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Technology Stocks : Alcatel (ALA) and France

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To: Steve Fancy who wrote (2877)1/12/2001 7:41:50 AM
From: zbyslaw owczarczyk  Read Replies (1) of 3891
 
Cable & Wireless awarded Alcatel IP optical conract:

Cable & Wireless and Alcatel to Build World's Most Advanced

Transatlantic Cable

Business and Technology Editors

LONDON--(BUSINESS WIRE)--Jan. 12, 2001--Cable & Wireless (NYSE: CWP), the global
telecommunications group, today announced it is building the world's most advanced Internet Protocol
(IP) transatlantic cable, known as Apollo, together with Alcatel, world leader in intelligent optical
networking, to meet growing IP and data demand.

The new cable system is scheduled to begin service in the summer of 2002 and will make available to
Cable & Wireless customers significant bandwidth at lower cost, well in advance of competing systems
using similar technologies. It anticipates the huge demand for bandwidth that analysts forecast to grow on
average at around 100 per cent per annum*, as a result of the rapid adoption of business internet
communications worldwide.

Cable & Wireless' investment in the transatlantic system is (pound)300 million with additional project
financing from Alcatel.

A major US communications company has already signed a letter of intent to purchase one fiber pair,
representing a quarter of the new cable system's capacity. In addition, Cable & Wireless' dedicated
carrier and service provider channel, Partner Services, has non-disclosure agreements and ongoing
commercial negotiations with other potential purchasers.

"Cable & Wireless' role as the exclusive channel to market underlines the success of our division
dedicated to the service of our carriers and service provider customers," said Mike McTighe, CEO Global
Operations, Cable & Wireless. "The bandwidth that Apollo will provide reflects our phenomenal growth
in IP and data traffic and our continued commitment to becoming the leading global supplier of IP services
to business customers worldwide."

Apollo comprises two fully diverse submarine legs, four fibre pairs in each, capable of at least 3.2
terabits per second of traffic transmission on each leg - one third more capacity than other existing
transatlantic cable systems. The system will run for 13,000km under the Atlantic Ocean, linking Long
Island and New Jersey in the United States with Cornwall in the UK, and Brittany in France. Marine
operations are already underway.

The transatlantic system links directly with Cable & Wireless' seamless high capacity infrastructure in the
US and Europe, providing customers with onward connectivity to communications destinations far
beyond the landing points.

Advanced technologies

As the world's most advanced IP transatlantic cable system, Apollo can claim:

- Greater capacity: Apollo will be the first 80 wavelength

transatlantic system - which means Cable & Wireless can offer

customers lower unit cost.

- Greater resilience: Apollo is the first transatlantic system to

use Alcatel's enhanced cable protection design - which means it is

less prone to damage from external aggression, such as trawler

damage. The system echoes Gemini's dual leg architecture for extra

resilience.

- full flexibility: depending on the customers' voice, data or IP

requirements, Apollo can be configured either as a standard ring

protection architecture or fully meshed - which means the customer

can determine for themselves the level of protection they require,

up to the latest optical protection switching equipment.

Chart Comparing Apollo with other existing transatlantic cable systems. -0-


System Owner Terminal Technology Fiber Trans- T.Bit/s
Points Wavelength x Pairs Atlantic Per Leg
Line Speed Per Leg Legs
----------------------------------------------------------------------
Apollo Cable & UK - USA 80x10 4 2 3.20
Wireless France - USA
UK - France
Interlink
----------------------------------------------------------------------
Flag
Atlantic-1 Flag
Telecom UK\France 40 x 10 6 2 2.40
- USA (Single
US Landing)
----------------------------------------------------------------------
360Atlantic 360
Networks UK-Canada 48 x 10 4 2 1.92
(Worldwide (Link to USA)
Fiber)
----------------------------------------------------------------------
Yellow Level 3;
Viatel; UK -USA 47 x 10 4 1 1.88
Global
Crossing
----------------------------------------------------------------------


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.

About Cable & Wireless

Cable & Wireless is a major global telecommunications business
with revenue of over US$14 billion in the year to 31 March 2000 and
customers in 70 countries. Its operations around the world offer a
full range of telecommunications services. Cable & Wireless' focus for
future growth is on IP (Internet Protocol) and data services and
solutions for business customers. It is developing advanced IP
networks and value-added services in the US, Europe and the
Asia-Pacific region in support of this strategy. With the capability
of its global IP infrastructure and its strength in key markets, Cable
& Wireless holds a unique position in terms of global coverage and
services to business customers. For more information about Cable &
Wireless, go to www.cw.com.

Cable & Wireless and the Globe Device are registered trademarks of
Cable and Wireless plc.

About Alcatel

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

* Pioneer Annual Compound Rate (End 2000-End 2003) 118% Yankee
Annual Compound Rate (End 2000-End 2003) 77%
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