[MFS Network Technologies Finalizes Sale of Duct Capacity Along New York State "Infothruway"]
OMAHA, Neb., April 14 /PRNewswire/ -- MFS Network Technologies (MFSNT), a subsidiary of Able Telcom Holding Corporation, has ''sold out'' a major portion of additional conduit capacity available on the 542-mile fiber optic communications system that parallels the New York State Thruway Authority's superhighway system. MFSNT announced today that negotiations are complete and an agreement has been signed with Williams Communications, a unit of Williams. The agreement will give Williams Communications the right to use remaining key duct capacity along secure NYSTA rights-of-way. Under a separate agreement, Williams Communications will purchase ''Off-NYSTA'' duct capacity directly from MFS Network Technologies. Finally, MFSNT will also provide Williams Communications with fiber optic cable installation and maintenance along the entire 725-mile fiber optic communications system.
''Williams Communications is the final large user to sign an agreement leasing excess capacity along this premier transportation corridor. A limited amount of dark fiber and duct capacity is still available,'' confirmed Stacy Jenkins, President of MFSNT. Marketing and leasing rights-of-way on behalf of owners is part of a financing strategy that MFSNT has refined over a number of years, according to Jenkins. ''Revenues to support the NYSTA project were generated by the sale of excess fiber optic and conduit capacity. Lease income is being shared with the New York State Thruway Authority to provide an ongoing source of revenue,'' he continued. ''Under the terms of the 20-year lease agreements that were executed on Monday, April 12, MFSNT and NYSTA will share the $25.7 million in revenue generated from use of the ducts located along the NYSTA rights-of-way. NYSTA will receive approximately one-third. MFSNT will receive an additional $9.9 million in revenue for the portions of the Cleveland to Manhattan ducts that are not located within the NYSTA rights-of-way. Also included, is an agreement for MFSNT to provide Williams with fiber optic cable installation services valued at $8.4 million. These lease agreements are especially significant to MFSNT financial performance because the majority of the costs associated with installing the ducts were expended and accounted for in 1997 and 1998.''
Construction of the $140 million network began in the spring of 1997. The completed network now delivers enhanced fiber optic capabilities extending south from Albany to Manhattan, continuing west from Albany to the western edge of the New York state line, ultimately terminating in Cleveland, Ohio. |
