Metropolitan Fiber Systems

Metropolitan Fiber Systems. It was a pioneering competitive access provider that built and operated high-capacity fiber-optic cable networks in major urban areas across the United States. Founded during the era following the Bell System divestiture, the company challenged the dominance of incumbent local exchange carriers like the Regional Bell Operating Companies. Its extensive infrastructure and aggressive growth strategy made it a significant player before its acquisition by the telecommunications giant WorldCom.

History

The company was established in 1988 by entrepreneurs Royce Holland and James Crowe, capitalizing on regulatory changes after the Modified Final Judgment that broke up the AT&T monopoly. Its founding philosophy was to provide businesses with an alternative to the ILEC for local telecom services, initially focusing on the lucrative Chicago market. This period saw the rise of several CLECs, but it distinguished itself by owning its physical network infrastructure rather than reselling services. The company's rapid success attracted significant investment, including from the influential firm Welsh, Carson, Anderson & Stowe, fueling a national expansion plan throughout the early 1990s.

Network infrastructure

The core asset was a series of interconnected SONET-based fiber-optic rings constructed beneath the streets of major metropolitan areas. These networks were engineered for high reliability, with self-healing capabilities that automatically rerouted traffic in the event of a cable cut. Key network nodes were often located in strategically important carrier hotels and major office buildings, providing direct connections for enterprise customers. This physical plant was considered superior to the older copper-based networks of the Bell companies, offering greater bandwidth and lower latency for data-intensive applications.

Acquisitions and expansion

Growth was executed through a dual strategy of constructing new networks in target cities and acquiring existing competitive carriers. Significant market entry was achieved by purchasing the assets of other CAPs like Teleport Communications Group in several regions. The company also expanded internationally, establishing a presence in key European markets such as the United Kingdom and Germany through partnerships and investments. This consolidation phase in the mid-1990s was part of a broader industry trend, as companies like MFS and its rivals sought to build nationwide footprints to compete with giants like AT&T and MCI.

Services and technology

It offered a comprehensive suite of telecom services primarily to large corporations, financial institutions, and government agencies. Core offerings included high-speed data transport, LAN interconnection, and dedicated Internet access. The company was an early provider of ATM and Frame Relay services, facilitating the growing data networking needs of the 1990s. Furthermore, it provided private line circuits and colocation services, enabling customers to connect directly to long-distance carriers and ISPs without relying on the RBOC.

Corporate affairs

The company was publicly traded on the NASDAQ stock exchange under the symbol MFSI. Its executive leadership, including Royce Holland, was known for aggressive business tactics and a focus on shareholder value. In 1996, the company made a landmark move by acquiring the Internet backbone provider UUNET, which was then the largest commercial Internet network in the world. This strategic purchase aimed to combine robust local fiber access with global IP connectivity. The successful integration of these assets ultimately made the entire operation a highly attractive acquisition target for WorldCom, leading to a multi-billion dollar merger completed in 1998.

Category:Telecommunications companies of the United States Category:Companies established in 1988 Category:Defunct telecommunications companies