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Asia Global Crossing and DACOM Corporation Form Joint Venture Called DACOM Crossing to Bring Unprecedented Connectivity to Korea
DACOM Crossing will connect Korea with the rest of Asia and the world via the Asia Global Crossing and Global Crossing networks
DACOM Crossing to provide terrestrial link between Seoul and Asia Global Crossing's pan-Asian East Asia Crossing
Brings increased competition to the international subsea capacity supply
Seoul, Korea – February 27, 2001 – Asia Global Crossing and DACOM Corporation, Korea's leading provider of international IP communications, announced today that they have formed a 49:51 joint venture called DACOM Crossing to enhance Korea's pan-Asian and pan-world broadband connectivity.
Korea has the highest Internet user penetration in Asia and the highest number of broadband users. To meet anticipated increases in demand, DACOM Crossing will provide terrestrial backhaul capacity to carriers, Internet service providers, and multinational corporations between Seoul and Asia Global Crossing's East Asia Crossing, the first truly pan-Asian network, which is expected to land in Korea during the second quarter.
Upon completion, East Asia Crossing will connect Korea, Japan, Hong Kong, Taiwan, Singapore, the Philippines, Malaysia, and, as regulations permit, China, bringing Korea unprecedented pan-Asian connectivity and increasing the capacity into the country by 25 times. Since East Asia Crossing is part of the Global Crossing Network, Internet users in Korea will also have seamless access to more than 200 major business centers worldwide.
By partnering with Asia Global Crossing for its international telecommunications needs, DACOM expects to realize about 5 billion Won in savings annually.
DACOM Crossing will offer broadband capacity in the form of IRUs as well as international private line circuits in units ranging from STM-1s (155Mbps) to wavelengths (10Gbps), choices previously not available in Korea. In addition, through DACOM Crossing, customers in Korea for the first time will be able to buy city-to-city not just shore-to-shore connectivity on a single network.
The authorized capital for DACOM Crossing is expected to be 100 billion Won (about US$80 million).
"In a market that has the highest Internet user penetration in Asia, it is essential for Asia Global Crossing to partner with an established leader like DACOM that can help us strengthen our first-mover advantage and fulfill our vision of a city-to-city network," said John Legere, president and chief executive officer of Asia Global Crossing, "Businesses in Korea will benefit from the unprecedented capacity and increased competition DACOM Crossing will bring."
"As we approach the information technology era, with increasing demand for Internet and international communication, DACOM Crossing will play an important role in the future high-speed global telecommunication market," said Chung Kyu-Suk, Chief Executive Officer of DACOM.
About DACOM Corporation
DACOM was founded in 1982 as the first information and communications company in the nation with the goal of leading the transition towards information society. For the last 18 years, DACOM has played a central role in telecommunications development as a pioneer in the nation's information and communications industry. DACOM, which started with an initial capital of KRW5.9 billion and 108 employees, has recorded tremendous growth; in 2000, the company generated sales of KRW999.0 billion with 2,930 employees.
DACOM has led the development of the nation's telecommunications industry. Chollian, DACOM's online service, is the largest in the country with four million paying subscribers. DACOM also offers international and domestic long-distance telephone service, electronic commerce, Internet and various total solution services for corporate customers.
About Asia Global Crossing
Asia Global Crossing (NASDAQ: AGCX), a public company whose largest shareholders include Global Crossing (NYSE: GX), Softbank (Tokyo Stock Exchange: 9984), and Microsoft (Nasdaq: MSFT), provides the Asia Pacific region with a full range of integrated telecommunications and IP services. Through a combination of undersea cables, terrestrial networks, city fiber rings and complex web hosting data centers, Asia Global Crossing is building one of the first truly pan-Asian networks, which, in combination with the worldwide Global Crossing Network, will provide the Asia Pacific region with seamless access to major business centers worldwide. As part of its strategy to provide city-to-city connectivity, Asia Global Crossing partners with leading companies in each country it connects to provide backhaul networks.
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Statements made in this press release that state the Company's or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to complete systems within currently estimated time frames and budgets; the ability to compete effectively in a rapidly evolving and price competitive marketplace; changes in the nature of telecommunications regulation in the United States, Asia, and other countries and regions; changes in business strategy; the successful integration of newly-acquired businesses; the impact of technological change; and other risks referenced from time to time in the Company's filings with the Securities and Exchange Commission. One is cautioned not to put undue reliance on such forward-looking statements, which speak only as of the date of this press release. Asia Global Crossing expressly disclaims any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise. |
