- Revolutionizes Internet access for European business
- DSL market in Europe estimated at $6-7.8 billion
- KPNQwest: first to start implementation of high-speed pan-European DSL service
- Roll-out under way in Germany
- Offering leverages KPNQwest's high-speed fiber-optic Internet backbone in Europe
- Massively improves high-speed access to Internet content and applications
Denver, December 14, 1999 - Qwest Communications International Inc. (Nasdaq: QWST), the broadband Internet communications company, announced today that KPNQwest (Nasdaq: KQIP), its joint venture with KPN, intends to roll-out a local broadband Digital Subscriber Line (DSL) service, which will enhance the delivery of high-speed broadband services to customers. This new initiative will also leverage the company's European fiber-optic broadband network and CyberCenters in delivering end-to-end high-speed broadband connectivity to businesses across Europe.
The announcement of KPNQwest's DSL strategy represents the company's first major extension of its business plan for delivering next generation data communications services. It also heralds the advent of high-speed Internet connectivity not only for KPNQwest's existing corporate customer base, but also for millions of small and medium-sized enterprises across Europe.
European customers can expect new broadband access to the Internet at speeds of up to 100 times faster than traditional services available today. And because DSL services are always on, a whole range of Internet Protocol (IP) based services will be enhanced, from instantaneous email to Virtual private Networks, e-commerce and web hosting.
The DSL rollout will be initiated in Germany, where the 'local loop' has effectively been unbundled and the regulatory framework is in place to allow companies like KPNQwest to co-locate their DSL equipment in Deutsche Telecom locations. So far, KPNQwest has secured licenses* in four German cities: Dusseldorf, Frankfurt, Koln and Munich. It has also secured* the right to co-locate its DSL equipment in 23 Central Offices in Düsseldorf, where the service will be introduced by mid-2000. These Central Offices connect more than 90% of businesses in Dusseldorf.
KPNQwest's DSL plan addresses a market opportunity of $6-7.8 billion and will reach over 25 cities in nine European countries**, involving co-location in over 1,400 Central Offices. The DSL initiative will allow the company to further leverage its ISP and fiber assets: its pan-European long-hall backbone network, its 12 existing CyberCenters and 6 planned mega-CyberCenters, its 14 ISPs and 240 tier-one peering arrangements across Europe and the USA. KPNQwest's planned DSL service is also enhanced by its connection to Qwest's North American network and KPN's network in the Benelux market.
In introducing and rolling out DSL, KPNQwest has benefited from the experience of KPN and Qwest, who are the industry leaders in DSL implementation in Europe and USA.
KPNQwest President and CEO, Jack McMaster, said: "This is the first of KPNQwest's broadband access initiatives. Our DSL service can deliver both the bandwidth and value added services that make broadband, always-on connectivity a reality for small companies and branch office locations for multi-national companies. I truly believe that this is a major step forward in delivering the Internet economy to European business, that massively stimulates the demand for the fiber optic network and CyberCenter hosting assets that we are constructing."
*Transfer from KPN
** KPNQwest Countries: Germany, Austria, Sweden, Finland, Norway, Denmark, Italy, France, UK
KPN Countries: Netherlands, Belgium, Luxembourg
KPNQwest (NASDAQ & ASE: KQIP) is a leading facilities-based, pan-European provider of data-centric Internet protocol-based services to business customers. It is deploying a technologically advanced fiber-optic network connecting 39 cities throughout Europe, enabling the company to provide a broad range of high-speed, high-quality data-centric Internet protocol-based services and other advanced telecommunications services. The company is the one of the largest business ISPs in Europe with operations in 14 countries. KPNQwest has 12 CyberCenters and plans a further 6 mega-CyberCenters, of which two are extensions of existing CyberCenters, on its high-capacity fiber-optic network to provide web-hosting, application sharing and telehousing services. Website: www.kpnqwest.com
Qwest Communications International Inc. (Nasdaq: QWST) is a leader in reliable, scalable and secure broadband Internet-based data, voice and image communications for businesses and consumers. The Qwest Macro Capacity® Fiber Network, designed with the newest optical networking equipment for speed and efficiency, spans more than 24,500 miles in North America. In addition, KPNQwest (Nasdaq: KQIP), Qwest's European joint venture with KPN, the Dutch telecommunications company, is building and will operate a high-capacity European fiber optic, Internet-based network that will span 9,150 miles when it is completed in 2001.
This release may contain forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by Qwest and KPNQwest with the SEC, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including potential fluctuations in quarterly results, dependence on new product development, rapid technological and market change, failure to maintain rights of way, financial risk management and future growth subject to risks, Qwest's ability to achieve Year 2000 compliance, adverse changes in the regulatory or legislative environment, and failure to complete the merger with U S WEST and achieve projected synergies and financial results timely or at all. This release may include analysts' estimates and other information prepared by third parties, for which neither Qwest nor KPNQwest assumes any responsibility. Qwest and KPNQwest undertake no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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