Vebacom GmbH, where Cable & Wireless Plc has 45% – confirmed that it had agreed with Deutsche Bahn AG to build a Germany-wide fibre optic cable network along the railway operator’s tracks. The network will initially consist of 1,800 miles of fibre, expanding to 2,450 miles by 1998. It will link all major German towns and will be used by both Vebacom and Deutsche Bahn’s DBKom telecommunications arm to compete with Deutsche Telekom AG after deregulation in 1998. Vebacom confirmed a report in Handelsblatt that investment in the jointly-owned network would be $285m by 2000. Deutsche Bahn is also studying bids for 49.9% of DB-Com GmbH.
