STOCKHOLM, Sweden, Jan. 8, 2002 (PRIMEZONE) -- Song Networks Holding AB (Nasdaq:SONW) (Stockholm Exchange:SONW) announces that Song Networks will purchase the international fiber network from the bankruptcy estate of Enitel of Norway. Song Networks will then be able to link its Nordic fiber network, which currently includes most of the major Nordic cities, with the UK, Netherlands and Germany. Song Networks will thereby have its own North European fiber network featuring almost unlimited capacity.
Song Networks has secured an enormous network capacity to serve some of the largest urban areas in northern Europe. To meet market requirements for transmission speeds and capacity, Song Networks has acquired almost unlimited broadband capacity in northern Europe. Song Networks will take over a network with a current capacity of 20 Gbps that can be increased to 160 Gbps using existing equipment. The agreement covers twin fiber purchased as IRU over 15 years and linked to Song Networks' Nordic network in Stavanger on the west coast of Norway via the oil rigs in the North Sea to the UK, Netherlands, Germany and then back to Song Networks' Nordic network in Copenhagen.
"The agreement means that Song Networks gains access to both internet capacity and international telephony capacity in central European cities on its own network. Together with leased capacity being replaced by our own capacity, this means that we can cut costs significantly and we will be able to supply communications solutions from our own capacity that we control. With our own infrastructure in the Nordic region and central parts of Europe we will become a key supplier of international communications services for data/internet and traditional voice traffic," says Ketil Kivedahl, MD of Song Networks AS, Norway.
Song Networks' Nordic broadband network is constructed in rings to ensure the highest possible access and security. The new network is designed in the same way and is ideal for linking. Because Song Networks can automatically redirect traffic should any faults occur on the network, uninterrupted communication with high capacity and quality are safeguarded.
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About Song Networks, the former Tele1 Europe, (Nasdaq:SONW), (Stockholm Stock Exchange: SONW) Song Networks is a rapidly expanding data and telecommunications operator with activities in Sweden, Denmark, Finland and Norway. The company provides broadband solutions for data, internet, hosting and voice, to businesses in the Nordic region. Song Networks is currently the only pan Nordic operator investing in local access networks with broadband capacity. The company is constructing networks in the 80 largest cities in the Nordic region. The access networks, which are linked by a long-distance network, will be one of Europe's fastest data and internet super-highways with an initial capacity for customers of up to one gigabit. The company was founded in 1995 in Sweden and has approximately 1,200 employees. The head office is in Stockholm and there are an additional 31 offices located in the Nordic region. For further information, please visit our website at www.songnetworks.net
Certain statements contained in this press release contain "forward- looking statements" within the meaning of the U.S. federal securities law. Such statements are based on the current expectations of the management of Song Networks Holding AB only, and performance is subject to risks, uncertainties and other factors that could cause actual results to differ materially from these statements. Such risks include, but are not limited to, adverse regulatory, technological or competitive developments; decline in demand for the company's services or products; inability to timely develop, introduce and market new technologies, products and services; pricing pressures resulting from competition; unforeseen construction delays; and the inability to successfully manage systems failures or shutdowns and service interruptions or reduced services to customers. For a more detailed discussion of such risks and uncertainties affecting the company, please refer to Song Networks Holding AB's reports that are filed from time to time with the U.S. Securities and Exchange Commission, including the company's annual report on Form 20-F and reports on Form 6-K.
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