Colt in network link with rival
Wednesday 05 May 1999
Colt said it had agreed to share the costs of building Level 3 International's European network in exchange for Level 3's help in building Colt's German network, which will cover 2,600km. Level 3's network, linking Paris, Frankfurt, Amsterdam, Brussels and London, will cover 2,800km. The agreement is likely to raise speculation that the two companies might consider closer co-operation, such as a merger.
Level 3 International is a division of Level 3 Communications, based in Omaha, Nebraska, which is building an international fibre-optic phone and data network.
Both companies are unprofitable as they spend to build advanced networks able to carry data and voice traffic for businesses. "It makes enormous commercial sense for a lot of the cost to be shared," said Peter Roe, an analyst at Paribas Capital Markets, who rates Colt a "buy". But he added: "Just because two people are dancing, doesn't mean they're going to get married, but it will be an intriguing prospect for the market."
Shares in Colt, which is based in London, rose 23p, or 2 per cent, to 1,184p. Level 3 shares rose $1 to $88 on Nasdaq.
Colt, which operates a network in 13 cities in eight European countries, plans to provide a service in at least 24 cities by the end of 2000. The agreement with Level 3 "is a very cost-effective way of meeting our customers' needs," Paul Chisholm, Colt chief executive officer, said in a statement.
While Colt's networks focus on providing service within big cities, Level 3 is working on building a network between cities. It expects to complete its US intercity network during the first quarter of 2001.
Culinary experts in The Netherlands thought it was 'fresh' and 'tasty'
Of all the computers Apple has ever made there’s only one that Steve Jobs had to sell his car to finance
Marvel has released first teaser trailer week early after it leaked online
- 1 As an ex prostitute, I urge all the political parties to commit to the Sex Buyer Law
- 2 Nokia no more: Microsoft drops once-ubiquitous mobile name – in favour of its Lumia brand
- 3 Renee Zellweger on plastic surgery: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
- 4 Australian café owner sparks debate after saying 'No' to having unruly children on premises
- 5 Couple die within 28 hours of each other after being married for 73 years
Renee Zellweger on plastic surgery: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
Isis releases first video showing the stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
Diwali: What is the festival of lights and how is it celebrated around the world?
Nelson Bunker Hunt dead: Former world’s richest man dies in 'modest circumstances' in US after losing his fortune
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
iJobs Money & Business
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...