Bell Atlantic Leases Dark Fiber from Metromedia Fiber Network for Next-Generation Long Distance Network

Strategic Insights -

Metromedia Fiber Network, Inc. announced the signing of its first 'dark fiber' lease agreement with Bell Atlantic Global Networks, a unit of Bell Atlantic's Data Solutions Group. The lease agreement allows Bell Atlantic to utilize dark fiber strands from Metromedia Fiber Network to build out its new long distance network between New York City and White Plains. This agreement highlights the benefits of dark fiber leasing for incumbent local exchange carriers (ILECs) in expanding services within their traditional franchised territories. By leveraging Metromedia Fiber Network's infrastructure, Bell Atlantic aims to meet the future long distance demands of its business customers in the region.

Key Takeaways:

  • Metromedia Fiber Network signed a "dark fiber" lease agreement with Bell Atlantic Global Networks to provide capacity for its new long distance network.
  • The agreement allows Bell Atlantic to lease dark fiber strands from Metromedia Fiber Network to build out its network between New York City and White Plains.
  • The term "dark fiber" refers to fiber optic cable without any electronic or optronic equipment necessary for transmission.
  • By leasing fiber, rather than installing new lines, Bell Atlantic gains the capability to deploy a high-speed, high-capacity data and voice communications network quickly and cost-effectively.
  • Bell Atlantic plans to install advanced electronics on the leased lines to deliver voice and data over a single network, resulting in significant cost savings for customers.
  • The company will deploy leading-edge switching technologies, such as Asynchronous Transfer Mode (ATM) and Dense Wave Division Multiplexing (DWDM), to handle high-volume data traffic in the New York metro region.
  • Bell Atlantic also plans to offer Internet Protocol (IP) routing capability to enable businesses to communicate online.
  • The lease agreement is expected to meet the heavy demands of customers in the metro region as soon as Bell Atlantic is allowed to enter the long distance market, anticipated in the second quarter of 1999.
  • Metromedia Fiber Network appreciated Bell Atlantic's need for rapid capacity availability and the company's responsiveness and flexibility in reaching this deal.
  • The agreement demonstrates the value and breadth of Metromedia Fiber Network's infrastructure in enabling all types of telecommunications carriers to obtain quick and cost-effective access to major Tier One metropolitan areas.

Statistics:

  • 42 million: the number of telephone access lines owned by Bell Atlantic companies worldwide.
  • 8 million: the number of wireless customers served by Bell Atlantic companies worldwide.
  • 23 countries: the number of countries where Bell Atlantic companies have operations and investments.
  • 1999: the year in which Bell Atlantic is expected to receive permission to provide long distance service in New York.

Sources:

  • Business Wire - "Bell Atlantic to Harness Additional Capacity to Power Its Next-Generation Long Distance Network" (January 12, 1999)
  • Metromedia Fiber Network - "About Metromedia Fiber Network" (no date mentioned)
  • Bell Atlantic - "About Bell Atlantic" (no date mentioned)