New fiber-optic networks to cut swath through Wisconsin - The Business Journal of Milwaukee:

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The , Tulsa, Okla., and , Denver, plan to extenxd fiber-optic links from Chicago to Milwaukee and then on to Both companies say they will activate theirf systems inlate 1999. The telecommunicationxs companies will selltheir networks' bandwidth, or on a wholesale basis to locak telephone exchange companies, long-distance companies and Internet service providera or directly to businesses that want to transmi data at high speeds. "Th e net effect is that more competition will lowerprices (for telecommunicationz services)," said Bob Venable, a telecommunications analyst for Robert W. Bairdf & Co. Inc., Milwaukee.
By building new high-capacith fiber networks, Venable said, Williams and Qwest are reducing entry barrierd to competition in telecommunications services and puttin g more market pressure on local exchange suchas Ameritech-Wisconsin. "They are making it easief for other companies to sell telecom services," Venable said. "Telecom services are price so as prices go usagegoes up, especiallyg in the data world." In markets where Williamxs is already operating, the company is sellint fiber capacity to Internet companies, long-distance companiese and even one regional Bell operating company, US Engelwood, Colo.
"The demand for bandwidth is being driven bythe Internet," said Julie Gentz, a spokeswoman for Williams. Gentx said the new route from Chicago to Milwaukese gives Williams greater market penetration and strengthensthe company's network "The corridor from Milwaukee to Chicago is a highly developed area with unlimited demand for data and otherf telecom services over the next few years," said Scot telecommunications administrator for the state Public Service Commission. Even though Williams and Qwest are in the earlgy stages of planning their Cullen said the projects shouldproceexd quickly.
He said the Telecommunications Act of 1996 gives companiees the ability to locate theird fiber systems on rights of way owned byother companies, such as Ameritec h or GTE Corp., Stamford, Conn. Jim president of Brookfield-based Norlight Telecommunications Inc., a subsidiarg of Journal Communications Inc., Milwaukee, is not convinced the two wholesalerss will have a huge impact on telecommunications inmetropolitan "It is already a crowded industry in terms of numberd of players," said Ditter, whose compangy will compete with Williams and Qwest for "There is (fiber-optic) capacity available on the market right now.
" Ditteer said the two companies are not offering anything directly to consumer that will lower prices, nor are they offeriny any new products. "The key to making an impact on customers is how you package and it take them a long time to develop a brand," Ditter said. Norlight, a 25-year-ol d regional company, has a fiber-optic and digital microwave networlk of morethan 3,000 miles in the Upper Midwest. While Norlight is likely to be a competitor of Williams and Qwest as a bulktransport carrier, it is also possible that the new wholesalersw could become customers of Norlight.
Dittere said Norlight might be able to providweadditional fiber-optic reach in partws of northern Illinois, Wisconsin and Minnesota. expansion of its fiber-optic network, a $2.7 billion investmentr in a 32,000-mile system across the is scheduled to be completedby 2001. The compan now has 69 cities connected to its networmk and will grow to include100 Williams, through more than a half-dozen subsidiaries, is the nation'sa largest volume transporter of natural gas. Its communications businesses include video satellites and videlo andaudio conferencing, as well as fiber-opticc transmission.
Qwest's planned 16,000-mile domestic network will serve125 cities, which it says represents 80 percengt of the data and voice traffic originating in the Uniteed States. Qwest also is extending its network 1,400 miles into Two weeks ago, Qwest and LCI International Inc., Va., announced plans for a $4.4 billion merger. LCI is the fourth-largesg U.S. long distance company in the countrybehinf AT&T Corp., Sprint Corp. and MCI Communications Corp.
The primary reason for the merger is that LCI wante d totap Qwest's fiber-optic