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KPNQwest Files for Bankruptcy

Posted by ryuzaki0 on from the ride-the-light dept.

ives writes "Today KPNQwest filed for bankruptcy. KPNQwest owns the most important fibre backbone in Europe. Apparently they are not planning on switching off their network, but without maintenance it will probably slowly degrade. The official press release can be found here."

2 of 189 comments (clear)

  1. dumbass question by JeanBaptiste · · Score: 4, Insightful

    Is this in any way related to the evil phone company (errr... monopoly) here in America that is called Qwest?

  2. Re:US Buyout? by j7953 · · Score: 5, Insightful

    The problem is, they're losing money on the backbone. According to several articles I've read, they're far from using its full capacity. That's why they ran out of money, after all. KPNQwest probably already did look for new investors, and obviously didn't find any. (Yes, it probably is cheaper to buy the network in a few weeks instead of investing now, but on the other hand in a few weeks the customers will already be operating via other providers, so the KPNQwest network will be even less profitable by then.)

    Parts of the network may be valueable to companies that already have an infrastructure in Europe and are looking to expand certain parts of it, but I very much doubt that any company will buy the whole backbone.

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