Level 3, Flag in US$900m cable network deal to link Taiwan, Korea
By Bloomberg, Singapore.CNET.com
Tuesday, January 9 2001
HONG KONG--Level 3 Communications Inc, a global telephone and data network operator, and Flag Telecom Holdings Ltd, a worldwide carrier of voice and data, will lay a US$900 million cable network extension to link markets in Taiwan and Korea.
"Our agreement enables us to deploy additional capacity more rapidly and jump start our two new target markets in Asia--Korea and Taiwan," said Steve Liddell, chief executive officer of Level 3 Asia.
US cable operators such as Level 3 and Flag Telecom are boosting investment in Asia, where demand for telecommunications services is growing more rapidly than any other region of the world.
Level 3's existing North Asian cable system, which is under development, will form the eastern link of the new system constituting Hong Kong, Taiwan and Japan. Flag Telecom will develop the western link connecting Hong Kong, Korea and Japan.
The first link of the system, between Hong Kong and Japan, is expected to enter service in the second quarter of 2001. Flag Telecom will be responsible for the integration of the eastern and western links of the 10,000 kilometer system.
Liddell said the cable system, the first private network in Asia, will allow Level 3 and Flag to share operating costs, which will result in savings for target customers.
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