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Worldwide Fiber Buys Bermuda Telco GlobeNet for US$1 Billion

Tax-news.com

13 March 2000

Worldwide Fiber Inc, which is changing its name to 360networks, is buying Bermuda based telecommunications company GlobeNet Communications Group Limited, in a deal worth with over US $1 billion which will create a fiber optic network linking North and South America with Europe via Bermuda.
GlobeNet is based in St David's Bermuda and operates an undersea telecommunications network linking the United States and Bermuda, which is currently being extended to Brazil and Venezuela. The acquisition of GlobeNet by 360networks will expand the reach of this network into Europe also.

"GlobeNet leads in the race to provide broadband capacity on an advanced network between North and South America," said Greg Maffei, chief executive officer of 360networks. "We expect the merged 360networks and GlobeNet to be the first telecom company to provide facilities-based connectivity between the Americas and Europe."

GlobeNet also owns TeleBermuda International Limited, Bermuda's second international telecommunications provider, which has 35% of the local market. TeleBermuda's General Manager James Fitzgerald said that the deal should result in a reduction in international call costs in Bermuda of up to 50% by 2001. "Since TeleBermuda was set up in April 1997, the cost of long distance calls has fallen by 58 percent. We are totally committed to broadening our range of services and be the price leader on the Island. With Worldwide Fiber we will continue to do this," Mr Fitzgerald said.

"We are delighted to join a technology leader like 360networks," said Jorge Escalona, president and chief executive officer of GlobeNet. "This is a key step in enabling a seamless global network for high-capacity network and value-added services."

GlobeNet is currently developing Atlantica-1, a 22,500-kilometer undersea network linking the United States, Bermuda, Brazil and Venezuela. The primary ring of Atlantica-1 is scheduled to enter service by December 2000. A second submarine cable system from Fortaleza, Brazil to Rio de Janeiro with a terrestrial network to Sao Paulo is scheduled for service by February 2001. Another submarine cable will be installed during the middle of 2001 to provide a closed ring between Fortaleza and Rio de Janeiro. Alcatel, a leading telecommunications equipment manufacturer, is designing, building and installing the Atantica-1.

360networks offers broadband network services for telecommunications companies, ISPs, application service providers and data-centric enterprises. 360networks is completing a technologically advanced 90,300-kilometer (56,100-mile) network, including a fiber optic terrestrial network in North America and Europe and undersea cables linking North America, South America and Europe.

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