Pan-European carrier KPNQwest has signed a major deal with Fibernet to extend its network coverage in the UK to businesses outside London.
Under a 50m euros (£30.5m) contract, Fibernet, which operates the nationwide TANet network, will supply network capacity to KPNQwest, enabling it to offer services such as hosting and collocation across the UK.
According to KPNQwest, there is a significant demand from UK customers outside London that want to access its European fibre-optic network. The company has three points in London where its international cables arrive in the UK. To reach customers outside London it needs to lease capacity from other operators.
KPNQwest already uses a number of suppliers in the UK, but said Fibernet, as an extra choice of supplier, will enable it to sell its services at a much lower cost than currently available. Fibernet operates a national fibre-optic network with more than 65 UK points of presence.
Keith Westcott, vice president of KPNQwest in the UK, said: "Fibernet gives us additional reach in the UK."
The deal also enables KPNQwest to offer UK-based customers outside London the full range of its pan-European fibre-optic, hosting, collocation and value-added internet services at "higher quality and lower cost than currently available", said Westcott.
Under the 20-year contract, Fibernet will supply KPNQwest with local, city-ring and long haul network capacity.
The contract follows last week's announcement that Fibernet will lease up to 6800km of dark fibre in mainland Europe from KPNQwest on the Dutch company's own mainland Europe network. Fibernet will pay around 100m euros (£61m) for the network.
Fibernet plans to build seven fibre-optic rings, connecting 50 cities in 14 European countries, focusing initially on developing a network in Germany. It will then roll out networks in France, Switzerland and Italy.
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