RealTime IT News

Metromedia Expands in Europe

Metromedia Fiber Network Inc. Monday unveiled ambitious plans to expand its fiber optic capacity in Europe.

Metromedia (MFNX) will extend its presence in Germany and build new high-capacity networks in France, Belgium, Austria, Switzerland and Italy. Eleven metropolitan markets will be included in the expansion, including Paris, Brussels, Munich, Berlin, Zurich, Geneva, and Milan.

The company is targeting the "last mile" connectivity market for telcos and businesses and expects to harness in a chunk of the estimated $300 billion industry. Metromedia chose major corporate, financial and government centers in western Europe for this wave of expansion efforts, which will see its total planned European fiber infrastructure hitting 625,000 kilometers.

"The enormous growth of data transmissions, mobile phones and other forms of telecom traffic in Europe is creating a substantial bottleneck in the local metropolitan markets," said Vincent Galluccio, managing director of Metromedia Fiber Network International. "Our intra-city networks are designed to eliminate those bottlenecks and unlock the latent demand for ever advancing communications applications."

The Metromedia networks claims an advantage over regular fiber optic rings by providing routed, high-bandwidth connectivity directly into buildings without relying on legacy networks, according to Galluccio.

Metromedia Fiber Network offers its clients unmetered bandwidth at a fixed cost. The company recently bought fellow network company AboveNet Communications in June, and was the first to build a tier one network in Germany earlier this year. The company expanded its network to London and Amsterdam in June as well.

Last month, Metromedia made a $300 million deal with Winstar which included significant capacity in its dark fiber network in London, Amsterdam and Cologne as the metropolitan centers for Winstar's European network. WinStar (WCII) currently holds licensed to provide services in these cities. Metromedia also offered dark fiber on its German ring as part of the agreement.