$700 Million Contract to Alcatel for Undersea Cable Loop Around South America

Cambridge Telcom Report, August 23, 1999

Alcatel has been awarded a $700 million contract by Global Crossing for a new high-capacity undersea telecommunications network around the South American continent to be called South American Crossing (SAC).

Alcatel will be supplying its dense wavelength-division multiplexing technology for the 18,000 km SAC network which will link seven countries by 2001; Chile, Peru, Colombia, Panama, the US Virgin Islands (St. Croix), Brazil and Argentina.

In addition to the undersea network, and in order to complete the loop, Alcatel will also be working with others to provide a terrestrial link, called the Trans-Andean Crossing, between Las Toninas and Buenos Aires, Argentina and Santiago and Valparaiso in Chile.

Configured as a ring network, the system will provide cost-effective, reliable, high-capacity bandwidth for Internet and multimedia traffic as well as for data and traditional telecommunications services.

The network will be completed in phases with initial service by the last quarter of 2000 and the complete network by the end of the first quarter 2001.

Mr. Jean Godeluck, chief operating officer of Alcatel's submarine networks business, said; "We are delighted that our advanced technology, competitiveness and capabilities have led to Alcatel being chosen by Global Crossing to support the development of their worldwide network."

The landing points for the undersea network will be: Las Toninas, Argentina; Santos, Rio de Janeiro and Fortaleza, Brazil; St. Croix, US Virgin Islands; Fort Armador, Panama, Buenaventura, Colombia; Lurin, Peru and Valparaiso, Chile. At all of these locations, except Fort Armador in Panama, Alcatel will also be responsible for the construction of the landing stations.

The contract for SAC is the third to be awarded to Alcatel by Global Crossing as part of the latter's plans for an expanding worldwide network. The 6000 km Mid-Atlantic Crossing (MAC) off the east coast of North America, is currently being built for completion at the end of 1999. The UK to Belgium link of the Pan-European Crossing is also being manufactured for completion by end-1999.

Alcatel builds next generation networks, delivering integrated end-to-end voice and data solutions to established and new carriers, as well as enterprises and consumers worldwide. With 120,000 employees and sales of EURO 21.3 billion ($25.0 billion), Alcatel operates in more than 130 countries. For more information, visit Alcatel on Internet: http:/www.alcatel.com

Alcatel's submarine networks division has the largest manufacturing capacity for undersea systems, currently 80,000 km per year, as well as the most advanced technology. It is the world leader in fully integrated city to city submarine networks.

Global Crossing is building and operating the world's most advanced global IP-based datacentric network, an end-to-end fiber optic platform for data, voice, video and Internet transmissions. The Global Crossing Network will span five continents and address 80% of the world's international traffic. A new unit of Global Crossing, Global Marine Systems Limited, possesses the largest flotilla of cable laying and maintenance vessels in the world and currently services more than a third of the world's undersea cable kilometers. Global Crossing's operations are headquartered in Hamilton, Bermuda, with executive offices in Los Angeles.