Level 3 to develop undesea fast Internet cable
OMAHA, Neb., April 23 (Reuters) - Level 3 Communications
Inc. <LVLT.O> 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. <TYC.N>, 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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