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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: pass pass who wrote (1508)	8/17/1999 8:47:00 AM
From: quidditch	Read Replies (1) \| Respond to of 15615

Tuesday August 17, 7:54 am Eastern Time Global Crossing inks $700 mln deal with Alcatel NEW YORK, Aug 17 (Reuters) - Bermuda-based Global Crossing Ltd. (Nasdaq:GBLX - news) said Tuesday it has chosen French telecom company Alcatel (NYSE:ALA - news) to build a South American portion of Global's vast fiber optic network in a $700 million deal. The company said Alcatel will design, manufacture and install the South American Crossing system, part of Global's system that will span five continents and allow for data, voice, video and Internet transmissions. Global said it will have an option to provide marine operations support to Alcatel and has received a guarantee of $100 million in contracts over the next five years. The amount includes any subcontracting work awarded during construction. Global said the Alcatel deal replaces another contract which had earlier been awarded to build the undersea system. Company officials were not immediately available to provide further detail. Global added that Argentine telecommunications company IMPSAT has agreed to provide infrastructure for portions of the South American Crossing system. IMPSAT will also buy a minimum of $46 million in capacity on the Global Crossing Network and enter into a nonexclusive co-marketing deal that pairs IMPSAT's Pan American distribution network with the Global Crossing Network. Global said Lucent Technologies Inc. (NYSE:LU - news) has been selected to supply its optical networking equipment for the terrestrial portion of the project. ''These new partnerships keep our South American Crossing system on schedule toward its goal of giving businesses and consumers in Latin America's largest cities assured access to worldwide broadband communications,'' said Global Crossing's Chief Executive Officer Bob Annunziata in a statement. Shares of Global Crossing closed at 32-5/16 on the Nasdaq on Monday, below their one-year high of 64-1/4 but well above their one-year low of eight. Copyright © 1999 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or