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Metromedia, StorageNetworks Sign $96 Million Dark Fiber Deal

Metromedia Fiber Network, Inc. Wednesday inked a 20-year, $96 million agreement with StorageNetworks to lease dark fiber to the storage service provider.

StorageNetworks will have access to Metromedia's (MFNX) global infrastructure and will also receive high-speed, high-bandwidth dark fiber infrastructure in major metropolitan areas of the United States

StorageNetworks will use the capacity to connect its storage points of presence to its global data storage network. StorageNetworks will use the lease agreement to enhance the company's continuity and disaster recovery services, including restoration and data sharing.

The deal represents Metromedia's first agreement with a data storage company, and Metromedia calls the deal a demonstration of the need for dark fiber in the enterprise network market.

StorageNetwork explains that as businesses require storage of larger amounts of data as well as instant access to that information, the company expects more enterprise users to move from center-based Storage Area Networks (SANs) to outsourced data management. The company predicts that the market could reach $10 billion this year and will continue to grow at 32 percent annually.

Metromedia has raked in some major deals this month through its fiber network. Since Oct. 5, Metromedia signed a $550 million dark fiber deal with Bell Atlantic sweetened by a $1.9 billion investment and signed a $300 million dark fiber agreement with WinStar.