MFN changes European strategy

Fiber Optics Weekly Update, Feb 7, 2003

Metromedia Fiber Network Inc. (MFN) announced that its European strategy will focus on its core markets of UK and Germany/Austria. In keeping with this strategy, the company's European holding company, MFN BV, has sold its operations in France and the Netherlands to management buyout teams, and its metropolitan fiber network in four Dutch cities to Global Voice Network Limited. These sales will turn over operations of the data centers to the management teams, along with the company's collocation and managed services customers.

The acquirers will continue to run these data centers and metropolitan area networks without any interruption to customers. MFN Inc. and MFN BV will maintain ownership in the company's global IP network and continue to provide IP services to the management buy-out teams for resale to their customers, as well as to the company's global customers with a presence in France and the Netherlands. MFN will continue to operate its data centers in London, Frankfurt and Vienna, and its metropolitan area networks in London and Germany. These cities will form the foundation of the company's European presence.

In a separate release, MFN said it sold a single fiber conduit in portions of MFN's completed network in the Phoenix market to AGL Networks, LLC, a wholly owned subsidiary of AGL Resources Inc. This sale underscores the value of MFN's network topography, which runs through the major business district in Phoenix and extends to the outlying Tempe area. MEN remains the only licensed dark fiber provider in the Phoenix area, providing the Phoenix business market with an alternative to traditional telecommunications services. The remaining conduit will stay under the ownership and operation of MEN. In keeping with the company's unique business model, MFN will continue to lease dark fiber to enterprise and carrier customers in the Phoenix area. The company also has plans to roll out additional services in this market in the near future.