Undersea Cable Will Lower Rates

Bermuda, Dec. 11, 1997 (DLD Digest) - Global Crossing Ltd., owner of the Atlantic Crossing and Mid-Atlantic Crossing submarine cables, Wednesday announced the creation of a state-of-the-art undersea fiber-optic cable system to span from California to Panama, with landing stations in Mexico and other points in Central America. Named Pan-American Crossing (PAC-1), the cable system will be the largest, most powerful system to link North and Central America. Pan-American also represents the first fiber-optic connectivity for voice, video and data transmission between Latin American countries and the United States without transiting the United States. "This cable system represents an important north-south communications link in our global fiber-optic network," said Lod Cook, Global Crossing's co-chairman. "Pan-American Crossing marks our first entry into the Pacific marketplace, joining our other undersea cable systems in the Atlantic. "Global Crossing is the first truly independent company to provide capacity on demand to the international telecommunications marketplace." PAC-1 will create the first direct path of connectivity to the United States and Asian markets for Latin American countries without accruing additional transit fees. Currently, Latin American countries must cross the United States through terrestrial communications networks and pay a transit fee to U.S. carriers to connect to fiber-optic cables reaching the Pacific Rim. PAC-1 will span 8,000 kilometers, connecting California, Mexico and Panama to cables connecting South America. Full commercial service for PAC-1 is scheduled for 1999. Wednesday's statement comes on the heels of Global Crossing's announcement of the creation of Mid-Atlantic Crossing in partnership with TeleBermuda International Limited. Mid-Atlantic Crossing is an undersea fiber-optic network linking New York to the Caribbean, with landings in Bermuda and Florida. This system will then be linked to Atlantic Crossing, which spans more than 14,000 kilometers, connecting the United States, the United Kingdom, the Netherlands and Germany. "Pan-American Crossing represents another step in Global Crossing's mission of providing a worldwide network of fiber-optic facilities to our customers -- the international telecommunications carriers," said Barry Porter, Global Crossing managing director. "Global Crossing is poised to be the premier supplier to all international carriers by offering our customers a high-quality, cost-effective alternative to building their own facilities." Global Crossing is the name recently selected by Global Telesystems Ltd., owner of the Atlantic Crossing cable, to better reflect the strong market acceptance of Atlantic Crossing and the request by many customers for more Global Crossing projects in other parts of the world. Global Crossing develops state-of-the-art subsea telecommunications-cable systems to satisfy the increasing demand for high-quality, reliable undersea transmission capacity. Global Crossing is capitalized by a group of international investors led by California-based Pacific Capital Group.