Qwest and KPN launch $700m European IP network

US 'next generation' voice and data services provider Qwest has announced a joint venture with Dutch incumbent telco, KPN to set up a high speed IP network throughout Europe.

The network - which is expected to cost $700m - will offer services in 15 countries across northern and eastern Europe. In some nations the fibre-optic network will be the most advanced carrier system in the country. The venture will also have access to Qwest's network in the US.

The network will target other carriers, Internet Service Providers and multinational businesses. Packages offered will include IP, voice and ATM data services.

The venture expects to pull in revenues of $400m next year and grow, on average, over 40 per cent annually.

Commentators are optimistic about the service. Eric Owen, research manager for European telecoms at IDC, noted that the venture had been opportunistic in launching after the collapse of Unisource.

"This is the first time one of the next generation carriers has struck a deal with one of the old school telcos," he said. "Unisource is floundering now that AT&T has pulled out, but if this joint venture is going to take off, then it is going to have to offer high quality services. The fact that it will be able to offer cheap international calls in Europe and the US is a big plus, because any network supporting multinationals must have trans-Atlantic links."