PSINet Acquires Fiber Capacity On Transpacific Cable System
Business Wire - August 24, 1998 09:21
HERNDON, Va.--(BUSINESS WIRE)--Aug. 24, 1998--
World's Largest Independent Commercial ISP Acquires Links Between Mainland U.S. and Japan
PSINet Inc. (NASDAQ: PSIX), the first and largest independent commercial Internet service provider (ISP), today announced that it has acquired capacity
equivalent to six DS-3s on the North Pacific Cable (NPC) undersea fiber-optic system that connects the continental United States with the Asia/Pacific region.
A DS-3 is a standard bandwidth value representing data transmission speeds up to 45 megabits per second (Mbps). The NPC system, operational since 1991, is
the shortest and the first direct digital fiber-optic link between the United States and Japan. Three of PSINet's DS-3s, linking the U.S. to Japan, are available
immediately. The remaining three DS-3s will be available for use when required by PSINet.
PSINet has now linked its new transpacific capacity with recently activated transcontinental U.S. and transatlantic (U.S. to U.K.) fiber. As a result, PSINet has
become the first ISP to own and operate a continuous high-speed data network linking the United States to the Asia/Pacific region and Europe. The new transpacific
capacity has been interconnected with PSINet's existing U.S. infrastructure at PSINet's Portland, Ore. point of presence (PoP) and with PSINet's Japan network at
its Tokyo PoP.
"Growth in PSINet's Japanese operations, plus traffic to come from other expansion in the Asia/Pacific region is greatly facilitated by a gateway to the Pacific. This
purchase assures our ability to capitalize on those opportunities and complements our recent fiber and business acquisitions in Asia, North America and Europe,
accelerating our strategy to become the premier data communications carrier for the 21st century," said William L. Schrader, PSINet's chairman, president and chief
executive officer.
PSINet acquired this new transpacific capacity through agreements with Pacific Telecom Cable Inc. in the United States and International Digital Communications
Inc. (IDC) in Japan. PSINet holds the capacity through a combination of indefeasible rights of use (IRUs) and long-term leases. The IRUs give PSINet the right to
use the fiber for the remaining service life of the NPC system, which is approximately 18 years.
Fiber purchases are critical steps in PSINet's strategy to own its bandwidth and PoP switching facilities throughout the globe. This purchase is one of several recent
strategic fiber acquisitions including: 10,000 equivalent route miles of OC-48 capacity across the U.S.; transatlantic fiber capacity from the U.S. to the U.K. and
mainland Europe; 18 dark fiber strands linking New York/Washington and major metropolitan areas in between; and the Japan/U.S. Cable Network investment.
These agreements allow PSINet to replace more expensive leased circuits thereby increasing performance, reliability and cost-effectiveness for demanding
multimedia Internet services required by PSINet's business customers.
Headquartered in Herndon, Va., PSINet is global facilities-based Internet Protocol (IP) data communications carrier focused on the business marketplace. As the
first and largest independent commercial Internet service provider in the world, PSINet offers a broad set of high-speed corporate LAN connectivity services
supporting managed security and guaranteed Internet, intranet, electronic commerce, Web hosting services, and services for other carriers and ISPs. PSINet
operates an international state-of-the-art frame relay-based, IP-optimized network connecting over 400 points of presence extending to 12 countries. PSINet has
subsidiaries in Belgium, Canada, France, Germany, Hong Kong, Italy, Japan, Korea, the Netherlands, Switzerland, the United States, and the United Kingdom.
General PSINet information can be obtained by e-mail at info@psi.com, or by accessing the Web site at psinet.com.
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