frontier the most cost effective solution for a reliable, secure,
leading-edge network in the southeast. This transaction, and others like it, capitalize on
Williams' core competency in broadband network construction."
The Williams network will expand to 18,000 miles by the end of 1998 and to 32,000 miles connecting 100 cities by the end of 2001. Williams was the first carrier to introduce ATM technology as the core transmission platform, using OC-192 transport systems with DWDM to deliver up to 160 gigabits per second in 16 waves on a single fiber. A minimum of 96 fibers is installed in every build, with multiple conduits -- one now and two for future fiber requirements.
A map of Frontier's network, including the new southeast segments, is available in the
company's website at frontiercorp.com. Information about Williams' present
and planned network and a system map can be found at willtales.com. |
