Prompted by the decision, the Bells said they would move more rapidly to build fiber networks to homes.
KMC Telecom of Bedminster, N.J., announced yesterday that it had completed a $182 million private placement of preferred stock that would help it build fiber optics networks in 39 cities.
"It isn't really economically feasible for a traditional phone company to build fiber optic for a relatively small number of users," he said.
The fiber optic networks being bought from Level 3, based in Broomfield, Colo., will connect 21 major European cities. Nextlink, which is based in McLean, Va., builds fiber optic networks and sells capacity on them to phone and Internet companies.
LEVEL 3 COMMUNICATIONS INC., Omaha, said it planned to spend $3.5 billion in capital expenses in 2000 and $2.5 billion in 2001 as it builds fiber optic networks around the world.
Telecommunications companies in the United States, from start-ups to long established businesses, spent hundreds of billions of dollars to build fiber optic networks, but many ran out of cash before they brought those lines the "last mile" to people's doors.
Verizon Communications, the nation's largest provider of local phone service, is expected to write down today a large part of a $1.7 billion investment it made in a company that builds fiber optic networks in metropolitan areas, people close to the companies said.
But local phone companies have complained about waste or unfair competition, like using some of the grants to build fiber networks where they already exist — including, in Colorado, in the easily accessible eastern plains that include Agate — rather than where they are most needed, in rural mountain towns.
"The original plan was to build fiber optic instrumentation," says Tony Ley, Harmonic's president and CEO.
