FTHL,don't know why it is down:
FLAG Telecom Awarded National License in Italy
Further Extension of FLAG Atlantic-1 and FLAG Europe-Asia Into Southern Europe
LONDON, Jun 1, 2001 (BUSINESS WIRE) -- FLAG Telecom (Nasdaq: FTHL chart, msgs; LSE:FTL), a leading global network services provider and independent carriers' carrier, announced today that its affiliate - FLAG Telecom Servizi Italia SpA - has been granted a license to establish and operate a nationwide telecommunications network in Italy.
The license allows FLAG to expand its seamless IP and optical fibre network across the Italian peninsula beyond its current presence in Palermo and to offer enhanced broadband Internet services into Italy across FLAG Telecom's global infrastructure.
Ed McCormack, Chief Operating Officer of FLAG Telecom noted: "Italy has always played an important role in FLAG Telecom's development as exemplified in our pioneering cable, FLAG Europe-Asia (FEA). Indeed, being awarded this license increases our capacity and will enhance our readiness to meet customers' demand for scaleable broadband services delivered on a truly worldwide end-to-end basis from a single provider. Whether European or global bandwidth, Internet connectivity or bundled business solutions, FLAG Telecom provides broadband solutions tailored to customers' capacity, speed and geographic needs."
Speaking further about the new network, McCormack added: "Given the increasing fill rate on the Western end of our FEA cable we faced potential capacity constraints and the expense associated with upgrading it. Rather than upgrade that part of the FEA we concluded that the use of an alternative terrestrial route provided many commercial advantages, including lower costs and immediacy of service. We are delighted to now be serving customers off our FEA cable with capacity through Europe and onward to the United States."
Antonio Cardone, Managing Director of FLAG Telecom Servizi Italia SpA remarked: "FLAG Telecom's Pan-European network will drive our regional expansion, giving us a dynamic presence in one of Europe's largest and fastest growing markets. This will allow us to provide further global reach to our customer base by connecting our two existing cables, (FEA) and FLAG Atlantic-1 (FA-1)."
The FLAG European network is expected to begin serving London, Paris, Amsterdam, Frankfurt and Dusseldorf early in the second half of the year, with expansion to other European cities planned by the end of the year. It will connect seamlessly to the FA-1 system via London enabling Trans-Atlantic traffic to be taken into the heart of Europe. FA-1 is expected to be ready for service as a fully restored loop early in the second half of this year.
About FLAG Telecom
FLAG Telecom is a leading global network services provider and independent carriers' carrier providing an innovative range of products and services to the international carrier community, ASPs and ISPs across an international network platform designed to support the next generation of IP over optical data networks. The FLAG Europe-Asia cable stretches from the UK to Japan and entered commercial service in November 1997. FLAG Atlantic-1, the world's first transoceanic terabit cable system linking London and Paris to New York, is currently at an advanced stage of construction and is scheduled to enter service as a fully restored loop system in early H2 2001. FLAG North Asian Loop is a multi-terabit intra-Asia system scheduled to enter service in Q2 2001. The FLAG Pacific-1 cable is expected to enter service in Q2 2002. Leveraging this unique network FLAG Telecom's rapidly growing Network Services business markets a range of managed bandwidth and value added services targeted at carriers, ISPs, and ASPs worldwide. Principal shareholders are: Verizon Communications (NYSE: VZ chart, msgs) (USA) and Dallah Al Barakah Group (Saudi Arabia). For further information, visit www.flagtelecom.com
For further information, contact: Media: Ben Banta, Corporate Communications Tel: +44 20 7478 9745 E-mail: bbanta@flagtelecom.com
Investors: Catherine Nash, Director, Investor Relations Tel: +44 (0) 20 7317 0894 E-mail: cnash@flagtelecom.com
Statements contained in this Press Release, which are not historical facts may be forward-looking statements, as the term is defined in the Private Securities Litigation Reform Act of 1995. To identify forward-looking statements, look for words like "believes", "expects", "may", "will", "should", "seeks", "intends", "plans", "projects", "estimates" or "anticipates" and similar words and phrases. Discussions of strategy, plans or intentions often contain forward-looking statements. These, and all forward-looking statements, necessarily depend on assumptions, data or methods that may be incorrect or imprecise. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, those discussed in documents the Company files from time to time with the Securities and Exchange Commission, including the annual report on Form 10-K for the fiscal year ended December 31 2000. The Company cautions readers not to rely on forward-looking statements. The Company disclaims any intent or obligation to update these forward-looking statements.
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