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FLAG TELECOM AWARDED TYPE 1 LICENSE IN JAPAN.

FLAG Telecom (Nasdaq: FTHL; LSE: FTL), London, U.K., a leading independent global carriers' carrier, has announced that it's wholly-owned subsidiary, FLAG Telecom Japan, has been awarded a Type 1 license to operate international telecommunications services in Japan. The license was awarded by the Ministry of Post and Telecommunications. With this license FLAG Telecom will be able to offer a Managed Bandwidth Service (MBS) between Tokyo and major cities in Europe, the United States and Asia. In addition, FLAG Telecom will offer Internet connectivity and IP-based services between Tokyo and Asia, the U.S. and Europe. The company expects to begin operating these services from 1 July 2000.

Ed McCormack, COO and CFO, FLAG Telecom, said: "This will be our first roll-out of MBS and IP services in Asia. We are already operating MBS successfully on our London-Madrid route and have had several enquiries for a US and Europe-Tokyo service. This latest license is in line with our strategy of providing the services our customers need, adding value to our traditional carrier service offerings and driving utilization of our global network."

FLAG Telecom Japan is based in Tokyo and was established in 1999. The company's president and representative director is Kimiaki Ueno, who has over 25 years telecommunications experience and prior to joining FLAG Telecom was most recently representative director and CE of MCI International (Japan) Co. Ltd.

Managed Bandwidth Service (MBS) will offer fully protected international city-to-city circuits backed by service delivery and availability guarantees. The IP Point to Point (IP-P) Service runs on a private IP-protocol and includes latency guarantees. It is designed for customers running private Intranet backbones and offering Voice-over-IP services. The IP Transit (IP-T) Service is a traditional peered connection to the world Internet Networks.

The FLAG Europe-Asia cable has two operational landings in Japan, at Ninomiya and Miura. This license will allow carriers, new operators and ISPs direct access to the world telecommunications and Internet markets via a one-stop shop from the centre of Tokyo using a high-capacity, fibreoptic, subsea cable network stretching over 28,000 km through Asia and the Middle East to Europe.

The FLAG Europe-Asia cable, along what is considered the most difficult route of any cable system in the world, took 27 months and required approximately 4,000 permits to install. It spans many of the world's fastest growing economies and offers direct connectivity to over 75 percent of the world's population. Privately financed at a cost of $1.6bn, the cable is designed to meet the growing demand for international communications services, providing carriers with a world-class broadband superhighway. The company has an established customer base of over 90 leading carriers and ISPs, including 17 of the top 20 international carriers based on traffic volume.

FLAG Atlantic-1, now under construction, will be a dual cable system connecting the East Coast of the United States, with nodes in the heart of New York to two landings in Europe - one in Brittany, France and the other in Cornwall, UK, with city nodes in Paris and London. With the addition of FLAG Atlantic-1, which will be built and operated as a 50:50 joint venture with GTS, the network will extend to 42,500 km, enough to encircle the globe. FLAG Telecom continues ahead of its business plans for the first two years of operation and has recorded over $1.5 billion in cumulative sales on all company-owned systems.

For more information, visit www.flagtelecom.com or fax +44 20 7317 0808.
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Title Annotation:Company Business and Marketing
Comment:FLAG TELECOM AWARDED TYPE 1 LICENSE IN JAPAN.(Company Business and Marketing)
Publication:Worldwide Telecom
Geographic Code:9JAPA
Date:May 1, 2000
Words:580
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