IP: Teleglobe to Deploy $5 Billion Fiber Network

[Dave Farber <farber@cis.upenn.edu>]

>Date: Mon, 10 May 1999 13:46:01 -0600
>To: farber@cis.upenn.edu
>From: Graham Blake <grahamb@ssimicro.com>
>
>
>This URL is horrific. I have pasted the entire article if you prefer it over the URL.
>http://www.teleglobe.com/template/press/pressindex.cfm?ilang=eng&itopic=General&itopicclass=News&iperiod=Q-2/1999&iLastTopic=General
>
>Graham Blake      
>grahamb@ssimicro.com
>
>        US$5 Billion Investment to Connect World?s 160 Largest Cities in 5 Years 
>        Largest Planned Global Network Will Significantly Accelerate Teleglobe's 
>        Already Fast Growing Internet and Carrier Business
>
>        Teleglobe Plans To Deploy Transatlantic Optical Cable System
>
>        NEW YORK , May 10, 1999 - In a move that challenges the competition in 
>        network technology, reach, speed and capacity, Teleglobe Communications 
>        Corporation, owner of the world?s third most extensive overseas 
>        telecommunications network, today announced that it will build 
>        GlobeSystem(sm), the world?s first globally-integrated Internet, voice, 
>        data and video network. The projected US$5 billion investment over the 
>        next five years integrates next-generation optical, packet and fiber 
>        technology to deliver lower-cost, innovative services globally. 
>        GlobeSystem is based on directly fusing optical wavelengths to routers and 
>        Asynchronous Transfer Mode (ATM) platforms as well as new network 
>        intelligence that enables customers to define their service parameters on 
>        demand.
>
>        GlobeSystem establishes new global communications standards by offering 
>        Carriers, Internet Service Providers, Business Customers and Content 
>        Providers direct network access from 160 major cities worldwide to deliver 
>        a broad range of advanced competitive services. Teleglobe will be the 
>        first to globally deploy advanced technology enabling stand-alone voice, 
>        Internet, data and video networks to converge on a single, efficient 
>        network. Another major feature of GlobeSystem is a next-generation network 
>        management system that enables superior service creation and delivery on a 
>        global scale. GlobeSystem allows Teleglobe to become the preeminent 
>        provider of bandwidth on demand services. Teleglobe is working with Nortel 
>        Networks (NYSE: NT), as well as other leading vendors, to build this 
>        innovative system.
>
>        The company is acquiring and building terrestrial and submarine fiber 
>        systems that will interconnect to Teleglobe facilities in 160 markets 
>        around the world. GlobeSystem will increase Teleglobe?s currently 
>        installed network capacity by more than 180-fold to gain a significant 
>        share of the exploding global Internet market.
>
>        As demand for global services continues to increase, Teleglobe?s 
>        investment allows us to accelerate the growth of our successful Internet 
>        and Carrier business. With GlobeSystem, Teleglobe will advance its 
>        leadership in global telecommunications, said Charles Sirois, chairman 
>        and chief executive officer, Teleglobe Inc. "Teleglobe already ranks as 
>        one of the largest providers of global Internet, Carrier and Broadcast 
>        services, with nearly 50 years? experience in building and managing global 
>        connectivity. Additionally, GlobeSystem allows Teleglobe to expand the 
>        geographic market in which it offers its diverse product line, building on 
>        our rapidly growing global customer base of Carriers and Internet Service 
>        Providers."
>
>        First Phase Underway
>        The first phase of the GlobeSystem deployment is underway, significantly 
>        increasing the geographic reach, speed and capacity of our current 
>        network, said Paolo Guidi, chairman and chief executive officer, 
>        Teleglobe Communications Corporation. As voice, Internet, data and video 
>        services continue to converge, GlobeSystem is the ideal solution that 
>        combines all services onto one global network regardless of their native 
>        protocol. As the first to truly adopt and apply technology directly fusing 
>        wavelengths onto routers and ATM on a global scale, Teleglobe is leading 
>        the industry.
>
>        In its initial phase, GlobeSystem will more than quadruple the company?s 
>        current network capacity and expand capacity and geographical coverage in 
>        the following regions:
>
>          North America: To complement its existing 161,000 DS-3 mile North 
>          American fiber optic network, Teleglobe is deploying fiber powered by 
>          "160-wavelength electronics in the Northeast, linking New York, 
>          Toronto, Montreal and other major markets. In addition, the company has 
>          deployed fiber cable capacity linking the northwest United States and 
>          Canada. Also, Teleglobe is upgrading its North American Internet 
>          backbone network to OC-192 status by fourth quarter 1999, allowing 
>          Internet traffic to reach customers at higher speeds.
>          Europe: Teleglobe is deploying latest-generation fiber powered by 
>          "160-wavelength electronics" on an intra-Europe ring, connecting London, 
>          Amsterdam, Rotterdam, Brussels, Antwerp and Paris to support the 
>          company?s expanding bandwidth requirements in the region. A second ring 
>          adding Germany and spurs into Switzerland, Austria, Italy and Spain is 
>          in the final stages of definition.
