- KDD pays $100 million to use Global Crossing network
- Fujitsu to double production of 10-Gbit/sec multiplexers
- HanseNet deploys CIENA metro transport system
- Allegiance leases dark fiber from Metromedia and Level 3
- Methode Electronics buys opto business of Spire
- Qwest begins trading on NYSE
Global Crossing (Hamilton, Bermuda) and its newly formed joint venture, Asia Global Crossing, have obtained a $100-million agreement with KDD Group (Tokyo, Japan) for capacity on Global Crossing's fiber-optic network. Under the agreement, KDD Group may use its capacity on the Global Crossing network to connect customers in Asia, the U.S., Latin America, and Europe. KDD's initial commitment is to Pacific Crossing 1, Asia Global Crossing's undersea cable connecting Japan and the U.S., which went into initial service in December.
Fujitsu Network Communications Inc. (Richardson, TX), along with its parent company, Fujitsu Limited, expects to invest $500 million over the next two years to expand production of its optical transport systems. Responding to customer demand for its FLASH-192 10-Gbit/sec Synchronous Optical Network add/drop multiplexer, the company will double its current production capacity over the next year. The investment will up production to 1,000 systems per month, an increase of 10 times the output at the beginning of 1999.
German city carrier HanseNet Telekommunikation GmbH (Hamburg, Germany) has deployed the MultiWave Metro optical transport system from CIENA Corp. (Linthicum, MD) in its local network. The system provides HanseNet with connections across Hamburg to a regional carrier. Designed for short-haul applications, MultiWave Metro uses dense wavelength-division multiplexing in point-to-point, mesh, or ring topologies to support Synchronous Optical Network/Synchronous Digital Hierarchy, Internet Protocol, Asynchronous Transfer Mode, Gigabit Ethernet, or private line high-bandwidth services.
Allegiance Telecom (Dallas, TX) has signed its third dark fiber lease agreement with Metromedia Fiber Network Inc. (New York, NY), totaling approximately $130 million over the life of the agreement. Under the 20-year contract, Metromedia Fiber Network will lease local dark fiber infrastructure to Allegiance in the Atlanta, Boston, Chicago, New York, New Jersey, Philadelphia, Washington, D.C., San Jose, San Francisco/Oakland, Los Angeles/Orange County, and Seattle metropolitan areas. In addition, Metromedia Fiber Network will provide Allegiance with long-distance fiber capacity between the key East Coast cities of New York and Washington, D.C.
Allegiance also has made an agreement with Level 3 Communications Inc. (Omaha, NE) to acquire dark fiber on Level 3 rings in Denver, Detroit, and San Diego. Valued at approximately $20 million, this deal also will provide Allegiance with a long-distance fiber route connecting Boston, New York and Washington, D.C.
Methode Massachusetts LLC, a wholly owned subsidiary of Methode Electronics Inc. (Chicago, IL) has completed the sale of substantially all the assets of the optoelectronics business segment of Spire Corp. (Bedford, MA). The transaction is valued at $12,950,000. Methode will assimilate Spire's optoelectronics expertise into its component device manufacturing. With the transfer of its optoelectronics business to Methode, Spire plans to pursue its solar and biomedical businesses, according to the company.
Qwest Communications International Inc. (Denver, CO) formally joined the New York Stock Exchange on Monday. Qwest moved from the Nasdaq exchange, where it was listed since its initial public offering in 1997. The company is trading under the symbol Q, becoming the 24th company with a single letter as its ticker symbol and the first company in the exchange history to use the letter Q.