Global Crossing finishes optical network project

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By James Cope

(IDG) -- A four-year optical network project by Global Crossing Ltd. that connecting 200 cities in 27 nations was completed when the service provider hooked up Lima, Peru, to its South American cross-connection, company officials said last week. Hamilton, Bermuda-based Global Crossing sells networking and telecommunications services to corporate customers and other carriers.

In a statement Friday, Global Crossing CEO Tom Casey attempted to parlay successful completion of the network project into good financial news.

"Global Crossing's business plan is fully funded, including receipt of over $3 billion in after-tax proceeds from the [Incumbent Local Exchange Carrier] sale closing June 29," he said. "In addition, we have already recouped more than half of our construction costs through existing sales contracts."

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Global Crossing is in the process of selling its local telephone business to Stamford, Conn.-based Citizens Communications Co. for $3.5 billion. Citizens Communications provides local telephone services to rural and suburban areas in 17 U.S. states.

Casey said the newly completed network provides "seamless end-to-end connections to ... customers from Europe to North and South America to Asia."

Global Crossing's carrier customers include Deutsche Telekom AG, British Telecommunications PLC, Telecom Italia SpA and Qwest Communications International Inc. Its corporate customers include Procter & Gamble Co., Merck & Co., Sony Corp., Pfizer Inc., Microsoft Corp., NEC Corp. and American Express Co.

"Unlike many other competitive carriers, Global Crossing has proved able to pass through the peak of its funding needs," said analysts at New York-based Merrill Lynch & Co. in a report. The new network gives Global Crossing "a strong source of competitive advantage in its pursuit of large commercial and carrier customers globally."