Telewest and Worldwide Fiber to Build Major Fiber Optic Network in England - Company Business and Marketing

Cambridge Telcom Report, Jan 31, 2000

Telewest Communications and Worldwide Fiber Inc. Monday announced they will build a high-capacity fibre optic network linking Liverpool and London via two separate routes.

Telewest will build the 1,150-kilometer network connecting Worldwide Fiber's trans-Atlantic cable station in Southport, near Liverpool, with Worldwide Fiber's point of presence in the Docklands in London. The network will run via Manchester, Sheffield, Birmingham, Bristol, Nottingham and Cambridge.

The value of the initial phase of the contract is 40 million pounds sterling (pounds) (US$66 million).

The multi-duct network will be an expansion of Telewest's existing 3,500-kilometre fibre optic national network that links all major cities in the United Kingdom and interconnects Telewest's regional broadband networks, carrying digital TV and Internet services as well as national and international telephony traffic.

"This is a significant network transaction for Telewest that will enhance our position in the market for carrier network services," said Tony Illsley, Chief Executive Officer of Telewest. "The immediate benefits of increased capacity on our national network are coupled with the opportunity to develop a long-term relationship with a major international operator."

"We are developing one of the largest and most advanced fibre optic networks in England," said Greg Maffei, Chief Executive Officer of Worldwide Fiber. "This infrastructure will be at the heart of our network that connects our trans-Atlantic cable to Europe via our gateway in London. It represents a critical leg of our growing international network."

Telewest Communications is one of Britain's leading integrated broadband communications companies. Telewest's metropolitan broadband cable networks now reach 4.4 million homes, with more than 1.5 million UK households choosing Telewest for their digital and analogue multi-channel television, telephone and Internet services. In the business sector Telewest's voice and data telecommunications links are used by over 54,000 companies and other public and private sector organisations.

Telewest's revenues for the nine months ended 30 September, 1999, were 576 million pounds, up 14.7 per cent from 1998. In the same period earnings before interest, tax, depreciation and amortisation (EBITDA) grew 33.3 per cent to 165 million pounds. Telewest's ordinary share capital is listed on the London Stock Exchange and on the US Nasdaq National Market System.

Worldwide Fiber designs, builds and operates high-speed fiber optic networks for communications carriers, Internet service providers and corporations with high-bandwidth network needs. Worldwide Fiber is currently completing a 38,600-kilometer (24,000-mile) fiber-optic network in North America and Europe, and constructing a trans-Atlantic network connecting Boston and Halifax with Liverpool and Dublin. Worldwide Fiber was established in May 1998, and includes the telecommunications division of Ledcor Industries Limited, which has been constructing communications networks since 1988. Additional information about Worldwide Fiber is available at www.worldwidefiber.com.