Alcatel Submarine gets FLAG contract:
FLAG Telecom awards Alcatel a contract for a DWDM submarine network in Asia The network will connect Hong Kong, South Korea and Japan and will complete the pan-Asian multi-terabit ring being developed by Level 3 and FLAG Telecom
Paris, 9th January 2001 -Alcatel, world leader in intelligent optical networking, has been awarded a contract by FLAG Telecom to design, manufacture and install a DWDM submarine cable network linking Hong Kong, South Korea and Japan (FWACS). This link will form the Western leg of a new six fiber pair, multi-terabit pan-Asian ring network (see map).
Level 3's North Asian Cable System (NACS), connecting Hong Kong, Taiwan and Japan - also being installed by Alcatel -will form the Eastern leg of the new network. Level 3 will also have three fiber pairs on the new system, which will be referred to as 'Tiger'. FLAG Telecom's three fiber pairs on the new system will be branded FNAL (FLAG North Asian Loop). The diverse ring system will be over 10,000 kilometres in length and will be managed and operated by FLAG Telecom. Total cost of the entire system is estimated to be approximately US$900 million.
The Hong Kong-Japan-South Korea cable is based on dense wavelength division multiplexing technology (DWDM), and the system is designed to provide optimal capacity at 3.84Tbit/s, carried by 64 wavelengths at 10Gbit/s on six fiber pairs. Alcatel has carried out several successful demonstrations with FLAG Telecom to prove Alcatel's capability to handle a transmission of 68 wavelengths at 10Gbit/s on a loop over 6,600 km.
Alcatel will provide a full turnkey network, encompassing all activities from design to installation and comprising wet and dry transmission equipment. In addition, a common network management system for both the new network and the current NACS system will be integrated to provide a single monitoring and control point for the entire cable network.
Using the existing liaisons from Japan to the U.S., this new submarine loop will allow high-speed connections within Asia. It will provide access to the United States via Japan, serving as a feeder in the Asia-Pacific region to carry the traffic to the most demanding countries of the region.
The network is to be constructed from two segments, connecting the submarine stations of Wada in Japan, Pusan in Korea and Hong Kong in China. The total length of the system will span approximately 5,000 km. The construction of the Eastern link of this network is at an advanced stage and the cable landing in Hong Kong has already been successfully completed. The two networks together will benefit from a totally secured ring configuration with full redundancy, ensuring the users total security for their data and voice traffic, over a distance of about 10,000 km.
"We are pleased to have signed this new contract with Alcatel and to continue our close cooperation with them," said Andrés B. Bande, Chairman and CEO, FLAG Telecom. "This is an area of the world where the demand for Internet transportation is soaring and the development of a North Asian Loop has been an important part of our network expansion plan. We now expect to have terabit connectivity between major Asian cities significantly ahead of our competition."
"We are already delivering, ahead of schedule, the Eastern leg of this new cable system in the booming region of Asia. We are delighted to complete the entire project", said Jean Godeluck, President of Alcatel's submarine networks activities. "Continuation of our long term co-operation with FLAG Telecom and Level 3 allows us to anticipate the entire project and deliver the system on time. This network is an extremely good example of the completely tailored solutions that we can propose to our customers in terms of location, capacity and architecture. Furthermore, this contract proves that we're continuing to reinforce our presence in the exploding market of the Asia-Pacific region."
About FLAG Telecom
FLAG Telecom (Nasdaq: FTHL; LSE: FTL) is a leading independent global carriers' carrier providing an innovative range of products and services to the international carrier community, Application Service Providers (ASPs) and Internet Service Providers (ISPs) across a global network platform optimized to support the next generation of IP over optical data networks. Network Services is a growing part of the FLAG Telecom business portfolio and is expected to generate recurring revenues for the company. Its enhanced range of products and services enables companies across the globe to innovate and thrive in the new e-economy. FLAG Telecom has established IP gateways in San Francisco, New York, London, Tokyo, Madrid and Cairo. Additional POPs are located in Hong Kong and Seoul and Singapore is expected to be added to the network shortly. The FLAG Europe-Asia cable stretches from the UK to Japan and entered commercial service in November 1997. FLAG Atlantic-1 (FA-1), the world's first dual transoceanic terabit cable system, is currently under construction and is scheduled to enter service in Q1 2001. FLAG Pacific-1 is the longest transoceanic DWDM system announced to date and is expected to enter service in 2002. Principal shareholders in FLAG Telecom are: Verizon Communications (NYSE:VZ) (formerly Bell Atlantic and GTE) (USA) and Dallah Al Barakah Group (Saudi Arabia). For further information, visit www.flagtelecom.com.
About Level 3 Level 3 (Nasdaq:LVLT) is a global communications and information services company offering a wide selection of IP-based services including broadband transport, colocation services, submarine transmission services and the industry's first Softswitch based services. Level 3 offers services primarily to communications intensive companies, which deliver their services over the Level 3 Network. Its Web address is www.Level3.com.
About Alcatel
Alcatel is the only vendor to master all optical network elements, from optical components, optical fibers and DWDM systems to core routers and network intelligence, and from terrestrial to submarine solutions. Alcatel is also the only company to provide both terrestrial and marine services for the installation and maintenance of global, seamless optical networks. According to RHK's 2000 study, Alcatel holds the number two position in global optical transport market with 20% market share, distancing itself from all other competitors. RHK also reported that Alcatel reaffirms its number one position in submarine networks with 41% worldwide market share. Moreover, Alcatel claims to be the world leader in total terrestrial and submarine DWDM systems, in digital cross-connects, which contain the enabling technology for operators to offer high bandwidth services, and in SDH networks. Alcatel's optics business comprises terrestrial and submarine transmission systems, fiber optics and optical components. Alcatel has launched a new class of Alcatel stock which is intended to track the performance of Alcatel Optronics, the Company's optical component business.
Alcatel is the world leader in delivering full turnkey submarine network solutions and services. Alcatel leads this industry in terms of: having the highest sold capacity up to 8.4 Tbit/s for the long-haul systems and 3.6 Tbit/s for the short-haul ones, using the latest DWDM technology; having the largest manufacturing capacity at 85,000 km per year strategically located around the Globe; managing 11 dedicated purposed-designed vessels for a tight control on the delivery schedule, including marine maintenance. Current contracts, worth US$ 5.8+ billion, include the most advanced undersea networks in the world today: 360americas and FLAG Atlantic-1 systems in the Atlantic, the 360pacific, FLAG Pacifc-1, Japan-US and Southern Cross transpacific systems, and the MAC and MAYA-1 systems in the Americas and the SAT-3 around Africa. Alcatel builds next generation networks, delivering integrated end-to-end voice and data networking solutions to established and new carriers, as well as enterprises and consumers worldwide. With 120,000 employees and sales of EURO 23 billion in 1999, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: alcatel.com
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