RCN Announces Joint Network Expansion with Level 3 Communications; Companies Share Cost of Deploying New Fiber in Manhattan, Boston
February 16, 1999 12:27 PM
PRINCETON, N.J., Feb. 16 /PRNewswire/ -- RCN Corporation RCNC announced today that it had reached joint construction agreements with Level 3 Communications, Inc. LVLT in several markets, through which the companies will share the cost of constructing their respective state-of-the-art fiber optic networks.
The agreements, which follow a deal announced last month through which RCN purchased cross-country network capacity from Level 3, will allow RCN to deploy additional network in Boston and New York faster and at a lower cost. These agreements strongly support RCN's goal of being the low cost operator in all of the markets it serves.
"These deals with Level 3 allow us to both make more efficient use of our capital and speed the pace of construction," said RCN Chairman and CEO David C. McCourt. "Level 3 and RCN are building state-of-the-art fiber optic networks. Since our networks will overlap in major cities, it makes perfect sense to share the costs of construction and other aspects of deployment in these areas."
Specifically, RCN announced it had expanded its master agreement with Level 3 to add network serving the Boston market through deployment of two new conduits running through the Boston-area city of Cambridge. RCN and Level 3 are also conducting joint trench work in the Upper East Side, Midtown and Downtown areas of Manhattan comprising approximately 35 miles of new fiber optic network deployment in that market. Manhattan is one of RCN's most active markets, with more than 600 buildings currently wired for the company's phone, cable and Internet services.
"We look forward to continuing our long-standing relationship with RCN through these mutually beneficial joint construction agreements," said James Q. Crowe, President and CEO of Level 3. "Success for Level 3 and RCN depends upon the fast and efficient deployment of superior fiber optic networks. These agreements will aid both companies in achieving this goal."
Level 3 is a communications and information services company that is building the first international network optimized for Internet Protocol technology. The Level 3 Network will combine both local and long distance networks, connecting customers end-to-end across the U.S. and in Europe and Asia.
About the Network
RCN's True Local Network is a unique broadband fiber optic platform capable of offering the full suite of communications services -- including fully-featured voice, video and high-speed Internet -- to residential customers. The network employs SONET ring backbone architecture and localized nodes built to ensure its state-of-the-art fiber optics travel to within 900 feet of RCN customers, with fewer electronics and lower maintenance costs than existing local networks. Upon completion, RCN's East and West Coast local fiber optic networks will serve a densely-populated area comprising nearly 40% of the U.S. residential communications market spread over just 6% of its geography.
About the Company
RCN Corporation RCNC is the nation's first and largest single-source, facilities-based provider of communications services to the residential market, the largest regional Internet service provider (ISP) in the Northeast and one of the nation's largest ISPs. The company is currently providing local and long distance phone, cable television and Internet services in several markets from Boston to Washington, D.C. RCN has expanded its target market to include California's San Francisco to San Diego corridor.
SOURCE RCN Corporation
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