chello broadband n.v. Signs Letter of Intent to
20.04.1999, 17:53
Purchase Capacity on Flag Atlantic-1 -- The World's FirstTerabit/S Transoceanic Cable Amsterdam (PROTEXT) - chello broadband n.v. (chello), Europe'sleading broadband internet service provider and an operatingcompany of United Pan Europe Communications (UPC) (Nasdaq: UPCOY;AEX: UPC) today announced that it has signed a Letter of Intent(LOI) for capacity on the new FLAG Atlantic-1 (FA-1)transatlantic cable system. FA-1, a 50-50 joint venture betweenGlobal TeleSystems Group Inc. (GTS) (Nasdaq and Easdaq: GTSG) andFLAG Telecom, will operate at 1.28 terabit/s and offer customersdirect connectivity between the heart of New York and the citiesof London and Paris. The Letter of Intent is subject to requiredcorporate approvals and execution of a Capacity Right of UseAgreement. The LOI outlines the commitment by chello to purchase theequivalent of eight 155 Mbps STM1s on the FA-1 cable system. Thelink from New York to London and Paris will enable chello tooffer service on a terabit dual cable system with more than 16times the capacity of existing transatlantic cables. Operationalin the fourth quarter 2000, the additional capacity will connectdirectly into AORTA, chello's own broadband network backbonewhich also utilises the GTS Carrier Services Trans EuropeanNetwork (TEN). "AORTA already leads Europe as the most successful broadbandIP network," said John Riordan chief executive officer of chellobroadband n.v. and vice chairman of UPC. "Once concluded, thisagreement will further enhance chello's ultra-fast network so wecan continue providing our customers with the excellentperformance they have come to expect. It will also strengthen ourcompetitive position by further differentiating the services weoffer in the field of broadband high-speed Internet access anddata transmission. This will take chello into the global carrierleague and enable chello to compete as a tier one carrier classnetwork alongside companies such as MCI/Worldcom and AT&T" This announcement follows on from last week's release ofchello's first quarter figures of 36,650 broadband internetcustomers giving it the largest broadband internet user base inEurope. "We are delighted to have signed this LOI with FLAG-Atlantic-1," said Mark Schneider, chairman of chello broadband n.v. andchairman/CEO of UPC. "The provision of this transatlanticbandwidth, with more available as required, will benefit alldivisions of UPC, including Priority Telecom, and will take UPCto the fore front of the converging global voice, data, andtelecommunications services market." "chello has been a long-term customer of ours and we areparticularly pleased that they continue to show their confidencein us", said Jan Loeber, president GTS Carrier Services.
About chello broadband n.v. chello broadband is Europe's first and leading broadbandInternet service provider. It has the largest reach in Europe andis committed to delivering next-generation, 24-hour accessibleInternet services and broadband content to consumers via high-speed cable modems, with no phone bills -- ever! It provides aturnkey service to cable network operators based in Europe. The company is an operating company of United Pan-EuropeCommunications (UPC), with headquarters in Amsterdam and officesin Amsterdam, London, Paris, Vienna, Brussels and Oslo. Byproviding unparalleled communications services, chello broadbanddelivers m@ximum Internet through cable with minimal cost. chello(TM) is a registered trademark of chello broadband n.v. About United Pan-Europe Communications N.V. (UPC) Headquartered in Amsterdam, UPC (Nasdaq: UPCOY; AEX: UPC) isone of the most innovative broadband communications companies inEurope, owning and operating the largest private pan-Europeangroup of broadband communications networks. UPC provides cabletelevision, telephony, Internet and programming services. It haswell-established multi-service communication systems in 10countries in Europe and Israel. As at Feb 28, 1999 UPC's networkspassed approximately 4.8 million homes, they had 3.5 millionsubscribers of which approximately 500,000 take an expandedservice, 92,600 telephony access lines and as at March 31, 1999,36.650 broadband access Internet subscribers. UPC delivers voice, video and data services, which allow it tooffer, stand alone and integrated service solutions to suit itsindividual customer's needs. UPC owns Priority Telecom(TM), itsCLEC and integrated telephony company and chello broadband n.v.,its high speed broadband Internet company. About FA-1 FLAG Atlantic-1 has been designed from the ground up as aCity-to-City cable system and will offer direct connectivitybetween London, Paris and New York, with seamless connections tonumerous other cities in the US, Europe and other countries inthe Middle East and Asia Pacific. The cable will be a loop system, connecting the East Coast ofthe United States, with two nodes in midtown and downtownManhattan, to two landings in Europe -- one in Brittany, Franceand the other in Cornwall, UK. The entire FLAG Atlantic-1 systemis planned to consist of three self-healing, high capacity loopswith twin terrestrial access points connecting to the TEN (TheEuropean Network, formerly Hermes Europe Railtel) as well as tothe existing FLAG cable system, stretching over 27,000 km fromthe UK to Japan. FLAG Atlantic-1 will use laser-generated light to transmitdigital information over four fibre pairs and is capable ofcarrying over one trillion bits of information per second. Thecable will be highly resilient with no single point of failure.The cable will integrate seamlessly into GTS's and FLAG Telecom'sexisting systems, providing secure end-to-end circuits to almostall major world business centres. GTS Carrier Services GTS Carrier Services includes Trans Oceanic Services (TOS)which is responsible for the company's worldwide subseaoperations including the FLAG Atlantic-1 joint venture; InternetProvider Services (IPS), which handles a variety of IP valueadded services; and Trans European Network (TEN, formerly HermesEurope Railtel), which is responsible for the operation of thecompany's 12,200 kilometre European fibre optic network. Ross Sampson
Julia Crawford vp communications
senior account executive chello broadband n.v.
Edelman PR tel: + 31-20-3552-717
tel: + 44-171-344-1342 email: ross@chello.com
email:jcrawford@edeluk.com Henrietta Hirst
Dave Scott director group corporate
vp corporatecommunications communications
GTS Carrier Services UPC N.V.
tel: +32-2-658-5462 Tel: +44-171-518-7980
email:dave.scott@herten.com email: hhirst@upc.nl Michael J. Smith
Jane Windsor vice president technology
director of communications Edelman PR
FLAG Telecom Limited Tel: + 1-202-326-1809
tel: +44-171-317-0811 email: michael_smith@dc.edelman.com email:jwindsor@flagtelecom.com or visit our websites on:
www.chello.com
www.flagatlantic.com
www.chello.at
www.chello.be
www.fr.chello.com
www.chello.nl
www.chello.no otsOriginal Text Service: chello broadband n.v. Internet:http://www.newsaktuell.de Contact: Ross Sampson, vpcommunications of chello broadband n.v., +31-20-3552-717, orross@chello.com; or Henrietta Hirst, director group corporatecommunications of UPC N.V., +44-171-518-7980, or hhirst@upc.nl;or Michael J. Smith, vice president technology of Edelman PR,202-326-1809, or michael_smith@dc.edelman.com; or Julia Crawford,senior account executive of Edelman PR, +44-171-344-1342, orjcrawford@edeluk.com; or Dave Scott, vp corporate communicationsof GTS Carrier Services, +32-2-658-5462, ordave.scott@herten.com; or Jane Windsor, director ofcommunications of FLAG Telecom Limited, +44-171-317-0811, orjwindsor@flagtelecom.com Web site: http://www.chello.com
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