Teleglobe Announces Major North American Network Build-Out with $350 Million in Purchases Primarily from Williams Communications and Broadwing
Transactions Include $110 Million in Purchases of Teleglobe Network, Data and Hosting Services
RESTON, Va., June 8 /CNW/ - To accelerate the deployment of its broadband network in North America and offer customers seamless global connectivity, Teleglobe (NYSE, TSE: BCE - news news), the e-World Communications Company, today announced up to US $350 million in purchases of wavelengths (lit fiber) primarily from Williams Communications (NYSE:WCG - news) and Broadwing Inc. (NYSE:BRW - news).
With these purchases and acquisition of capacity on the Flag Atlantic cable which is expected to be available later this year, Teleglobe will have a multiple 10 Gbps transcontinental backbone network, offering services at the highest speeds commercially available today. The new capacity, in combination with the deployment of Teleglobe's Multi-Protocol Label Switching (MPLS) backbone, differentiates Teleglobe as the first global Internet Service Provider (ISP) to offer seamless Internet Protocol Virtual Private Networks (IPVPN) bridging multiple autonomous systems. The company expects to finalize additional capacity acquisitions shortly. Additionally, under its agreement with Broadwing, Teleglobe has an option under certain circumstances to acquire up to eight strands of dark fiber on Broadwing's network.
As part of the transactions, Williams Communications and Broadwing will separately purchase a combined US $110 million of Teleglobe's network and eBusiness services over the next four years.
Additional terms of the transactions were not disclosed.
The agreements extend the reach of Teleglobe's network in the United States...
biz.yahoo.com |
