Qwest and Global Crossing to Swap Transatlantic High Capacity Fiber Between U.S. Cities and Europe
DENVER--Qwest Communications International Inc. (NASDAQ:QWST) and Global Crossing Ltd. today announced an agreement to exchange capacity between Europe and the United States utilizing both companies' state-of-the-art networks -- Qwest's Macro Capacity(SM) Fiber Network and Global Crossing's Atlantic Crossing ("AC-1") subsea fiber optics cable system.
The agreement also provides for Qwest to obtain capacity through Global Crossing's planned Pacific Crossing subsea cable system ("PC-1"), linking the U.S. and Asia.
Atlantic Crossing connects the United Kingdom, Germany, and the Netherlands with a 14,000 km high-capacity four fiber self-healing Synchronous Digital Hierarchy ring network that is the most advanced undersea telecommunications system ever constructed, providing connectivity to major cities on both continents. Qwest's 16,285 mile nationwide fiber optic network will serve over 125 U.S. cities when completed in mid-1999.
Carriers will be able to purchase capacity between Europe and all major U.S. cities using these two networks. As a result of the swap, Qwest has received four STM1s (an STM1 is the European equivalent of an OC3 SONET circuit -- 155 mbps) on the Atlantic Crossing system.
The four STM1s connect U.S. cities and the United Kingdom, Germany and the Netherlands, utilizing Global Crossing's transatlantic subsea cable system capacity. Global Crossing will receive capacity between U.S. cities on the Qwest Macro Capacity Fiber Network.
"Qwest continues its expansion into the fast growing European data market. Combined with our acquisition of EUnet spanning thirteen European countries, this capacity swap will bring technologically superior network services to the two fastest growing Internet and data markets -- North America and Europe," said Joseph P. Nacchio, president and CEO at Qwest.
"This swap agreement will provide customers utilizing our Atlantic Crossing subsea cable system connectivity to major U.S. cities. It also marks an important expansion of Global Crossing's capabilities to meet our customers' growing needs," said John M. Scanlon, Global Crossing's chief executive officer.
The Qwest Macro Capacity Fiber Network
Qwest's planned domestic 16,285 mile network will serve over 125 cities, which represent approximately 80 percent of the data and voice traffic originating in the United States, upon its scheduled completion in the second quarter of 1999.
Currently, 4,850 miles are activated from California to Ohio, from Dallas to Houston and from Phoenix to Austin. Qwest is also extending its network 1,400 miles into Mexico with completion slated for late third quarter 1998.
The Qwest Macro Capacity Fiber network is designed with a highly reliable and secure bi-directional, line switching OC-192 SONET ring architecture. Upon completion, the network will offer a self-healing system that provides the ultimate security and reliability by allowing instantaneous rerouting in the event of a fiber cut.
Atlantic Crossing
Atlantic Crossing (AC-1) is a high-capacity four fiber self-healing Synchronous Digital Hierarchy (SDH) ring network connecting the United States with the United Kingdom, Germany and the Netherlands. The 14,000 km undersea fiber-optic system combines state-of-the-art Wavelength Division Multiplexing (WDM) and Erbium Doped Fiber Amplifier technology.
AC-1 has been initially provisioned to provide 40 gigabits of bi-directional transport capacity shared over four fiber pairs. The first phase, which will provide connectivity between the U.S. and the UK, will be completed in May 1998; with phase two, which will provide connectivity among the U.S., the UK and Germany, to be completed in November 1998. AC-1 will be the most advanced undersea telecommunications systems ever developed.
About Global Crossing
Global Crossing is the leading independent provider of undersea fiber optic telecommunications systems. The Company develops, owns and operates state-of-the-art telecommunications cable networks to help satisfy the explosive demand for high quality, reliable undersea transmission capacity.
Global Crossing is a "carrier's carrier," selling capacity on demand to carrier customers, thereby allowing them to defer capital spending until capacity is needed. Global Crossing also meets the needs of its customers by offering cost effective city-to-city connectivity, with the reach of its city-to-city options continuing to expand.
In addition to Atlantic Crossing, Global Crossing has under development three other major subsea cable systems: Pacific Crossing (PC-1), a 20,000 km four pair self-healing ring that will connect the U.S. to Japan; Mid-Atlantic Crossing (MAC), a two fiber pair self-healing ring that will connect New York, Bermuda, St. Croix in the U.S. Virgin Islands and Florida; and Pan American Crossing (PAC), which will link California, Mexico and Panama. Further information is available at www.globalcrossing.bm.
About Qwest
Qwest Communications International Inc. (NASDAQ:QWST) is a multimedia communications company building a high-capacity, fiber optic network for the 21st century. With its cutting-edge technology, Qwest will deliver high-quality data, video and voice connectivity securely and reliably to businesses, consumers and other communications service providers. Further information is available at www.qwest.net.
This release may contain forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by Qwest with the SEC, specifically the most recent reports on Form 10-Q, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including potential fluctuations in quarterly results, dependence on new product development, rapid technological and market change, failure to complete the network on schedule, volatility of stock price, financial risk management and future growth subject to risks.
Note to Editors: The Qwest logo is a registered trademark of Qwest Communications International Inc. in the U.S. and certain other countries.
CONTACT: Qwest Communications
Diane Reberger, 303/291-1662 (Corporate Contact)
dreberge@qwest.net
Lee Wolfe, 800/567-7296 (Investor Contact)
lwolfe@qwest.net
qwest.net
or
For Global Crossing
Anreder Hirschhorn Silver and Company
Steven S. Anreder, 212/421-4020
Anreder@AOL.com
or
For Qwest Communications
Alexander Communications (Media Contact)
Erin McKelvey, 303/615-5070
emckelvey@alexander-pr.com
alexander-pr.com
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