Global Crossing Network Completion Advances With Activation of Eastern Ring in Germany.
HAMILTON, Bermuda--(BUSINESS WIRE)--May 25, 2000
Global Crossing Ltd. (Nasdaq:GBLX):
-- Global Crossing Network is lit and operational from Tokyo to Berlin. -- Announced global network, to be completed by mid-2001, is on schedule and under contract to a diverse group of suppliers, including Alcatel, Bestel, Global Marine Systems, ImpSat, KDD/SCS, Lucent, Nortel and Tyco Submarine Systems. -- "This is the world's first truly global, fully integrated, fiber optic telecommunications network," says CEO Leo Hindery, "one of the most remarkable, privately funded infrastructure projects of our time."
Global Crossing Ltd. (Nasdaq: GBLX), which is building and offering services over the world's most extensive global IP-based fiber optic network, yesterday lit the Eastern Ring of its Pan European Crossing network (PEC), connecting six additional German cities and expanding the reach of its global network to more than 40 major commercial centers in Europe.
Global Crossing confirmed that it expects to complete, on time and on budget, all of the announced segments of its worldwide network by mid-2001. The company also confirmed that all of its announced systems still under construction are under contract to a diverse group of major suppliers, including Alcatel, Bestel, Global Marine Systems, ImpSat, KDD/SCS, Lucent, Nortel and Tyco. (On Monday, Global Crossing filed a lawsuit against Tyco Submarine Systems alleging tortious conduct and breach of contractual obligations. Of the construction remaining to complete the announced segments of the Global Crossing Network, Tyco is responsible for slightly more than five percent.)
The new Eastern Ring is an extension of the high-capacity PEC network and comprises the six cities of Berlin, Dresden, Leipzig, Munich, Nuremberg and Stuttgart. Thirteen other cities in Europe were brought on line in December 1999, when the first three rings of the PEC network went live. The PEC network links major European cities with one another and with the rest of the Global Crossing Network, serving the Americas and Asia.
"The lighting of this new ring in Europe is another significant milestone in the approaching completion of our network construction," said Leo Hindery, Jr., Chief Executive Officer of Global Crossing. "By mid-2001, a bit more than a year from now, Global Crossing will complete the world's first truly global, fully integrated, fiber optic telecommunications network -- one of the most remarkable, privately-funded infrastructure projects of our time. Today, we can carry traffic on our own fiber from 19 cities in Europe, across two oceans and North America, to Tokyo. Three-quarters of this network is being newly constructed and the other one-quarter is new network that we acquired. The rest of the system remains on schedule, on budget, and under contract. This puts us in a position to have a unique worldwide network that will be first in reach, first in speed and first in its advanced technologies."
Added Hindery: "From telehouse locations and Web hosting centers in the world's major cities, the Global Crossing Network will provide unprecedented connectivity to Europe, North and South America and Asia. The value of the Global Crossing Network is its ability to seamlessly link the world's major business centers with nearly limitless bandwidth, providing the world-class tools and services customers need to move information quickly, efficiently and effortlessly."
Below is a status report listing the announced systems that comprise the Global Crossing Network, including the major suppliers under contract to build each segment:
Atlantic Crossing-1 (AC-1), an undersea system connecting the North American network with the Pan European Crossing network. In service. Built with Tyco Submarine Systems.
Atlantic Crossing-2 (AC-2), a second undersea system connecting North America and Europe. Scheduled for service in the third quarter of 2000. Tyco Submarine Systems is under contract with Level 3 to build AC-2, and Global Crossing and Level 3 will each own 50 percent of the project.
East Asia Crossing (EAC), an undersea system that will connect several countries in Asia to each other and to the rest of the world through Pacific Crossing 1. The segment connecting Japan and Hong Kong is scheduled for service in the fourth quarter 2000. The full ring is scheduled for service in the second quarter 2001. Under contract to be built with KDD/SCS.
