Cello Buys Space on Transatlantic Cable.

Cello Broadband NV, the Dutch cable internet service provider, has signed a letter of intent to purchase capacity on FLAG Atlantic-1 (FA-1), the 1.28 terabit per second transatlantic cable venture. FA-1 is a joint venture between Global TeleSystems Group Inc and FLAG Telecom Ltd, the first of FLAG's projects in its plan to wrap a terabit cable around the world. The submarine cable is due to be completed in the fourth quarter 2000, and will connect New York to London and Paris. Cello says it will lease the equivalent of eight 155mbps STM-1 circuits over FA-1. The company, a subsidiary of Nasdaq-quoted United Pan-European Communications NV, will connect FA-1 to its Aorta broadband backbone. The letter of intent is subject to corporate approvals and a Capacity Right of Use agreement.