OT: Interesting related story w/ TCM & Flag re: transpacific cable:
biz.yahoo.com
Tuesday April 17, 9:22 am Eastern Time
Press Release
SOURCE: TyCom Ltd.
TyCom and FLAG to Jointly Develop Transpacific Network
TyCom Awarded Supply Contract for Network Valued at US$1.7-billion and Will Acquire Four Fiber Pairs to Complete TyCom Transpacific System
Company to Receive Multi-year Seahorse Marine Maintenance Contract to Support FLAG Telecom's Atlantic and Pacific Systems
PEMBROKE, Bermuda, April 17 /PRNewswire/ -- TyCom Ltd. (NYSE: TCM; BSX: TCM) today announced that it has agreed, in principle, with FLAG Telecom (Nasdaq: FTHL; LSE: FTL) for the two companies to join their previously announced transpacific networks in a joint development arrangement. TyCom will receive contracts to build the complete transpacific ring, part of which will become the FLAG Pacific-1 network, for US$1.7 billion, which includes all undersea cable, electronics and cable stations. TyCom will purchase from FLAG Telecom four fiber pairs on that ring to create the TyCom Transpacific portion of the TyCom Global Network (TGN). The ready for service (RFS) date for the system is expected to be achieved in the second calendar quarter of 2002.
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TyCom, through its Seahorse program, will also receive a contract to provide wet maintenance on both FLAG Telecom's transpacific network, as well as FLAG Telecom's new transatlantic system, which is scheduled to go into service in the second quarter of this year. Seahorse is TyCom's innovative marine maintenance service program that provides responsive support to network owners through a dedicated fleet of cable ships strategically stationed around the world. This system is the fourth to be covered by TyCom's Seahorse program.
``These transactions with FLAG Telecom will take our solid working relationship to the next level. As a leader in the undersea network industry, TyCom is pleased to have been selected to build FLAG Telecom's transpacific system, as well as provide maintenance services for both their transatlantic and transpacific systems. Both TyCom and FLAG Telecom have a number of common interests and this joint development is an excellent way to achieve our mutual goals in the Pacific,'' said Neil Garvey, President and CEO of TyCom.
``FLAG Telecom is building one of the largest and most extensive global IP networks, and implementing a high-capacity transpacific system is a key element in our worldwide plans,'' said Andres Bande, Chief Executive Officer of FLAG Telecom. ``This arrangement is consistent with our strategy of minimizing capital at risk and reducing cash outlay in developing our global network. TyCom is an acknowledged technology leader in the undersea industry with a proven track record for on-time development, and we welcome the opportunity to work on this project together.''
The system to be built will be approximately 24,100 kilometers long and will connect Japan to the West Coast of the United States, then return to Asia via Guam and Hawaii. The 8-fiber pair architecture, using both 64- and 96- channel DWDM transmission technology, will provide a state-of-the-art system having a maximum capacity up to 7.68 terabits/second. TyCom has previously announced its intention to connect the TyCom Global Network (TGN) to other Asian countries including South Korea, Philippines, China, Singapore, Taiwan and Hong Kong, and to link all pan-Asian and transpacific segments into the TGN system.
TyCom's deployment of Phase 1 of the TGN system is proceeding on or ahead of schedule in all parts of the world. The transpacific portion is expected to be ready for service in the second calendar quarter of 2002. TyCom Transatlantic, connecting New York and London, is scheduled to go into service in July of this year.
ABOUT THE TYCOM GLOBAL NETWORK
The TyCom Global Network is planned to be the world's most extensive and technologically advanced undersea fiber optic network. Phase 1 of the TyCom Global Network is designed to offer multi-terabit capacity upgradeable to a maximum of 7.68 terabits per second, span more than 70,000 undersea kilometers and connect 30 major cities around the globe. TyCom plans to design and manufacture the undersea cable, optical amplifiers and terminal equipment, and plans to design, build and equip the global and regional network management centers, TelExchange centers and cable stations along the route. TyCom's own fleet of cable ships, one of the world's largest, will install and maintain the system.
ABOUT TYCOM LTD.
TyCom Ltd. (NYSE: TCM; BSX: TCM), with 2000 revenues of $2.54 billion, is one of the world's largest providers of advanced broadband communications capacity, systems and services. TyCom is a leading fully integrated supplier of transoceanic fiber optic systems, is the recognized world leader in undersea technology development and application, and operates one of the world's largest fleets of cable ships. To meet growing demand, the Company is also deploying and selling capacity on the TyCom Global Network. TyCom's parent company is Tyco International Ltd. (NYSE: TYC; LSE: TYI; BSX: TYC). For more information on TyCom, visit www.tycomltd.com.
ABOUT TYCO INTERNATIONAL LTD.
Tyco International Ltd. (NYSE: TYC; LSE: TYI; BSX: TYC) is a diversified manufacturing and service company. Tyco is the world's largest manufacturer and servicer of electrical and electronic components; the world's largest designer, manufacturer, installer and servicer of undersea telecommunications systems; the world's largest manufacturer, installer and provider of fire protection systems and electronic security services, and the world's largest manufacturer of flow control valves. Tyco also holds strong leadership positions in disposable medical products, diagnostic imaging, bulk pharmaceuticals, wound closure, plastics and adhesives. Tyco operates in more than 100 countries and had fiscal 2000 sales of $28.9 billion.
FORWARD LOOKING STATEMENT
This release contains ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained in the forward-looking statements.
The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: the timing of construction and the successful operation of the TyCom Global Network, changes in telecommunications technology, changes in demand for bandwidth capacity, receipt of necessary licenses and regulatory approvals, competitive factors in the undersea fiber optic cable industry and in the telecommunications industry generally, overall economic and business conditions, the buy-back of TyCom common shares, changes in the regulatory environment, the outcome of litigation, risks associated with conducting business in international markets, and other risks described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2000, filed with the SEC. TyCom is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE: TyCom Ltd. |
