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NYNEX and MFS Telecom Sign Historic Team Agreement to Provide Seamless Private Data Service to Citicorp

Strategic Insights

— 2 min read

The telecommunications industry witnessed a significant development on November 1, 1994, as NYNEX and MFS Telecom Inc. signed a seven-year, multi-million dollar contract with Citicorp to provide a seamless, high-speed private data service. This historic teaming arrangement marked the first time a Regional Bell Operating Company and a Competitive Access Provider worked together to provide service to a customer. The fiber optic network, capable of supporting data transfer speeds of up to 2.4 gigabits per second, will link seven of Citicorp's locations in Manhattan, two in New Jersey, and one on Long Island.

Key Takeaways:

  • The agreement between NYNEX and MFS Telecom is a significant development for the telecommunications industry, marking the first time a Regional Bell Operating Company and a Competitive Access Provider have worked together to provide service to a customer.
  • The seven-year, multi-million dollar contract will provide a seamless, high-speed private data service to Citicorp's locations in Manhattan, New Jersey, and Long Island.
  • The fiber optic network, capable of supporting data transfer speeds of up to 2.4 gigabits per second, is expected to handle twice as much traffic as previous technology.
  • Citicorp will initially use the Synchronous Optical Network (OC48 SONET) to send trading and marketing information, and other data, with the company eventually transmitting video images.
  • The SONET network is a bi-directional line-switched OC48 system, allowing for up to 32,256 simultaneous phone conversations or data transmissions, and automatic rerouting in the event of a disaster.
  • MFS Telecom is a leading Competitive Access Provider and an operating company of MFS Communications Co. Inc. (MFS), providing communication services for business in 22 metropolitan areas and developing networks in additional areas, including several financial centers in Europe.
  • NYNEX is a leader in helping people communicate in the northeastern United States and selected markets around the world, including the United Kingdom, Thailand, Gibraltar, Greece, Indonesia, and the Czech Republic.

Statistics:

  • The seven-year contract is valued at multi-million dollars.
  • The fiber optic network is capable of supporting data transfer speeds of up to 2.4 gigabits per second.
  • The SONET network can handle up to 32,256 simultaneous phone conversations or data transmissions.
  • The network will cover seven locations in Manhattan, two in New Jersey, and one on Long Island.
  • MFS Telecom provides communication services for business in 22 metropolitan areas and developing networks in additional areas.
  • NYNEX serves customers in the northeastern United States and selected markets around the world.

Sources:

  • BUSINESS WIRE, November 1, 1994
  • MFS Communications Co. Inc. (MFS)

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