IMPT News:
(Applies to: IMPT TSIX)
IMPSAT Fiber Networks Announces an Approximately US$ 300 Million
Comprehensive Regional Agreement With 360networks
BUENOS AIRES, Argentina, Sep 5, 2000 (BUSINESS WIRE) -- IMPSAT
(Nasdaq:IMPT)
-- IMPSAT will sell dark and lit fiber capacity and related
services over its proprietary network in Argentina and Brazil
for approximately US$ 132 million
-- IMPSAT will provide telehousing services in the Region for
approximately US$ 122 million over the next 20-25 years
-- IMPSAT commits to purchasing submarine cable capacity to
360networks for US$ 46 million
IMPSAT Fiber Networks, Inc. ("IMPSAT" or the "Company") (Nasdaq:IMPT), a
leading
provider of broadband data transmission and private telecommunications
services
in Latin America with operations in the United States, today announced the
signing of an agreement with 360networks (Nasdaq:TSIX), a global provider
of
broadband and co-location services, for the provision of telecommunications
services in Latin America.
The agreement contemplates that IMPSAT will provide indefeasible rights of
use
(IRUs) over dark and lit fiber capacity along more than 4,600 kilometers of
the
network IMPSAT is constructing in Argentina and Brazil. Additionally, the
Company will provide 360networks with maintenance services and with
tele-housing
space in IMPSAT's facilities in Argentina, Brazil and Venezuela. On the
other
hand, IMPSAT commits to purchase high-bandwidth capacity on 360networks'
submarine cable network -- "360americas" --, that will enhance the
Company's
coverage of Latin America, and allow IMPSAT to increase its broadband
connectivity to the US territory.
For IMPSAT the agreement with 360networks is a major step toward
consolidating
its position in the Latin American carrier's carrier business.
Simultaneously,
the possibility of developing a more powerful backbone to the US will
enhance
IMPSAT's Internet business offerings. This link is the next step in
360networks'
plan to close its ring between Argentina and Brazil, ensuring its full
redundancy.
Regarding the contract, Ricardo Verdaguer, IMPSAT's chief executive
officer,
expressed: "This agreement with 360networks is very important to IMPSAT as
it
will allow us to enhance our competitive advantages in the Region.
Furthermore,
the agreement underscores the appropriateness of our decision to develop
our
Argentina-Brazil link, and reflects the potential of our network for the
provision of services to other carriers. IMPSAT's growing position in the
Latin
American carrier's carrier market reflects its reliability and the quality
of
its infrastructure".
"South America is an important part of our global strategy. Our long-term
strategic relationship with a regional leader such as IMPSAT enables us to
develop a comprehensive terrestrial network in South America quickly and
cost-effectively," said Greg Maffei, president and chief executive officer
of
360networks. "We are also pleased that IMPSAT is the third customer to buy
capacity on 360americas in the last month."
Under the terms of the agreement IMPSAT will provide dark and lit fiber
capacity
on an IRU-basis on over 4,600 kilometers of its network from Las Toninas,
on the
Argentine Atlantic coast to Rio de Janeiro, Brazil, linking the major
Argentine
and Brazilian cities, being Buenos Aires and Sao Paulo the most important
ones.
IMPSAT will also provide dark fiber for the backhaul connection in Rio de
Janeiro between 360networks' landing station and IMPSAT's telehouse along
two
redundant routes. These services will generate approximately US$ 96 million
in
revenues for IMPSAT.
IMPSAT will also provide maintenance services for the duration of the
contract
for approximately US$ 36 million. Finally, IMPSAT will provide 360networks
with
1,950 square meters of tele-housing space in its own facilities of Buenos
Aires,
Sao Paulo, Rio de Janeiro and Caracas, over approximately 20 years starting
in
2001 for US$ 4.9 million per annum, totaling approximately US$ 122 million.
On the other hand, IMPSAT commits to purchasing capacity along the three
rings
of 360americas network for US$ 46 million. This capacity will be provided
on an
IRU-basis and available for use over the next 20-25 years.
About IMPSAT
IMPSAT Fiber Networks, Inc. is a leading provider of Internet and private
network integrated data and voice telecommunications services in Latin
America.
IMPSAT is building an extensive pan-Latin American high capacity Broadband
network using advanced technologies, including IP/ATM switching, DWDM, and
non-zero dispersion fiber optics; the Company is also developing a strategy
to
build state-of-the-art data centers in the Region. IMPSAT provides services
to
more than 2,100 national and multinational companies, government entities
and
wholesale services to carriers, ISPs and other service providers throughout
the
region. The Company currently has operations in Argentina, Colombia,
Venezuela,
Ecuador, Mexico, Brazil, the United States, Chile and Peru.
About 360networks
360networks (TSIX:NASDAQ)(TSX:TSE) offers broadband network and co-location
services to telecommunications and data communications companies.
360networks is
developing one of the largest and most technologically advanced fiber optic
mesh
networks in the world. By mid-2002, the planned network will measure
131,500
kilometers (81,530 miles) and link more than 100 major cities with
terrestrial
routes in North America and Europe, and undersea cables linking North
America,
South America, Asia and Europe. 360networks is also developing nearly two
million square feet of network co-location space. More information is
available
at www.360.net.
Statements made in this press release that state IMPSAT's intentions,
beliefs,
expectations, or predictions for the future are forward-looking statements.
It
is important to note that the company's actual results could differ
materially
from those projected in such forward-looking statements. Information
concerning
factors that could cause actual results to differ materially from those in
the
forward-looking statements is contained in the company's filings with the
U.S.
Securities and Exchange Commission (SEC). Copies of these filings may be
obtained by contacting IMPSAT or the SEC.
Note: IMPSAT's 4,600 kilometer network over which the IRUs will be provided
is
depicted in the map on the following URL:
businesswire.com |
