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March 20, 2002 — (WEB HOST INDUSTRY REVIEW) — TELUS Corporation said today it had reached an agreement with Metromedia Fiber Network (MFN) to acquire all of MFN’s interest in a joint-venture company established to construct a fiber network in Toronto.
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The company said it purchased MFN’s interest for “nominal consideration.” Earlier this week MFN, which provides fiber-optic Internet connectivity to high-end clients, warned it might be forced to file for bankruptcy protection if it cannot restructure its debts.
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TELUS held a majority of the share interest in the company prior to acquiring the remainder of the outstanding shares. The company was established two years ago to plan and build a high-capacity fiber optic network in the Greater Toronto Area.
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The Canadian telco said the network will provide a volume of broadband fiber services not currently available in Toronto from any other provider.
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“TELUS is reinforcing its national capabilities through initiatives such as this project and ensuring we are able to be a single source for integrated data and Internet services,” said Joe Grech, TELUS executive vice-president and president of TELUS Global Trading and Partner Solutions. “The acquisition of the entire interest in the Toronto build allows TELUS to accelerate our progress on the path which we set off on two years ago.”
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TELUS said the project will result in major fiber rings in and around the Toronto area, allowing the company “to provide diversified access to many locations throughout the city,” thereby preventing service interruptions should a connection be accidentally cut.
