Corvis seeking revenue from telecoms services

27 Feb 2003

US optical network manufacturer Corvis is to diversify into telecoms services with the purchase of the long distance network of its client Broadwing for USD129 million. The deal comes despite increasing shareholder pressure at rival equipment manufacturers for businesses to cut their losses and close down. The collapse in demand for long-haul fibre networks meant Corvis recorded sales of just USD20 million last year, down from USD188 million in 2001; amassing losses of USD1.9 billion over the past two years.