Infonet replaces KPNQwest at parent company

Poisoned chalice?

Poisoned chalice?

Infonet has won bankrupt KPNQwest's position as the supplier of IP virtual private network services to customers of the troubled data carrier's parent company KPN. Since going bankrupt nearly two weeks ago KPN has supported KPNQwest's network to the tune of E500,000 (£300,000) per day while it attempted to find a new network carrier for its customers. KPNQwest was saved at the last minute by its customers yesterday when it announced it had collected enough owed cash to continue running the network till 1 July. KPN, which has a 40 per cent stake in the data carrier, is now in discussions with KPNQwest's trustees to decide what to do with the network. A spokesman from KPN said: "We have said we are prepared to pay what we owe to KPNQwest only if the network continues to run." KPN is currently rumoured to be in disagreement with the trustees over the exact amount it does owe, but the spokesman admitted it has already offered to pay part of the business debts. No other details were disclosed. Infonet's multi-protocol label switching (MPLS) enabled IP VPN network extends through 50 countries in Europe, Asia and North and South America. Both companies are currently involved in migrating KPN's customers to Infonet's network, that include Dutch airline KLM and brewery Heineken.