Wednesday February 10, 11:56 am Eastern Time
Williams unit boosts network spending by $2 bln
TULSA, Okla., Feb 10 (Reuters) - Williams Communications said on Wednesday that increased demand for its fiber-optic networking services has prompted it to boost capital spending by $2 billion to finish connecting 125 cities by 2000, a year earlier than previously planned.
Williams Communications, a unit of Williams Cos Inc., said it now plans to spend $4.7 billion on building the network, up from an initial commitment of $2.7 billion. It said the accelerated plan would expand its current 19,000-mile network to 26,000 miles by the end of this year and to 32,000 miles in 2000.
''Our current demand for network capacity and services is expected to continue to increase, so our plan to expand and accelerate network construction is perfectly timed,'' said Frank Semple, president of Williams Network.
Sources of funding will include Williams' planned initial public offering of its communications unit, a related high-yield bond offering and revenue from fiber transactions and network services, the company said.
Williams provides network services to telecommunications carriers. Its customers include SBC Communications Inc., (NYSE:SBC - news) U S West Inc., Concentric Network Corp. and WinStar Communications Inc.
On Monday, SBC announced plans to take up to a 10 percent stake in Williams Communications in the unit's IPO, scheduled for the second quarter. Williams Communications said it would serve as SBC Communications' preferred provider for all domestic U.S. transport service.
In December, Williams, which has one of the four largest long-distance networks in the United States, announced a $640 million agreement that included providing WinStar Communications Inc. (Nasdaq:WCII - news) with four strands of fiber over approximately 15,000 route miles. |
