FiberTower and Zayo Enter Into Long-Term Fiber Network Agreement
SAN FRANCISCO and LOUISVILLE, Colo., Jan. 14, 2011 /PRNewswire/ — FiberTower Corporation (Nasdaq: FTWR), a wireless backhaul services provider, and Zayo Group (“Zayo”), a provider of telecom and internet infrastructure and carrier neutral colocation services, have entered into a multi-year agreement to lease 2,500 fiber miles of dark fiber on a long-term basis with an option to lease additional fiber.
Zayo Fiber Solutions (ZFS), the dark fiber focused business unit of Zayo, will be providing FiberTower with connectivity to existing on-net sites and will also build to off-net sites. ZFS has over 8,500 route miles of dark fiber network serving 40 markets in 20 states.
Kurt Van Wagenen, FiberTower’s president and chief executive officer, stated, “To serve the explosive demand for wireless backhaul, FiberTower has been executing on an aggressive growth strategy, which includes expanding our fiber footprint in both existing and new markets. Our enhanced relationship with ZFS provides cost effective, long term access to its extensive dark fiber footprint, enabling us to better support the backhaul needs of our customers.”
“The telecom and internet infrastructure service we provide, dark fiber, acts as a key building block that allows our customers to cost effectively support the continued rapid growth in wireless, video, data networks and the internet,” stated Matt Erickson, president of ZFS. “We are eager to pursue scalable fiber solutions for our customers, as we have with FiberTower, and we look forward to this collaboration.”
FiberTower is a backhaul and access services provider focused primarily on the wireless carrier market. With its extensive spectrum footprint in 24 GHz and 39 GHz bands, carrier-class fiber and microwave networks in 13 major markets and master service agreements with nine U.S. wireless carriers, FiberTower is considered to be a leading alternative carrier for wireless backhaul. FiberTower also provides backhaul and access service to government and enterprise markets. For more information, please visit our website at www.fibertower.com.
About Zayo Group
Based in Louisville, Colorado, privately owned Zayo Group (www.zayo.com) is a provider of bandwidth infrastructure solutions and carrier neutral colocation. Zayo Group is organized into autonomous business units supporting customers who require lit and dark fiber services and carrier neutral colocation. Zayo’s business units provide these services over their regional, metro and fiber to the tower networks.
This news release includes “forward-looking” statements, as that term is defined in the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission, or SEC, in its rules, regulations and releases. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. These include statements regarding, among other things, our future financial performance and results of operations including guidance for expected ranges of 2010 revenue, Adjusted EBITDA and capital expenditures, our financial and business prospects, the deployment of our services, capital requirements, financing prospects, planned capital expenditures, expected cost per site, anticipated customer growth, expansion plans, and anticipated cash balances.
There are many risks, uncertainties and other factors that can prevent the achievement of goals or cause results to differ materially from those expressed or implied by these forward-looking statements. These include, among other things, negative cash flows and operating and net losses, additional liquidity requirements, potential loss of significant customers, downturns in the wireless communication industry, regulatory costs and restrictions, potential loss of FCC licenses, equipment supply disruptions and cost increases, competition from alternative backhaul service providers and technologies, along with those risk factors described in the company’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, as filed with the SEC.
SOURCE FiberTower Corporation