Pathnet Inc. (Washington, DC) selected Lucent Technologies (Murray Hill, NJ) to supply fiber-optic

May 1, 1999

Pathnet Inc. (Washington, DC) selected Lucent Technologies (Murray Hill, NJ) to supply fiber-optic cable for its nationwide voice and data network. The agreement is valued at $440 million and could grow to $2.1 billion over the life of the seven-year contract. Under the agreement, Pathnet will use Lucent`s TrueWave RS (reduced slope) fiber, a new fiber for long-distance networks developed by Bell Labs. Lucent agreed to provide equipment financing of approximately $400 million for the first phase of the network construction, and may provide or arrange financing for future phases in amounts up to $400 million, not to exceed $1.8 billion. At the end of 1998, Pathnet had 2000 route-mi of completed network, an additional 5000 route-mi under construction, and 10,000 route-mi under contract.

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