Dark fibre looms over KPNQwest deadline

By Alun Williams

Posted on 10 Jun 2002 at 15:07

The fate of KPNQwest - the pan-European data communications company and the largest carrier of IP traffic in Europe - goes to the wire.

Trustees of the company, which has filed for bankruptcy, have set a deadline for tonight for clients to settle outstanding bills. KPNQwest is desperate for revenue following the withdrawal of funding by the Dutch telco KPN, which along with Qwest created the troubled company.

If the deadline is not met, the EuroRings fibre-optic data network - which is the largest carrier of IP traffic in Europe - will be closed down.

Reuters, however, reports that administrators at KPNQwest are optimistic that the criteria of the deadline will be met - enough customers have indicated that they will make payments. If this is the case, administrators are intending to keep the network running at least until the end of the month.

While the prospect of 'dark fibre' looming over Europe still remains, KPNQwest has already advised its customers to find alternative carriers. This means that the real impact, on end-users, of the disappearance of KPNQwest will be determined by how successfully its corporate customers are in finding other carriers for their traffic.

Among the beneficiaries will be the major European telcos, such as BT. The company has already issued an official statement welcoming a number of major KPNQwest customers. BT Ignite - BT's business services and solutions division - has apparently already signed more than €6m worth (that's £3.9m) of new contracts.