Cable & Wireless today announced plans to get its US business back on track by building a high capacity Internet network across the country.
C&W said it will spend $670 million on dark fibre and facilities connecting 60 metropolitan areas. The carrier will use the 9.6 Gbps IP network to provide facilities based Internet, data and voice services across a single network.
The investment is a bold attempt to boost C&W's recently acquired US Internet business, which it claims has been "impeded" by the failure of previous owner, MCI, to fulfil all contractual commitments of the sale.
C&W entered the US Internet market last September with the $1.75 billion acquisition of MCI's Internet business, which the US carrier was forced to sell ahead of its merger with Worldcom.
But C&W announced earlier this month it is suing MCI for alleged loss of customers, revenue and marketing opportunities since the sale. (see Newswire 1 April, 1999)
Level 3 Communications will provide 15,000 miles of dark fibre for C&W's network. The company will also purchase Juniper Networks M40 routers and Fore Systems Forerunner ASX 4000 ATM switches for the network.
"Cable & Wireless USA is creating the most advanced Internet network," said Randy Catoe, vice president of Internet operations at C&W USA.
C&W plans to connect the US network to its other networks around the world, including its Internet backbone in Europe and its infrastructure in Asia/Pacific.
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