Lambdanet to restructure Spanish networkÂ

19 February 2003 -- LambdaNet Communications, Hannover, is to cut back its Spanish network and staff in line with the retrenched demand for infrastructure in the country.

Feb 19th, 2003

19 February 2003 -- LambdaNet Communications, Hannover, today announced that it is to cut back its Spanish network and staff in line with the retrenched demand for infrastructure in the country.

The company says its decision is in line with LambdaNet's policy to keep operational costs to a minimum and to only build and maintain networks in regions where customer demand is high.

LambdaNet has advised that this decision does not affect the LambdaNet networks in Germany, France or any other European markets. All subsidiaries and their respective networks are managed as independent businesses.

The Spanish network was extended to meet the needs of a single customer that required connectivity beyond the core Spanish backbone. This customer no longer requires this breadth of access and, in response, LambdaNet has made the decision to revert back to the original core network footprint, providing connectivity between the major cities and business districts in Spain.

Bernie Smedley, CEO LNG Holdings S.A. explained: "The decision to reduce the Spanish footprint is based on demand. Much of the 8,000km were built to support the needs of a specific customer. It does not make sense to keep these connections live with little or no traffic running over them."

"We have always been focused on customer satisfaction and running a profitable business and have always looked hard at ways to cut costs to achieve these objectives. Therefore, running network routes that carry minimal traffic would be economic suicide."

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