Fibernet suspends German/French networks
PrintKPNQwest fallout
Posted in Music and Media, 27th June 2002 18:34 GMT
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Fibernet - the high-speed data communications company - has suspended its German and French national networks following the collapse of KPNQwest.
KPNQwest's fibre network forms more than 80 per cent of Fibernet's network infrastructure in Europe, but with the collapse of the pan-European company, Fibernet has had to rethink its strategy.
In a statement today the company said: "Having examined our potential to replace KPNQwest assets in these territories, Fibernet does not believe that the current economic conditions justify such additional capital expenditure at this time."
As a result, Fibernet has decided to write down the value of its assets by around £75 million. It claims this will lead to cost savings of £9 million a year.
Fibernet will, however, maintain the operation of its metropolitan services in Frankfurt.
An unspecified number of jobs will be lost as part of the closure of its German and French networks. ®
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