Allied Fiber has secured funding to complete construction of the first phase of its new dark-fiber network in the eastern US. The network-neutral system will be integrated with colocation facilities and wireless towers.

Allied CEO Hunter Newby said the system would address "numerous backhaul and capacity issues" in the US.

"In response to the proven demand from our customers and the industry, we will be able to complete the phase one build and deliver the physical, long-haul and short-haul dark fiber, colocation and interconnection capabilities that are so critical for the next generation of network requirements in our country," Newby said in a statement.

The first phase will provide 744 dark fibers. It will link New York City, Chicago and Ashburn, Virginia.

Allied plans to interconnect directly with multiple submarine cable systems, linking Atlantic, Caribbean, Latin American and Pacific cables. The company will use the submarine interconnect system to provide express traffic routing through the US.

The system uses a new multi-duct design, which allows intermediate access to long-haul fiber duct through parallel short-haul duct along the entire route. The approach gives access to dark fiber through all points between major cities.

The 528-count long-haul cable will be coupled with the 216-count short-haul cable. The system will be a composite of Single-Mode and Non-Zero Dispersion Shifted fibers.

Allied will also provide 19 colocation facilities ÔÇô about 1,000 sq ft each ÔÇô placed at about every 60 miles along the route for network interconnection amount multiple tenants.

Construction of Phase I has commenced and the firm's current plan is to complete it by May 2011. Target completion time has changed from the previous plan to complete construction early in the fourth quarter of the current year.

According to an earlier announcement by Allied, the first phase is going to cost about $140m. The project's new investors include affiliates of Falcon Investment Advisors and Abry Partners. Other investors include affiliates of Corinthian Capital.