Focal focuses future on fiber

Chicago-based competitive local exchange carrier Focal Communications announced plans last week to broaden its business strategy to include fiber deployment and geographic growth.

"This was the next step in the evolution of the company," said Debra O'Shea, director of investor relations for Focal. "We used to do just dial tone, but now [the company] is at a point economically to put in our own fiber. It makes sense for us to do it."

More specifically, Focal has four key initiatives: the purchase of dark fiber transport capacity, geographic expansion of its network, development of digital subscriber line service and deployment of a nationwide asynchronous transfer mode network to connect its cities.

It has signed an agreement with Level 3 Communications to cover 8300 fiber miles in seven markets and is negotiating with another carrier to acquire 10,800 total fiber miles in 16 markets.

Because Focal is in a quiet period, officials would not comment in detail regarding the strengthened business plan.

But Terry Barnich, president of New Paradigm Resources Group, said, "This was natural considering how the company started accommodating Internet service providers. Watch their [initial public offering]. They will go public."

Focal, which offers data and voice services to large corporations, ISPs and value-added resellers, started service in Chicago and now serves 12 major markets. The company plans to deploy service in 20 markets nationwide by the end of 2000.

"The company believes it will have an advantage over other data and voice CLECs offering these services due to its relationships with some of the largest corporate and [ISP] customers in the nation," said O'Shea.

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