FLAG ATLANTIC-1 AWARDS ALCATEL CONTRACT TO PROVIDE DWDM TERRESTRIAL NETWORK PARIS, May 25, 2000 - FLAG Atlantic Limited, a 50:50 joint venture between FLAG Telecom and Global TeleSystems, Inc, has awarded Alcatel a multi-million dollar contract to provide the FLAG Atlantic-1 (FA-1) terrestrial network with synchronous digital hierarchy (SDH) and dense wavelength division multiplexing (DWDM) technology and equipment.
FA-1's terrestrial network infrastructure, with co-location facilities in New York, London and Paris, will provide the city links for the FA-1 transatlantic multi-terabit dual submarine cable, which will land at Long Island (USA), Cornwall (UK) and Brittany (France). The FA-1 system will be ready to provide unprotected services by the end of March 2001 and the full system is scheduled to provide fully redundant services by the end of June 2001.
As part of this agreement, Alcatel will supply and install DWDM equipment - that has a capability of achieving capacity of 80 channels per fiber pair at 10 Gbps per channel. Alcatel will also supply 10 Gbps SDH equipment to FA-1 and will provide a network management system with associated data communications and synchronization networks, plus a revolutionary All-Optical Protection Switching System (OPS). This will be the world's first OPS and will selectively protect the network, channel by channel, from degradation or failures by automatically re-routing traffic.
Ed McCormack, Director of FLAG Atlantic Limited and COO, FLAG Telecom, said: "Our ongoing experience and working relationship with Alcatel gives us confidence that they will be able to meet our exacting requirements for the terrestrial portion of the overall network. This latest contract is within the $1.1 billion project cost already committed for FA-1. The award maintains our schedule, which is to have the first leg of the cable system in service in ten months time. FA-1 is designed to provide a competitive, highly reliable and resilient service to our customers and their mission-critical applications. The increase in take up of the Internet in the Middle East and Asia and explosive growth of Internet content in the US continues to drive traffic levels to new heights."
"We chose Alcatel because of their proven ability to deliver turnkey, integrated and state-of-the-art solutions," said Steven Andrews, Director of FLAG Atlantic Limited and President of GTS's TransOceanic Services Division. "Alcatel's solutions create a natural synergy with the technology currently being deployed in the FA-1 submarine network. It also provides the seamless connectivity, interoperability and transparency we need over our network infrastructure on both sides of the Atlantic."
"As the world leader in optics we are committed to offering our customers the technology and service they need to compete on a world-wide basis," said Christian Reinaudo, President of Alcatel Optics. "Having already provided the FA-1 subsea segment, we were well placed to supply the integrated terrestrial portion of the network - showing the strength of our combined offer."
About Alcatel In November 1999, RHK, a leading telecommunications analyst firm, said that Alcatel holds a 21% share - the number one position - of the world's total transport market, which comprises submarine and terrestrial transmission systems. RHK noted that Alcatel's market-leading 37% market share in the submarine networks segment helped secure the top position in the total transport market. In addition, RHK found that Alcatel commands a 37% share of the digital cross-connect systems (DCS) segment. Cross-connect systems contain the enabling technology for operators to offer high bandwidth services. Alcatel is also cited as the global leader in terms of DWDM market share for the global market encompassing both terrestrial and submarine applications. Alcatel builds next generation networks, delivering integrated end-to-end voice and data networking solutions to established and new carriers, as well as enterprises and consumers worldwide. With 120,000 employees and sales of EURO 23 billion in 1999, Alcatel operates in more than 130 countries.
About FLAG Telecom FLAG Telecom is a leading independent global carriers' carrier providing an innovative range of products and services to the international carrier community, ASPs and ISPs across an international network platform designed to support the next generation of IP over optical data networks. The FLAG Europe-Asia cable stretches from the UK to Japan and entered commercial service in November 1997. FLAG Atlantic-1, the world's first transoceanic terabit cable system, is currently under construction and is scheduled to enter service in Q1 2001. The FLAG Pacific-1 cable is the longest DWDM system announced to date and is expected to enter service in early 2002.
Telecommunications is one of the fastest growing industries and FLAG Telecom is well positioned to be a world leader in a critical segment of this market. By 2002 FLAG Telecom's technologically advanced cable network is expected to stretch over 64,500 route km from New York City across the Atlantic to London, Paris, and all major European business centers; through the Mediterranean to the Middle East, Africa and onto Asia. From Tokyo it will run across the Pacific to the Internet hub cities of Vancouver, Seattle, San Francisco and Los Angeles. www.flagtelecom.com
About GTS Global TeleSystems is the leading provider of e*Business and borderless broadband services across Europe, serving businesses and carriers with a range of broadband, hosting, Internet/IP and voice services. As an industry leader in Europe, the company has the largest cross-border fiber optic network; the largest Tier-1 backbone (GTS Ebone); the most widely deployed pan-European e*Business sales and services staff; and the largest pan-European customer base. GTS's first and most extensive trans-European broadband fiber network includes on-net points of presence in 32 European cities (with plans for 50 cities) and stretches across 17,500 route kilometers (with plans for 25,000 route kilometers) with five city enterprise networks (CENs), providing intra-city bandwidth (with plans for a total of 16). GTS has also announced plans to build an advanced trans-Atlantic dual-cable system in a joint venture with FLAG Telecom. GTS has corporate offices in the metropolitan Washington D.C. area and European headquarters in London, as well as sales and support offices in 19 countries. For further information, visit GTS's website at www.gtsgroup.com.
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