CLEC thinks big: WinStar expands fiber capacity

WinStar Communications took a major step in preparing for its future last week when it signed a multimillion dollar agreement with Metromedia Fiber Network to lease dark fiber across the U.S. and overseas.

For $300 million, which will be paid over 20 years, WinStar gets dark fiber in 38 U.S. markets and three international markets, greatly increasing the company's metro network ability by adding metro ring capacity and fiber-lit buildings to its inventory.

Metromedia will provide WinStar with fiber capacity in U.S. cities, including Atlanta, Boston, Dallas and Los Angeles and in the European cities of Amsterdam; Cologne, Germany; and London - where WinStar already provides services or holds licenses to do so. The agreement also includes fiber on Metromedia's German ring, which links major cities within the country.

"We go into new markets, where our customers want us to go, and provide our fiber at fixed cost. We build the infrastructure so they can expand faster," said Nick Tanzi, senior vice president of sales and marketing at Metromedia. The long-term deal validates Metromedia's approach of building networks, then leasing dark fiber to customers, he said.

"One key thing with the agreement is it gives Metromedia the cash to expand their networks while speeding WinStar's access into the market," said Mat Steinberg, director of optical networking at RHK.

Metromedia also will deploy fiber into buildings designated by WinStar, including WinStar hub sites and central offices. With this agreement, WinStar will have dark fiber capacity in 50 of the 60 U.S. markets it plans to serve.