Industry news:
February 02, 1999 15:30
Metromedia Fiber Network Leases Dark Fiber Infrastructure To America Online
Agreement Allows AOL to Lease High-Speed, High-Capacity
Internet Infrastructure in Additional Tier One Cities
Unleashing the power of fiber optics for delivering high bandwidth Internet applications, Metromedia Fiber Network, Inc. (NASDAQ:MFNX) today announced a $10.8 million, multi-year dark fiber lease agreement with America Online (NYSE:AOL), the world's leader in branded interactive services. AOL will lease a local fiber distribution network in the Washington, D.C. metropolitan area. In addition, the companies reached a related agreement that allows AOL to acquire additional dark fiber in other Tier One cities where Metromedia Fiber Network is currently deploying infrastructure.
Metromedia Fiber Network is constructing leading edge fiber-based distribution networks in the local loop, allowing companies like AOL to provide ultra-high capacity, high-speed communications pipelines to their subscribers. Utilizing Metromedia Fiber Network's local metropolitan area network, AOL will benefit from an alternative local loop strategy to continue to offer its members the best possible online experience as well as the ability to rapidly increase bandwidth in a secure and reliable environment.
"The demand for data, text and image intensive Internet applications is growing at an exponential rate, driving the bandwidth required to move those applications between computers to greater levels and straining the industry's traditional copper-based infrastructure," said Howard Finkelstein, president of Metromedia Fiber Network. "Already there is pent-up demand for increasing bandwidth capacity and speed in the local loop. AOL has recognized this and we're thrilled that it has chosen chosen Metromedia Fiber Network as a conduit for bringing high-speed, high-capacity, interactive Internet services to consumers."
"The demand for high-speed Internet access continues to grow at a very rapid pace. AOL Internet traffic has more than doubled in the past six months to more than two billion URLs per day," said Joe Barrett, vice president of Internet operations for America Online. "I am confident that Metromedia Fiber Network's dark fiber will contribute to our network as we continually expand our capacity, enabling us to continue to improve the online experience of our members."
About Metromedia Fiber Network
Metromedia Fiber Network is building fiber optic infrastructure in the local loop in strategic Tier One 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.
Utilizing Metromedia Fiber Network's infrastructure, customers are able to rapidly deploy state-of-the-art optical networks. Communications carriers and Internet Service Providers gain local loop connectivity to the most highly populated metropolitan areas. Corporate and government customers benefit from private building-to-building networks featuring the fastest transmission speeds available and the highest levels of reliability and security. In addition to its current nationwide expansion in 11 major cities, Metromedia Fiber Network is planning to enter the international market with a fiber optic network build in Germany, and the provision of transatlantic bandwidth capacity through International Optical Network (ION), a joint venture with Racal Telecom of the United Kingdom. For more information about Metromedia Fiber Network, please visit the company's Web site at www.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 Form 10-Q.
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