Touch America, Sierra Pacific to Build 750-Mile Fiber Network Between Salt Lake City and Sacramento

Sierra Pacific Communications (SPC; Reno, NV), a subsidiary of Sierra Pacific Resources, and Touch America, the telecommunications subsidiary of The Montana Power Co. (Butte, MT), have formed a partnership called Sierra Touch America LLC to construct a new 750-mile fiber-optic network between Sacramento and Salt Lake City.

Under terms of the agreement, Sierra Touch America also will assume part interest in the metropolitan fiber networks SPC has in Reno and Las Vegas. Customers served by the local networks will have the opportunity to access and receive information directly from Touch America's nationwide broadband fiber-optic network.

Construction of the high-fiber count, multiple-duct Salt Lake City-Sacramento route is expected to commence immediately and to be completed by the summer of 2001. The estimated cost of the project is $100 million. The Salt Lake City-Sacramento market demand is increasing due to the growth of business-to-business transactions via the Internet, explained Steve Oldham, vice president of corporate development and strategic planning for Sierra Pacific Resources.

SPC has completed installation of a fiber-optic ring around Reno and expects to complete a similar "metro ring" around Las Vegas by the fall of 2000. Touch America has a 14,000-mile fiber-optic network that will reach 26,000 miles by year-end 2001.

SPC's 30-mile, fiber-optic ring around Reno has four "central offices" or hubs operated by Nevada Bell that provide interconnections to the local exchange carrier and other long-haul carriers. The 70-mile ring around Las Vegas will be connected to seven central offices operated by Sprint.

Edited by Kristin Keiser