Qwest, KPN Continue With Fiber Optic Deal

KPNQwest, a joint venture between Qwest Communications International Inc. (New York) and Netherlands-based KPN, said the companies have finished their proposed deal to build a fiber optic network.

Qwest's venture and KPN Telecom will develop the EuroRings fiberoptic network. The venture now provides Internet protocol-based, fiber-optic broadband network services (see http://news.fiberopticsonline.com/news-analysis/19981125-5041.html">KPN and Qwest Form $700 Million European Fiber Network Team).

Qwest has contributed the resources of European ISP EUnet, funding, and transatlantic capacity. KPN's contribution to the venture is 2,100 miles of network, transatlantic capacity, and money.

The network will provide broadband and Internet-based communication services to customers. The network will cover 9,100 miles and connect more than 40 major cities by 2001. The companies will issue $800 million of debt to complete the project.