DENVER, January 21, 1999 ? Qwest Communications International Inc. today announced it has received an additional $60 million commitment for high-speed, broadband capacity from Verio Inc., a leading provider of comprehensive business Internet services. The agreement builds upon the companies? original 15-year, $100 million contract and extends the term of Verio?s minimum commitment from 7 to 10 years.
The extended contract and higher volume of service commitment provides Verio with an improved price. In addition, the contract provides Verio with the flexibility to deploy circuits from DS-3 (45 megabits per second) to multiple OC-48 (2.4 gigabits per second) as customer needs expand. Verio?s rising customer base ? increased dramatically by the 105,000 subscribers the company added with the recent close of its Hiway Technologies Inc. acquisition ? now exceeds 260,000. This rapid growth, and the increasing applications driving the needs of business customers for high-speed transmission, played key roles in Verio's decision to increase its commitment.
"We are pleased to expand our business relationship with Verio," said Gregory M. Casey, senior vice president of wholesale markets for Qwest. "Verio is one of the fastest growing providers of enhanced Internet services, and because of the advanced nature of our network, Qwest can provide them with the convenience and flexibility of bandwidth on demand."
As Verio?s business and customer base grow, the company is converting a significant portion of its network to Qwest?s high-speed fiber optic network. Verio now has exceeded its year-end target to activate 10,000 miles on the Qwest fiber network, and has in excess of 12,000 miles of capacity in service. Currently, approximately 50 percent of Verio?s traffic is carried on the Qwest network, marking significant progress in the integration of Verio?s nationwide network operations. Verio expects to continue expanding its network capacity as Qwest nears completion of its nationwide network.
"The performance and cost competitiveness of the Qwest fiber is compelling, especially at OC-3 (155 megabits per second) and higher speeds," said Chris DeMarche, chief technical officer for Verio. "Qwest has been a valuable partner to us in providing capacity to keep up with the rapid growth of our IP network, which is ranked in the
top 10 in the country in speed and size."
About Verio Inc.
Verio Inc. (NASDAQ:VRIO) is a leading provider of comprehensive business Internet services - including broadband connectivity, virtual private networks, Web-hosting solutions and e-commerce - with an emphasis on serving the small and mid-sized businessh 1996, Verio has rapidly established a global presence through the acquisition, integration and growth of independent Internet providers with a business customer focus. Verio supports its operations with highly reliable and scalable national infrastructure and systems including a facilities-based Tier One national network. Verio delivers locally-based sales and engineering support in 41 of the top 50 U.S. markets under the Verio brand name and provides Web-hosting services to customers in more than 170 countries. For more information on Verio, visit the company's Web site at www.verio.com.
Verio Media Contact
Clarus Public Relations
Qwest Communications International Inc. (Nasdaq: QWST) is a leader in reliable and secure broadband Internet-based data, voice and image communications for businesses and consumers. Headquartered in Denver, Qwest has more than 8,000 employees and 80 sales offices in North America, Europe and Mexico. The Qwest Macro Capacity (SM) Fiber Network, designed with the newest optical networking, will span more than 18,500 route miles in the United States when it is completed in mid-1999. In addition, Qwest and KPN, the Dutch telecommunications company, have a venture to build and operate a high-capacity European fiber optic, Internet Protocol-based network that has 2,100 miles today and will span 9,100 miles when it is completed in 2002. Qwest also has nearly completed a 1,500-mile network in Mexico.
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 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 complete the network on schedule and on budget, 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 satisfactory negotiation and execution of definitive documentation.
Except for the historical information contained herein, certain matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties, including but not limited to fluctuations in operating results, additional capital requirements, competition, integration of acquisitions and implementation of network infrastructure. Readers are also encouraged to refer to Verio's reports from time to time filed with the Securities and Exchange Commission, including the Company's Current Report on Form 8-K filed on July 7, 1998, and the Company's Current Report on Form 8-K filed on October 28, 1998, for a further discussion of Verio's business and risk factors that may affect operating and financial results and the financial information provided herein with respect to recent acquisitions.
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