February 13, 2001, 2:24 PM — Genuity Tuesday announced that it is partnering with Yipes Communications in a deal that includes a multimillion-dollar investment, a commitment to purchase services, and an opportunity to resell each other's services.
Specifically, Genuity is making a $10 million investment in Gigabit Ethernet service provider Yipes. The cash investment will go toward the build-out and deployment of the Yipes network and services.
For its part, Yipes has committed to buy more than one third of its national backbone infrastructure from Genuity, as well as purchase managed Internet services from Genuity "over the next several years," according to Genuity.
Yipes will use the Genuity network services to link its regional optical IP networks across the country. Currently, Yipes offers high-speed services in 20 U.S. cities.
The deal also includes plans to resell services. Genuity likely will sell Yipes managed optical services to its customers under the Genuity brand name, a company spokesman says. Yipes offers Gigabit Ethernet WAN services that range from 1M bit/sec up to 1G bit/sec.
Yipes also may resell Genuity's voice-over-IP and VPN service offerings to customers.