Feeds

Global Crossing, Microsoft sign Asian fibre net JV deal

MS takes 3.5 per cent of $4bn operation

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

Plans for the first Asian broadband seamless network have come nearer to fruition with the signing of a deal announced in September between Global Crossing, Microsoft ($175 million for a 3.5 per cent stake) and Softbank (also $175 million for 3.5 per cent), to create a joint-venture company called Asia Global Crossing. Its East Asia Crossing network will consist of a high-capacity fibre optic link between China, Taiwan, Hong Kong, Singapore, Malaysia, Korea and the Philippines, and is scheduled for completion in June 2001. It is intended that the JV will expand to include Thailand, India, Indonesia, Australia and New Zealand. A couple of weeks ago, Hutchison Whompoa and Global Crossing agreed a 50:50 joint venture to tackle telecoms and Internet opportunities in Hong Kong. When the present plans are completed, Global Crossing will be able to offer network access to some 80 per cent of the world's telecoms traffic, but whether Asian users will be able to afford the tariffs remains to be seen. It has six undersea systems: Atlantic Crossing (AC-1, which started operation in May 1998), Pacific Crossing (PC-1), Mid-Atlantic Crossing (MAC), PanAmerican Crossing (PAC), South American Crossing (SAC) and AC-2. In addition, it has the PanEuropean Crossing (PEC) and Global Access Limited (GAL) in Japan. For its part, Global Crossing, with $4 billion of funding, has through its Global Marine Systems subsidiary the biggest fleet of cable-laying and maintenance vessels in the world. Last week, the acquisition of Racal Telecom was completed following the October agreement by Global Crossing to buy it for £1 billion in cash. Racal's network has a traffic flow consisting of 65 per cent data. The network, with its London metropolitan ring, is expected to be within 5km of two-thirds of UK businesses by 2001. A key feature is that Racal has more BT connection points than any other UK network, which reduces the interconnection costs. The Racal and Global Crossing networks are currently being linked together in the London docklands. ®

The Essential Guide to IT Transformation

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.