To: BuzzVA who wrote (36436 ) 7/20/1998 2:36:00 PM From: KittyCat Respond to of 41046
WorldCom's Pan-European Network Opens for Business By Kristi Essick PARIS - WorldCom today launched its much-hyped pan-European network, which will link companies in business centers around Europe with their North American counterparts via a gigantic fiber loop. WorldCom, which began building the European fiber-optic network about four years ago, today launched services on the network for the first time. The 2,000-mile long network links together existing WorldCom local networks in London, Amsterdam, Brussels, Paris and Frankfurt, WorldCom said in a statement. The pan-European network will also connect, via the Gemini transatlantic undersea cable, to WorldCom's local and long-distance networks in the U.S., which currently serve 27,000 office buildings. The European leg of the network will connect about 4,000 office buildings in the cities it ties together. WorldCom plans to offer high-bandwidth, value-added voice, data and Internet services to corporate customers using the new network. Some of the services the company plans to offer include managed ATM (asynchronous transfer mode) services, video conferencing and private circuits, according to the statement. WorldCom is not the only telco eager to build up its own network in the recently deregulated European market. Competitors such as Energis and Colt Telecom Group are also racing to dig up the streets and lay fiber. WorldCom, like the other new entrants, wants to bypass incumbent operators by building its own local-loop networks, thereby exempting itself from paying expensive interconnect charges at a local level. In turn, WorldCom plans to pass on these cost savings to users, the company said. Of course, with networks only in certain places, WorldCom still has to pay incumbents to carry traffic where their networks don't reach. WorldCom's network could save a company a fair amount of money, if, for example, it wants to connect headquarters in London to a sister office in New York. But prices could rise if a company wants to connect offices that aren't in cities on WorldCom's new network loop, for example, two sites in the south of France to a head office in London, because WorldCom will have to pay interconnect fees in France. However, WorldCom is quickly adding new local networks and will add other cities to the pan-European network at a later date, the company has said. The telco currently is developing city-wide networks in Hamburg, DÂsseldorf, Rotterdam, Dublin and Zurich, but it has not yet announced plans to connect these cities to the pan-European network. When a call passes solely over WorldCom's European network, the company will charge a flat rate for most services, regardless of the distance traveled, the company said. A call from Frankfurt to London on a private circuit will cost the same as a call from London to Amsterdam, WorldCom said. This is because the company will be able to bypass "the arcane and arbitrary traditional methods of settling international telecoms pricing," according to the statement. WorldCom's new pan-European network is based on fiber-optic, SDH (synchronous digital hierarchy) loops that can support up to 40G bits of data or voice per second, the company said. In addition, the network will use wave division multiplexing and optical amplifiers to increase capacity in the future, WorldCom said. WorldCom detailed plans for its pan-European network in March of 1997 and said it would spend $200 million rolling out the project. Kristi Essick writes for the IDG News Service in Paris. idg.net