Jul 3, 2001 : Genuity Opens Dutch Data Center
📅 - US-based network services provider Genuity Inc. (genuity.com) opened its first European Internet center near Amsterdam on Tuesday, and said its managed services business was seeing less price pressure.
Genuity, which agreed to acquire French peer Integra in June, says it needs a European presence to serve many of its large U.S. clients active in Europe, according to Chief Marketing and Strategy Officer James Freeze.
The firm's clients include Internet service providers such as AOL Time Warner's America Online, and large U.S. corporations. It expects to add European companies and ISPs to its customer list as well.
And according to Genuity, in addition to being able to serve its U.S. clients better, the European market was also important as prices were being pressured less there than in the United States. Prices for managed telecom services in Europe are steadier than those for bandwidth, or simple data capacity, sold to businesses and ISPs, Genuity said.
The company pointed to a downward pressure on prices for bandwidth services, but said that the pressure was not as strong in Europe against managed services, which is still a nascent business there. However, Genuity is facing heavy pressure against prices for bandwidth services in the United States.
The company cut its 2001 revenue forecast in May. And domestic revenues from its largest customer, America Online, decreased 20 percent year-on-year in the first quarter 2001 due to contractual price reductions.
According to Genuity, the only major European country where Integra does not have an Internet centre is the Netherlands, but the company would not give any details about the progress of the 125 million euro Integra acquisition while regulators were still scrutinizing the deal.
The agreement would create a group with 2001 pro-forma sales of over 1.5 billion euros.
Genuity says its advantage in the European market would be the broad scope of its services. The company says that while most of its European competitors would be able to offer simple colocation services, but many would lack the complete managed package offered by Genuity.
Genuity, which agreed to acquire French peer Integra in June, says it needs a European presence to serve many of its large U.S. clients active in Europe, according to Chief Marketing and Strategy Officer James Freeze.
The firm's clients include Internet service providers such as AOL Time Warner's America Online, and large U.S. corporations. It expects to add European companies and ISPs to its customer list as well.
And according to Genuity, in addition to being able to serve its U.S. clients better, the European market was also important as prices were being pressured less there than in the United States. Prices for managed telecom services in Europe are steadier than those for bandwidth, or simple data capacity, sold to businesses and ISPs, Genuity said.
The company pointed to a downward pressure on prices for bandwidth services, but said that the pressure was not as strong in Europe against managed services, which is still a nascent business there. However, Genuity is facing heavy pressure against prices for bandwidth services in the United States.
The company cut its 2001 revenue forecast in May. And domestic revenues from its largest customer, America Online, decreased 20 percent year-on-year in the first quarter 2001 due to contractual price reductions.
According to Genuity, the only major European country where Integra does not have an Internet centre is the Netherlands, but the company would not give any details about the progress of the 125 million euro Integra acquisition while regulators were still scrutinizing the deal.
The agreement would create a group with 2001 pro-forma sales of over 1.5 billion euros.
Genuity says its advantage in the European market would be the broad scope of its services. The company says that while most of its European competitors would be able to offer simple colocation services, but many would lack the complete managed package offered by Genuity.
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