Additional Capacity in Eight Core Markets Secured in Strategic Agreement
San Francisco, CA -- 1/20/2010
FiberTower Corporation (NASDAQ:FTWR, news, filings), a wireless backhaul services provider, announced today that it has expanded its fiber footprint with a purchase of approximately 4,000 miles of dark fiber from FiberLight, a leading optical transport company. The transaction increases FiberTower’s current fiber footprint in eight of its core markets. In addition to the initial purchase, FiberTower secured contractual rights to increase its capacity by up to an additional 8,000 fiber miles over the next 6 years.
Over the past several quarters, FiberTower has received growing interest in its Ethernet and high capacity transport solutions that require circuits of at least 50 Megabits per second. Bandwidth forecasting at FiberTower’s sites have also indicated a need for a higher proportion of fiber-fed sites. In response to these trends, and in order to maintain control over costs and network quality, FiberTower has assumed a greater ownership of Company managed fiber solutions. The transaction with FiberLight provides FiberTower with scalable capacity on eight diverse routes across the southern United States, including key markets such as Washington D.C., Atlanta and Dallas.
“Customer interest in our traditional and high capacity backhaul services requires that we ensure sufficient access to additional fiber as we grow our network,” said Kurt Van Wagenen, President and CEO of FiberTower. “Expanding our relationship with FiberLight through this transaction enables FiberTower to immediately expand capacity and to continue scaling the network on a cost-effective basis.”
FiberLight’s network, spanning over 500,000 fiber miles in length, is comprised of 21 metro networks located in the mid-Atlantic, southeast and southwestern regions of the United States. “We are delighted to have completed this significant transaction as it enhances FiberTower’s position as the leading alternative backhaul provider in the U.S.,” said Michael P. Miller, CEO and Founder of FiberLight. “FiberTower has been and continues to be an important customer of ours. We look forward to continuing our long-term relationship with the company during this evolving and exciting period in the wireless industry’s growth.”
FiberTower is a backhaul and access services provider focused primarily on the wireless carrier market. With its extensive spectrum footprint in 24 GHz and 39 GHz bands, carrier-class microwave and fiber networks in 13 major markets, master service agreements with nine U.S. wireless carriers, and partnerships with the largest tower operators in the U.S., FiberTower is considered to be the leading alternative carrier for wireless backhaul. FiberTower also provides backhaul and access service to government and enterprise markets. For more information, please visit our website at www.fibertower.com.
FiberLight provides Ethernet, Wavelengths, IP, SONET, and Dark Fiber optical transport network solutions to telecom carriers, government, enterprise, content providers and web centric businesses. FiberLight wholly owns its 500,000 fiber mile network in key growth areas and offers robust metro networks in 21 metros within Georgia, Florida, Washington, D.C., Texas, Virginia and Maryland, as well as Wide Area Networking options at layer 1, 2 and 3 to major commercial hubs throughout the country. FiberLight fully supports applications requiring maximum availability, low latency and ultimate security.