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April 23, 1999 07:12
Level 3 to develop undesea fast Internet cable
OMAHA, Neb., April 23 (Reuters) - Level 3 Communications Inc. on Friday said it would plans to install a transatlantic high-speed, large-capacity, Internet cable system at a cost of $600 million to $800 million.
The company said Tyco Submarine Systems Ltd., a subsidiary of Tyco International Ltd. , would design and develop the high-capacity undersea cable system. At 1.28 terabits per second, the system could send the entire contents of the U.S. Library of Congress across the Atlantic in less than 16 seconds.
The system, which is expected to be in service by September 2000, would link Level 3's high speed and capacity networks for Internet transmissions in the United States with its European network, the company said.
The cable would run from New York's Long Island to North Cornwall, in the United Kingdom. Tyco has already optioned to construct the system, the company said.
In the United States, Level 3 is building a nearly 16,000 mile long distance, network that would connect its 50 local U.S. city networks. Level 3 is also building a 3,500 mile intercity network that would connect 15 local city networks in Europe. A total of 21 city networks are planned for financial centers across Europe and the Pacific Rim.
"By significantly lowering our cost base between any city in Europe and any city in the U.S., we will be able to offer very aggressive price reductions over time, comparable to the reductions we expect to implement on our terrestrial networks," Colin Williams, president of Level 3 International, said in a statement. "We intend to expand the market for capacity by continually seeking ways to reduce the underlying costs of capacity and passing those cost savings on to our customers."
The total cost would depend on how the cable is upgraded over time, the company said. Level 3 said it already has funds for most of the project, but may require additional funding, depending on the cable's ultimate structure, pre-construction sales and ownership.
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