>          Global Capacity: Teleglobe is expanding its global capacity with 
>          investments in new fiber optic cables such as Americas 2, Atlantis 2, 
>          Columbus 3, Maya 1, Pan American, SAT/WASC/SAFE 3 and Southern Cross. 
>          Teleglobe is an original major investor, along with SBC Communications 
>          Inc. (NYSE: SBC) and 14 other major carriers, in the China-U.S. cable 
>          network. The China-U.S. cable will be one of the largest transpacific 
>          cable system in service and the only cable to connect North America, 
>          China and Japan.
>
>
>          GlobeCity(sm): Teleglobe currently has 27 GlobeCity nodes in operation. 
>          Twenty additional GlobeCity nodes, based on advanced IP and ATM 
>          technology, will be deployed within the next 12 months. The nodes 
>          directly connect to GlobeSystem to support the regional distribution of 
>          Teleglobe products to customers. Each GlobeCity node can support 
>          Teleglobe?s core products including voice, Internet access, 
>          international private lines, calling cards and content distribution. On 
>          completion, GlobeSystem will interconnect the 160 markets where 
>          GlobeCity nodes have been deployed.
>
>        A recent report by Forrester Research recommends that to address future 
>        telecommunications needs, carriers should deploy new high-performance, 
>        high-reliability networks. Describing the ideal telecom network of the 
>        future, Forrester emphasized that "smart carriers" must accommodate 
>        customers? access choices. Forrester emphasized that "customers want the 
>        flexibility to use whichever access method works best for them, exactly 
>        the approach adopted for Teleglobe's GlobeSystem network. GlobeSystem 
>        allows clients to connect seamlessly at GlobeCity nodes, regardless of the 
>        protocol or technology they are using. They further note that service 
>        intelligence must be separated from the network. Again, a Teleglobe first 
>        for this scale of network."
>
>        Second Phase (2001) To Include Development of New Transatlantic and 
>        Pacific Cable Systems, Network Management Design, Switch Vendor Selection, 
>        Additional GlobeCity Nodes
>
>        In this second phase, Teleglobe is planning to deploy a transatlantic 
>        fiber optic network system using next generation solutions to provide 
>        customers with substantial capacity at competitive prices, continuing 
>        Teleglobe?s leadership in undersea fiber optic deployment. In 1994, 
>        Teleglobe deployed GlobeSystem Atlantic? (CANTAT-3), the world?s first 
>        transoceanic fiber cable based on synchronous digital hierarchy (SDH) 
>        technology.
>
>        Teleglobe will expand in the Asia-Pacific region by deploying a fiber 
>        system providing connectivity to various countries throughout the region, 
>        as well as establishing a networking hub in Guam.
>
>        Teleglobe Inc. (NYSE, TSE, ME: TGO) is a recognized leader in global 
>        telecommunications. Through its subsidiary Teleglobe Communications 
>        Corporation, the company develops and supplies global connectivity 
>        services to carriers, Internet service providers, switchless resellers, 
>        multinational corporations and broadcast customers worldwide. Through 
>        Excel Communications? proven marketing and distribution channels, 
>        Teleglobe also caters to an expanding international retail customer base. 
>        The company is the fourth-ranked long distance provider in the United 
>        States and, according to a recent KMI Corporation study, the owner and 
>        operator of the world?s third most extensive overseas telecommunications 
>        network. Teleglobe has a 50% interest in ORBCOMM, the world's first 
>        commercial low-earth-orbit, satellite-based, data communications system. 
>        Additional information is available at www.teleglobe.com.
>
>        This press release contains forward-looking statements that reflect 
>        Teleglobe?s expectations, beliefs, intentions and strategies regarding 
>        future events. These forward-looking statements involve risks and 
>        uncertainties that may cause actual results to differ materially from 
>        those statements. Factors that could cause or contribute to such 
>        differences include, but are not limited to, rapidly changing market 
>        conditions, timely completion of the terrestrial and submarine fiber optic 
>        cable systems, impact of intense competition, successful negotiation of 
>        vendor arrangements, uncertainties related to international regulatory 
>        approval processes and other factors and risks discussed in Teleglobe?s 
>        public reports filed from time to time with the Canadian provincial 
>        securities commissions and the United States Securities and Exchange 
>        Commission.
>
>
>
>        For more information: 
>
>        John Murray
>        Director Corporate Communications
>        Teleglobe Communications Corporation
>        Tel. 1-703-821-4857
>        Email. jmurray1@teleglobe.com 
>
>        Nicole Blanchard
>        Director, Investor Relations
>        Teleglobe Inc.
>        Tel. 1-514-868-8148
>        Email. nblancha@teleglobe.ca 
>
>        Jacques Deforges
>        Vice-President and Corporate Treasurer
>        Teleglobe Inc.
>        Tel. 1-514-868-7716
>        Email. jdeforge@teleglobe.ca 
>
>        Sylvia Morin
>        Director, Communications
>        Teleglobe Inc.
>        Tel. 1-514-868-7762
>        Email. smorin@teleglobe.ca 
>
>
>           
>        © 1998 Disclaimer    
>
>         General News 
>
>
>
>        For more information:
>        John Murray 
>        Nicole Blanchard 
>        Jacques Deforges 
>        Sylvia Morin 
>
>