Global Crossing and Frontier this week announced an $US$11.2 billion merger of their two companies, creating a global IP-based network offering Internet, data, local and long-distance telephone, and conferencing services.
Global Crossing, based in Bermuda, owns and operates an international fibre-optic network. Frontier, based in New York, is a large telecommunications company that sells facilities-based integrated communications and offers Internet services. The combined company will have more than 1 million fibre miles, reaching 159 cities in 20 countries offering voice, Web hosting, private line, ATM, and Internet services, the two companies said.
The transaction is subject to shareholder approval and the companies expect to complete the transaction in this year's third quarter. The new company will have combined annual sales of more than $4 billion and more than 8500 employees.