CALGARY, Nov. 17, 2011 /CNW/ - Axia NetMedia Corporation (Axia) today announced that its French-based company Covage has been awarded
a 25 year network agreement to operate the existing Nantes Urban
Community Network (Nantes Network) as well as build and operate Fibre to the Premise (FTTP) extensions to enterprises and business parks in the region. The
community of Nantes is in the west of France, has 24 municipalities and
a population of 590,000 people. The agreement is expected to be signed
in late November 2011 with commencement of the work in January 2012.
Network deployment is expected to be completed within 18 months.
The Nantes Network will include 357 kilometres of fibre, of which 170
kilometres are already built. The Nantes Network currently connects
main public service sites (health facilities, universities, local
administrations). Following the transfer of these customers to Covage,
the Nantes Network will begin to contribute revenues to Covage.
Covage's total investment is projected to be €10.0 million. Once the
network FTTP extensions are complete, Covage will sell next generation
network services to retail service providers in the area.
Jean-Michel Soulier, President of Covage commented, "Covage is pleased
to have won this opportunity to provide services in Nantes to both
public and enterprise customers. The Nantes Network will connect to
our backbone infrastructure which, coupled with our suite of services,
will make an attractive offering to our existing and new customers."
Axia sells services over fibre optic communications infrastructure in
jurisdictions that have implemented the Axia NGN Solution. To date,
Axia has networks in Alberta, France, Singapore, Spain and
Massachusetts. Axia trades on the TSX under the symbol "AXX".
This News Release contains forward-looking statements, including,
without limitation, statements containing the words "should",
"believe", "anticipate", "may", "plan", "will", "continue", "intend",
"expect", "estimate" and other similar expressions which constitute
"forward-looking information" within the meaning of applicable Canadian
securities laws. These statements are based on our current
expectations, estimates, forecasts and assumptions about the operating
environment, economies and markets in which we operate and are subject
to important assumptions, risks and uncertainties that are difficult to
predict. Examples of these statements would include those where Axia
forecasts its success and timing in winning new NGN business, the
timing of completion and estimated total costs of our networks, the
revenues and operating costs associated with these networks over time,
and Axia's ability to generate future cash flows and avail itself of
other financing alternatives given current market conditions. The
assumptions, risks and uncertainties that could cause actual results to
differ materially from the forward-looking information, include, but
are not limited to, changes in customer markets, changes in demand for
our services, our inability to deliver services in a timely and cost
efficient manner, technological change, general economic conditions and
other risks detailed from time to time in our ongoing filings with the
Canadian securities regulatory authorities, including those in our
Annual Information Form, which filings can be found at www.sedar.com.
Given these assumptions, risks and uncertainties, readers are cautioned
not to place undue reliance on such forward-looking statements. Unless
otherwise required by applicable securities laws, we undertake no
obligation to publicly update or revise any forward-looking statements
either as a result of new information, future events or otherwise.
SOURCE Axia NetMedia Corporation
For further information:
please visit Axia's website at www.axia.com, or contact:
VP, Investor Relations and Communications
Axia NetMedia Corporation