Cogent Communications Group, Inc. (Amex: COI), one of the fastest growing Internet
service providers in the industry, and Verio Inc., a leading global IP
provider and subsidiary of NTT Communications Corp., announced today a joint
agreement whereby Cogent will acquire the majority of Verio’s T-1 Internet
access customers and associated equipment. The transaction includes more than
2,400 business customers.
The acquired customers are located in 23 markets across the United States
already served by Cogent. Cogent serves over 85 markets in 11 countries with
Tier 1 Internet service delivered over a 22,000 mile fiber optic backbone and
over 8,300 miles of metro fiber. In the coming weeks, Cogent will begin
migrating the 2,400 dedicated access customers to Cogent’s 80 Gigabit Tier 1
optical backbone. The acquisition includes infrastructure to maintain
“Cogent’s core competitive advantage lies in the ownership of our IP-only
fiber optic network and our steadfast commitment to provide the lowest priced
highest quality Internet service in the industry. This model enables Cogent
to turn Verio’s T1 access customers into a healthy contributor to Cogent’s
profitability,” said Dave Schaeffer, CEO Cogent Communications. “Cogent has
already incurred the cost to complete its network footprint and now our focus
is on increasing network utilization, giving Cogent the marketshare to be even
more competitive on price and performance. We’re committed to deliver to
these customers the same high level of performance and service that they
currently receive from Verio.”
Verio will continue to offer superior quality, high-end Internet access
solutions to large network and corporate users, as well as global managed
services and hosting solutions. NTT Communications operates its Global Tier 1
IP network in regions including North America, Europe, Asia and Australia.
NTT Communications’ IP network delivers more connectivity to the Asia-Pacific
region than any other provider, and NTT Communications was recently recognized
as the 2004 Best Global Carrier at the World Communications Awards.
“Verio and NTT Communications will focus on global hosting, managed
services and higher-value Internet access and network solutions to fully
leverage the strength of the NTT Communications Global IP Network,” said Greg
Conley, CEO of Verio. “This will enable Verio and NTT Communications to meet
the demands of businesses, organizations and service providers who require
these types of solutions and levels of connectivity, and the highest levels of
In 2002, Cogent launched T1 and T3 Internet service through the
acquisition of PSINet assets. PSINet was the world’s first commercial ISP.
The dedicated access business acquired from Verio represents Cogent’s 13th
acquisition since 2001 and seventh acquisition this year.