GLOBAL CROSSING TO ADD NEW 2.5
TERABIT-PER-SECOND ATLANTIC CABLE
PR Wire
March 24, 1999, 3:15 a.m. PT
Huge Capacity, $500-Million Cable Will Meet Soaring Demand in Europe
- The single new cable features the world's highest undersea capacity and
adds 25 times the capacity of all existing trans-Atlantic cables.
- Explosion of Internet use in Europe is expected to increase bandwidth
demand on the Atlantic route at about 80 percent per year.
- Service for added cable is scheduled to commence in the first quarter
of 2001.
- Atlantic Crossing 2 adds double-redundancy to Global Crossing's
existing undersea Atlantic Crossing 1.
HAMILTON, Bermuda, March 24 /PRNewswire/ -- Global Crossing Ltd.
(Nasdaq: GBLX), the owner and operator of the world's most advanced IP-based
fiber optic network, today announced Atlantic Crossing 2, a new undersea fiber
optic cable linking the major cities of Europe with the Americas and Asia.
This single new cable, at 2.5 terabits-per-second, represents an undersea
capacity increase of more than 25 times what is now available on the
trans-Atlantic route -- twice the capacity of any undersea cable previously
announced. Global Crossing is in the final stages of its selection of vendors
to manufacture and build the new system.
Atlantic Crossing 2 (AC-2) will be integrated with the two cables of
Atlantic Crossing 1 (AC-1), which are already in service. AC-2 will add a
third high-capacity cable across the Atlantic for the Global Crossing Network.
The new cable will cost approximately $500 million and is expected to be in
service in the first quarter of 2001. To ensure added robustness for its
trans-Atlantic cables, Global Crossing is planning landing sites for AC-2 that
are distanced from the landing sites of AC-1. Under active consideration for
the new cable are sites in the UK and Ireland for the eastern landing, and
sites in the U.S. along the New England or New York State shoreline.
"With this announcement and our planned merger with Frontier Corporation
in the U.S., we are moving to the highest capacity global fiber optic network
in the world," said Robert Annunziata, chief executive officer of Global
Crossing. "Analysts forecast bandwidth demand on the Atlantic route to grow
at about 80 percent per year, driven primarily by the explosion of Internet
use on both sides of the Atlantic. The addition of Frontier's fiber-optic
network in the United States and now the double-redundancy of our
trans-Atlantic cables ensure that national telephone providers, data-centric
multinational corporations, and Internet providers in the Americas and Asia
have guaranteed connectivity with the major cities of Europe. By using the
latest technology, we will be sure that no competitor will have a cost
advantage over us."
Growing global network
The addition of AC-2 ensures enough capacity to meet growing demand in the
high traffic Atlantic corridor, and adds redundancy and reliability to the
Global Crossing Network. Other Global Crossing areas of connectivity already
announced include:
-- Trans-Atlantic -- connecting the United States, the United Kingdom, the
Netherlands, and Germany (initial service in May of 1998; full ring
completion in February of 1999).
-- Mid-Atlantic -- connecting the Eastern U.S. with the Caribbean.
-- Central America and the Caribbean -- connecting the Western U.S.,
Mexico, Central America, the Caribbean, and South America.
-- Trans-Pacific -- connecting the Western United States and Japan.
-- Europe -- connecting with 24 of the top cities of Europe.
-- Japan -- connecting with the top three cities in Japan.
-- South America -- connecting the top cities of South America with the
rest of the Americas, Europe, and Asia.
-- United States -- connecting 120 cities after consummation of the merger
with Frontier.
"The new cable, at 2.5 terabits per second, will have more than twice the
capacity of any undersea cable announced or built in the world," added
Annunziata. "We have three goals uppermost in our minds in going ahead with
AC-2: First, Global Crossing is committed to remaining the low-cost provider
in global connectivity through the use of the most advanced technology
available. Second, given the rapid growth in demand among users in North
America and Europe, we are determined to be able to meet capacity needs not
just today but for the future. Finally, nothing is more critical to our
customers than reliability and we are proud to provide them with the first
double-redundant system across the Atlantic for their traffic needs."
About Global Crossing
Global Crossing is building and operating the world's most advanced global
IP-based fiber optic platform for data, voice, video and Internet
transmissions. The Global Crossing Network will span four continents and
address 80 percent of the world's international traffic. Global Crossing's
operations are headquartered in Hamilton, Bermuda, with holding company
headquarters in Los Angeles, and offices in New York City; Morristown, New
Jersey; San Francisco; Miami; London; Amsterdam; and Buenos Aires.
Statements made in this press release that state the Company's or
management intentions, beliefs, expectations or predictions for the future are
forward-looking statements. It is important to note that the Company's actual
results could differ materially from those projected in such forward-looking
statements. Information concerning factors that could cause actual results to
differ materially from those in the forward-looking statements is contained
from time to time in the Company's filings with the U.S. Securities and
Exchange Commission (SEC). Copies of these filings may be obtained by
contacting the Company or the SEC.
SOURCE Global Crossing Ltd.
-0- 03/24/99
/CONTACT: Investors/analysts: Jensen Chow, 310-385-5283,
jchow@globalcrossing.com, Press: Tom Goff, 310-385-5231,
tgoff@globalcrossing.com, both of Global Crossing/
/Web site: globalcrossing.bm |
