RCN gains on dark fiber deal
The Street was smiling on RCN Corp.'s stock today, following news that the company has inked a multi-million dollar dark fiber deal with Cogent Communications. RCN shares were up 5 percent in mid-day action.
Under the terms, RCN and Starpower - its joint venture with Pepco Communications - will provide dark fiber rings and building lateral connections in New York City and Washington, D.C. More than 50 miles of backbone fiber will be used to connect a dozen commercial properties with Cogent's points-of-presence in Manhattan and Washington, D.C.
Cogent turned to RCN to assist it in meeting its customers' bandwidth needs. "The dark fiber with which RCN is providing us will be instrumental in helping us meet the strong and growing demand for bandwidth Internet connectivity in New York and Washington, D.C.," says Dave Schaeffer, CEO and founder of Cogent.
Although exact financial terms of the 20-year agreement were not disclosed, RCN says it is a multi-million dollar deal.