Alcatel will supply equipment worth about $1.1 billion for a new
trans-Pacific fiber-optic cable.
plus minium $v100 million for land- based communications network.
If 360network second trans-Pacific netowork will be build, it could mean up
to another $600 million in
supply contracts for Alcatel.
quote.bloomberg.com
ews.ht
Vancouver, Oct. 31 (Bloomberg) -- Alcatel SA will invest as much as $1
billion in 360networks
Inc. and supply materials to the Vancouver company
for a planned underwater fiber-optic cable
linking North America and Japan. 360networks stock
rose as much as 19 percent.
360networks said the investment by Alcatel, Europe's
No. 2 maker of phone equipment, will
consist of convertible preferred shares. Alcatel will
supply 360networks with underwater
telecommunications equipment worth about $1.1 billion
for a new trans-Pacific fiber-optic cable.
Construction will begin in November, and the cable
will be in service by April 2002.
``We see demand for trans-Pacific traffic exploding''
over the next few years, 360networks Chief
Executive Greg Maffei said on a conference call to
analysts.
Singapore Telecommunications Ltd., Southeast Asia's
biggest phone company, has agreed to buy
at least $200 million worth of capacity on the
planned trans-Pacific cable, Maffei said.
360networks also agreed to buy at least $100 million
in Alcatel equipment for construction
projects on 360networks' land- based communications
network.
360networks said it may also build a second
trans-Atlantic cable to mesh with one already under
construction.
Maffei said his company will decide within 90 days
whether to proceed with a second
trans-Atlantic cable. If the project goes ahead, it
could mean up to another $600 million in
supply contracts for Alcatel, he said.
360networks rose C$2.85, or 12 percent, to C$26.95 in
late Toronto trading after being halted
for much of the day. Shortly trading resumed, the
shares rose as high as C$28.70. |
