PSINet Buys Three Hong Kong ISPs

PSINet Buys Three Hong Kong ISPs

PSINet Inc. has acquired three more Hong Kong Internet companies and also announced today that it has signed a deal to buy dark fiber-optic strands in California.

The Internet service provider (ISP) has bought SpiderNet, HugeNet and AsiaNet in Hong Kong, making it one of the largest ISPs in the Asia/Pacific region, following a flurry of other acquisitions in Japan, Korea and Hong Kong. PSINet did not disclose financial terms of the deals.

PSINet has made 17 acquisitions this year, focusing efforts in the top 20 global markets, said spokesman Michael Binko in an interview today. Nine of this year's acquisitions have been in the Asia/Pacific region, a target area for the ISP.

"These (acquisitions) extend and expand that presence," he said, adding that PSINet is finding growth opportunities in the Asia/Pacific regional economic crises because local ISPs have been more apt to consolidate due to financial pressures, he said.

The California dark-fiber optic strands agreement was signed with Metromedia Fiber Network Inc. Dark fiber strands are unused lines. The strands follow a circular route around the San Francisco Bay area. The route travels south to Silicon Valley and includes San Jose and Santa Clara and goes east to Hayward. The dark fiber will support Internet services in various cities along its path.

The deal is PSINet's sixth acquisition of fiber-optic capacity. Parts of the fiber optic network will be activated by the end of next year, with activation completed in 2000. The additional fiber-optic capacity will be used to expand service locations in the U.S. and for termination points for data transport for the Asia/Pacific region, Binko said.

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