IMPSAT Fiber Networks Confirms That Deployment of Its Pan Regional Optic Fiber Network is On Schedule
BUENOS AIRES, Argentina--(BUSINESS WIRE)--April 28, 2000--
- The deployment of the Broadband Network during the first quarter progressed as planned
- The long-haul section between Buenos Aires and Rosario in Argentina has been completed and is expected to be in operation ahead of schedule
- Ducts have been installed along a high-mountain stretch in the Andes between Chile and Argentina of 228 kilometers, completing the most complex part of the planned construction
- As a result of the recently announced swap transactions with
Movicom/Bell South and the backhaul agreement with Global Crossing, the total projected reach of our Pan-Latin American Broadband network was extended to 4,562 route kilometers of ducts and 7,922 route kilometers of fiber.
IMPSAT Fiber Networks, Inc. ("IMPSAT" or the "Company")
(NASDAQ:IMPT), a leading provider of data transmission and private telecommunications network services in Latin America with an increasing emphasis on broadband transmission, confirms that the works related to its Broadband Network at the end of March 2000 were on schedule.
At March 31, 2000, the work completed on IMPSAT's Broadband Network was exceeding management's original projections. The timely advance in its installation of the originally planned network adds to a series of positive notes regarding the IMPSAT network, which started
with the news of the additional facilities obtained as a result of the agreements with Movicom/Bell South and Global Crossing announced recently. The Company believes that the development of the Broadband Network is progressing positively and, as previously announced, will be completed and operational by December 2000.
The progress in the deployment of IMPSAT's Broadband Network is depicted in the following table:
Total Projected
At December At March Total Extension Extension After
31, 1999 31, 2000 Original Project Agreements(1)
============ ============= ================ ================
Duct Fiber Duct Fiber Duct Fiber Duct Fiber
Route Route Route Route Route Route Route Route
Long-Haul Km. Km. Km. Km. Km. Km. Km. Km.
Argentina 498 87 1,180 595 1,800 1,800 1,800 3,100
Brazil 3 0 206 0 1,500 1,500 1,500 1,500
Colombia 0 698 0 1,406 0 2,000 0 2,000
Chile 65 0 228 18 332 332 332 332
Total 566 785 1,614 2,019 3,632 5,632 3,632 6,932
Metro-
Backbones
Argentina 60 72 116 85 150 180 250 310
Brazil 89 65 177 98 500 500 680 680
Total metro
Backbones 149 137 293 183 650 680 930 990
TOTAL 715 922 1,907 2,202 4,282 6,312 4,562 7,922
% of
progress(2)16.7% 14.6% 44.5% 34.9%
*T
(1) Includes fiber and ducts resulting from the Movicom/Bell South
-capacity swap- and Global Crossing -backhauls- agreements
(2) Calculated as a percentage of the original project extension
During the three months ended March 31, 2000, IMPSAT constructed a total of 1,192 new route kilometers of ducts and installed a total of 1,280 new route kilometers of fiber.
Mr. Ricardo Verdaguer, IMPSAT's Chief Executive Officer, expressed his satisfaction with the timely development of the Company's Broadband infrastructure: "The deployment of the Broadband Network is a complex process involving several outside parties. We have made
every endeavor to assure the successful development of the project and are naturally pleased to see it well under way. The Broadband Network is the cornerstone of IMPSAT's pan Regional strategy and providing for its expansion and completion is tantamount to the realization of our
corporate vision. We are extremely pleased with our progress to date, especially given the fact that the most complex and difficult work involved is the laying of ducts which is well under way."
The section between Buenos Aires and Rosario has been completed and is expected to be ready for operation in mid-year, sooner than expected. Rosario is an important industrial center with 1.5 million inhabitants. Also worth to note, the most complex sections of the whole works, a high mountain ridge stretch of approximately 228 km of
ducts across the Andes, was finalized during the quarter; the crossing of the Andes utilizes the latest technology (non-zero dispersion fiber) and makes us the first-mover to cross such terrain.
As recently announced, the total reach of the projected Broadband Network was significantly enlarged as a result of the capacity swap agreements signed with Movicom/Bell South in Argentina and backhaul agreements signed with Global Crossing in Brazil. The Movicom/Bell South framework agreement entails the increase of the Argentine
network by 1,430 route kilometers of ducts and fiber at no additional cost, while through our agreement with Global Crossing the extension of the metrobackbone in Brazil was increased by 180 route kilometers of fiber and ducts. The two transactions will be completed by the end
of the year.
IMPSAT Fiber Networks, Inc. is a leading provider of Internet and private network integrated data and voice telecommunications services in Latin America. IMPSAT is building an extensive pan-Latin American high capacity Broadband network using advanced technologies, including
IP/ATM switching, DWDM, and non-zero dispersion fiber optics. IMPSAT provides services to more than 1,900 national and multinational companies, government entities and wholesale services to carriers, ISPs and other service providers throughout the region. The Company currently has operations in Argentina, Colombia, Venezuela, Ecuador,
Mexico, Brazil , the United States, Chile and Peru. |