Global Access Ltd. (GAL), a terrestrial system connecting major cities in Japan to Pacific Crossing 1 and East Asia Crossing. The first segment is in service connecting Tokyo to the Pacific Crossing landing station at Ajigaura. The full ring is scheduled for service in the second quarter 2001. Being built with Marubeni and Lucent Technologies.
Hutchison Global Crossing (HGC), a terrestrial system in Hong Kong which will connect to East Asia Crossing. Acquired 457 route miles, connecting 600 buildings in Hong Kong, through formation of joint venture with Hutchison Whampoa. In service.
Mexican Crossing, a terrestrial system connecting major cities in Mexico with Pan-American Crossing. The Mazatlan ring is in service. The full system is scheduled for service in the third quarter of 2000. Being built with Bestel and Nortel.
Mid-Atlantic Crossing (MAC), an undersea system connecting the eastern United States and the Caribbean with Atlantic Crossing-1 and South American Crossing. The segment connecting New York to Miami is in service. The complete ring is scheduled for service in the third quarter of 2000. Being built with Alcatel.
North American Crossing (NAC), a terrestrial system connecting 120 cities in the United States. In service. Acquired in the merger with Frontier Corporation.
Pacific Crossing-1 (PC-1), an undersea system connecting the United States to Japan. The northern segment, connecting Washington State with Japan, is in service. The southern segment is scheduled for service in the fourth quarter of 2000. Being built with Tyco Submarine Systems and KDD/SCS.
Pan-American Crossing (PAC), a primarily undersea system that will connect the western United States, Mexico, Panama, Venezuela and the Caribbean. The segment connecting Ft. Amadador-Mazatlan-Tijuana is in service. The full system is scheduled for service in the fourth quarter of 2000. Being built with Tyco Submarine Systems.
Pan European Crossing (PEC), a primarily terrestrial system connecting Atlantic Crossing to more than 40 major commercial centers in Europe. Four rings connecting 19 major European cities are in service, along with more than 2,000 cities and towns in the U.K. Future extensions scheduled for service: the Irish Ring, third quarter of 2000; the Spanish Ring, first quarter of 2001; and the Scandinavian Ring, first quarter of 2001. Built with Lucent and Alcatel. Includes the U.K. network acquired from Racal Electronics.
South American Crossing (SAC), an undersea and terrestrial system that will connect the major cities of South America to Mid-Atlantic Crossing and Pan-American Crossing. The segments connecting Buenos Aires, Las Toninas, Santos, Rio de Janeiro, Fortaleza and St. Croix are scheduled for service in the fourth quarter 2000. The final segment, connecting Santiago, Lurin, Buenaventura, Valparaiso and Ft. Amador (Cook's Crossing), is scheduled for service in the first quarter of 2001. Being built with Alcatel, Global Marine Systems and ImpSat.
About Global Crossing
Global Crossing Ltd. (Nasdaq: GBLX) is building and offering services over the world's most extensive global IP-based fiber optic network, which will have more than 101,000 route miles, serving five continents, 27 countries and more than 200 major cities. Global Crossing's subsidiary, GlobalCenter Inc., is a leading Internet service business, and its customers represent many of the largest and most densely trafficked sites on the Web. Asia Global Crossing, a joint venture among Global Crossing, Microsoft Corporation (Nasdaq: MSFT) and Softbank Corp. (Tokyo Stock Exchange: 9984), is building the first pan-Asian broadband IP network to provide broadband and Internet services to the Asia-Pacific region. Global Crossing's operations are headquartered in Hamilton, Bermuda, with principal offices in Los Angeles and Sunnyvale, California; London, England; Morristown, New Jersey; Rochester, New York; and Miami, Florida. Visit Global Crossing at www.globalcrossing.com on the Web.
Statements made in this press release that state the Company's or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to complete systems within currently estimated time frames and budgets; the ability to compete effectively in a rapidly evolving and price competitive marketplace; changes in the nature of telecommunications regulation in the United States and other countries; changes in business strategy; the successful integration of newly-acquired businesses; the impact of technological change; and other risks referenced from time to time in the Company's filings with the Securities and Exchange Commission.
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|Date:||May 25, 2000|
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