Telenor buys network capacity worth 40 MUSD from Telia
Telenor Global Services buy network capacity from Telia International Carrier (IC) in USA and Denmark. The contract, worth about 40 MUSD, runs over a ten-year period.
The deal includes a major undertaking where Telenor will outsource the service of the purchased network capacity to Telia IC. Telia IC will also be responsible for building up the equipment required on site in both Europe and U.S. According to Telia IC, the deal offers opportunities for further co-operation.
Like other major carriers, Telia IC and Telenor Global Services are both part owners of TAT 14, a new transatlantic submarine cable of extremely high capacity. By December, this cable will reach five places/countries in Europe, one of them being Denmark where Telia owns the submarine cable station.
To reach the European customer base, the carriers will need access to the section of the network extending from the submarine cable station on the coast to the point on the mainland where the capacity is connected to the customer, the so-called back-haul, and the present deal with Telia IC will award Telenor that access.
About Telia International Carrier
Telia International Carrier, a wholly owned subsidiary of the Telia Group, offers IP, capacity, telephony and infrastructure services for the rapidly expanding wholesale segment of the international carrier market. The company is currently the leading European carrier of transatlantic IP traffic.
Telia's multi-fiber Viking network offers high-capacity transmission and connectivity around the world. The network represents a substantial investment in which Telia International Carrier plans to cover the market in Scandinavia, Europe and the United States in 2001. The European infrastructure is designed as a multi-duct network connecting all major cities for IP and telecommunications services. The Viking Ring currently comprises 7,000 km of fiber connecting 29 cities. At the end of 2000, the network will consist of 30,000 km of fiber throughout Europe and the U.S. that will connect 40 cities.
Lars Rydin, MD Telia International Carrier, phone: +46 8 605 45 50
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