IXC AND PSINET INK NATIONWIDE FIBER DEAL; PSINET ACQUIRES
14,000 Miles of IXC's Technologically Advanced Coast-To-Coast Network
Business Editors & High Tech Writers
AUSTIN, Texas--(BUSINESS WIRE)--Oct. 19, 1999--IXC
Communications, Inc. (Nasdaq: IIXC) and PSINet Inc. (Nasdaq: PSIX)
today announced an agreement for IXC to provide PSINet with
approximately 14,000 miles of fiber backbone on its coast-to-coast
fiber optic network. The fiber purchase enables PSINet to immediately
access a state-of-the-art nationwide network and extend their reach
into the country's top metropolitan markets.
Financial terms of the transaction were not disclosed.
For IXC, the agreement generates continuing revenues, allowing
the company to continue to expand its next-generation network while
making efficient use of excess fiber. For PSINet, the acquisition of a
nationwide fiber network greatly expands their potential customer-base
and solidifies their position as a leading Internet Service Provider
(ISP).
"This agreement further strengthens the strategic relationship
that IXC has shared with PSINet over the past few years," said Mike
Vent, president of IXC's network services and information technology.
"This is a great win-win arrangement for both companies. PSINet
obtains access to the industry's highest performance fiber network and
IXC has a contributing partner for growing its rapidly expanding
next-generation network."
Under the agreement, the exchange will occur in two phases. In
the first phase, during 1999 and 2000, PSINet will acquire fiber on
approximately 14,000 miles of IXC's network. The second phase of the
contract, slated to begin in late 2000, involves the sale of
additional fibers on IXC's network. PSINet has also contracted with
IXC to provide operational maintenance and collocation.
"IXC's network is one of the most technologically advanced
infrastructures in existence today," said William L. Schrader,
chairman, president and CEO of PSINet. "This agreement will provide
PSINet's customers with added capacity and increased reliability as we
enter a new millennium."
The fiber optics being deployed in all stages of IXC's network
development utilize state-of-the-art non-zero dispersion shifted fiber
on secure rights of way. IXC's fiber optic network supports the most
advanced technology, including dense wave division multiplexing
(DWDM), which allows significant increases in the speed and volume of
information carried across the network. The OC-192 equipped network
also supports a full range of advanced communications technologies,
such as synchronous optical network technology (SONET), ATM and frame
relay, that support PSINet's Internet Protocol (IP) optimized network.
Headquartered in Herndon, VA, PSINet is a global facilities-based
Internet Protocol (IP) data communications carrier focused on the
business marketplace. As the first and largest independent commercial
Internet service provider in the world, PSINet offers a broad set of
high-speed corporate LAN connectivity services supporting managed
security and guaranteed Internet, Intranet, electronic commerce, Web
hosting services, and services for other carriers and ISPs. PSINet
operates an international state-of-the-art frame relay and ATM-based,
IP-optimized network consisting of over 800 POPs around the world
serving primary markets in Argentina, Austria, Belgium, Brazil,
Canada, Chile, France, Germany, Hong Kong, Italy, Japan, Luxembourg,
Mexico, the Netherlands, Panama, Republic of Korea, Spain,
Switzerland, the United States, and the United Kingdom. PSINet
information can be obtained by e-mail at info@psi.com, by accessing
the Web site at psinet.com or by calling toll-free in the
US 1-800-799-0676.
IXC's network-based delivery solutions are designed to address
the speed and capacity requirements of the global communications
market. IXC offerings include private line, fast packet (ATM and frame
relay), Internet and long distance switched and dedicated services.
IXC Communications, Inc. is at the forefront of the industry's new
class of emerging domestic and international carriers. IXC is a
publicly traded company listed on Nasdaq under the symbol IIXC. For
more information, visit IXC's Web site at www.ixc-comm.com.
CONTACT: IXC Communications Inc.
IXC Media Contact:
Melissa Jackson, 512/231-5247
mjackson@ixc-comm.com
or
IXC Investor Contact:
Greta Wiechman, 888/267-9478
gwiechman@ixc-comm.com
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