BT extends European network to boost broadband coverage

BT is to extend its pan-European fibre optic network to an additional five countries.

Its transborder network will cover 12 countries and comprise 65,000km of optic fibre - which BT claims will make the company significantly larger than many of its competitors.

The Farland network will provide the backbone for Ignite, BT's newly-created broadband IP business, announced last month as part of its restructuring.

The 20,000km expansion, involving a £32m investment, will extend the European fibre-optic network run by BT and its European partners to cover Ireland, Spain, Sweden, Norway and Denmark, starting from the summer.

Europe's biggest transborder network, Farland, was launched in March last year with a 45,000km network, consisting 9,000km of fibre laid by BT and its partners, connecting the 36,000km of fibre in BT's joint ventures networks.

Currently, BT covers the UK, France, Germany, Italy, Netherlands, Switzerland and Belgium. A third phase will extend the network to eastern Europe.

Alfred Mockett, chief executive-designate of Ignite, said: "BT's European network is one of Ignite's key assets and is the largest and most sophisticated in Europe."

Barry Flanigan, senior consultant at Ovum, said: "This is a defensive move for BT. Essentially, it is doing this to join up all the in-country networks that it owns or is involved with in joint ventures."

Flanigan pointed out that any telecoms companies that own cross-border networks will be able to undercut their rivals - BT is not unique in setting up such a network.

He said: "BT is competing with many other European players who are taking similar measures, such as KPN/Qwest, France Telecom, Deutsche Telekom and Telia."