Genuity Plans $9 Billion European Push
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Network services provider Genuity (NASDAQ:GENU) will spend between $7 billion and $9 billion over the next 18 months to deploy its Web hosting services in Europe.
The Burlington, Mass., company will begin its European build-out with new Internet data centers in The Netherlands, Germany and the United Kingdom in 2001, followed by a facility in France in 2002.
The centers will be connected directly to Genuity's fiber-optic network, which has hubs across Europe. The plants will be staffed by Genuity technicians and customer service representatives rather than outsourced workers.
"We are expanding our global business in response to customers throughout the world who are demanding a complete, round-trip Internet infrastructure solution," said Paul R. Gudonis, Genuity's chairman and CEO.
Like its offerings in the United States, Genuity will provide medium and large businesses with integrated managed hosting, application support and security services, and access to a high-speed network -- and do it in days, not months.
The package will be sold under the Black Rocket name. Black Rocket was launched in September and was supported with a $20 million international marketing campaign. The service costs $25,000 and up per month and includes 24-hour monitoring and maintenance.
Genuity started out as BBN, later BBN Planet, and was involved in Arpanet, the Internet's predecessor. It was one of the first network infrastructure companies to build a Tier 1 network. The company has annualized sales of $1 billion.
News of the company's expansion came after markets closed. Shares of GENU were up .062, or nearly 2 percent, to 4.125 on Tuesday. Since its IPO in June, the issue has been as high as 11.25 and as low as 3.75. Despite its lagging stock price, the company still maintains a market value of $4 billion.
Colin C. Haley writes for Boston.internet.com, part of the internet.com news network.