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Carrier1, 360networks Sign $175 Million Fiber Capacity Deal

[May 31] Swiss-based fiber network operator Carrier1 International S.A. announced Wednesday a $175 million deal for the cross-purchasing of broadband capacity with fellow fiber operator 360networks.

Under the terms of the agreement, Carrier1 buys dark fiber in the U.K. together with lit broadband capacity on transatlantic and North American networks, while providing 360networks with 1,900 miles of dark fiber from its German network.

As part of the deal, 360networks also gets dark fiber on Carrier1's city rings in Paris and Amsterdam.

Greg Maffei, president and chief executive officer of 360networks, said the latest agreement with Carrier1 enables his company to begin selling broadband capacity immediately in key areas of Europe in advance of lighting its own pan-European network.

Stig Johansson, chief executive officer of Carrier1 International, was clearly delighted to be extending Carrier1's reach in the U.K. and North America.

"Through this deal, we will be able to expand the reach of our services to the major cities of the English-speaking world," said Johansson.

Carrier1's pan-European fiber network connects 11 countries and is now fully operational in all of them. It is also building 20 intra-city fiber networks, and in a joint venture with DigiPlex, 20 full-service data center facilities.

360networks, one of the biggest fiber operations in the world, expects to have a network extending across 56,000 miles by the end of 2001. It will link 90 major cities, joining North and South America with Europe.