Global Crossing, ImpSat in Latin America Deal

ImpSat Corp., a provider of voice and data communications services in Latin America, will provide a terrestrial link for Global Crossing Ltd.'s planned fiber optic cable network in South America, ImpSat announced yesterday.

ImpSat will provide a terrestrial link between the network's landing points in Argentina and Chile, which would complete the network's ring system, ImpSat said. The cost of the link is US$64 million [M], the company said in a statement.

Global Crossing's network, called South American Crossing (SAC), will be made up of 18,000 kilometers of fiber optic cable. Global Crossing awarded Alcatel SA a $700 million [M] project to design, build and implement the SAC. Lucent Technologies Inc. has also been tapped to build parts of the network.

ImpSat expects to complete its work between the fourth quarter of 2000 and the first quarter of 2001. The companies have also agreed to enter into co-marketing programs to combine the Global Crossing network with a pan-regional network that ImpSat is building, the companies said. ImpSat has also agreed to buy at least $46 million [M] worth of capacity in Global Crossing's global network.

Global Crossing is building an Internet Protocol-based fiber optic network that will span five continents.

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