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Carrier Channel: News Briefs

Posted: 09/2002

News Briefs

* Hutchison Whampoa Ltd. and Singapore
Technologies Telemedia Pte. Ltd.
will take control at Global Crossing
Ltd.
The companies agreed to invest $250 million for a 61.5 percent interest
in Global Crossing — a third of what they initially offered in January. The
U.S. Bankruptcy Court for the Southern District of New York approved the
agreement in August. Global Crossing’s banks and creditors will hold a 38.5
percent stake, $300 million in cash and $200 million of new senior notes.
Shareholders walk away empty-handed.

Global Crossing Ltd. is preparing a
reorganization plan and anticipates emerging from bankruptcy court early next
year following court and regulatory approvals.

* Williams Communications Group
Inc.
announced it is on target to emerge from bankruptcy by Oct. 15 after
reaching an agreement to secure a $150 million investment through New York-based
diversified holding company, Leucadia National Corp. The carrier’s carrier would
eradicate approximately $6.5 billion in claims and emerge from bankruptcy with
around $525 million in debt. The agreement is a blow to Level 3 Communications,
which submitted a $1.1 billion bid in July to acquire Williams Communications.

Williams Communications also
disclosed plans Friday to change its name to WilTel within two years. WilTel,
the predecessor of Williams Communications, tapped decommissioned pipelines in
the 1980s to operate fiber-optic cables. In 1995 WilTel was sold to LDDS, which
then became WorldCom Inc. Williams Companies bought back the rights to the name.

* Metro carrier’s carrier Memphis
Networx
raised an additional $12 million in July to fund its network
expansion and operation through to profitability. The latest round, led by
Memphis Light Gas and Water, brings the total raised by Memphis Networx to at
least $37 million. The company provides metro access and metro core services
include SONET, Ethernet and optical wavelengths to carriers, service providers
and building owners in second- and third-tier cities.

* Equinix Inc. announced
Verio Inc. chose Equinix Internet Core Exchange service for interconnection with
other backbone networks participating in Equinix’s Internet Business Exchange (IBX)
centers in the Chicago, Dallas, Silicon Valley and Washington D.C. areas.

Equinix also announced Infonet
Services Corp.
, a provider of global communications services for
multinational companies, will install a point of presence at Equinix’s IBX
center D.C. with possible expansion to locations nationwide. Infonet will be
able to connect its network directly to other service providers via the Equinix
GigE Exchange service.

* Wholesaler US Signal has
turned up its first customer for the recently lit Michigan portion of its
four-state fiber-optic network. TelNet Worldwide Inc. will use US Signal’s fiber
to resell a broadband voice and data services. Terms of the agreement were not
disclosed. The US Signal network consists of 500 miles of metro rings around 14
cities and 2,000 route miles of long-haul fiber connecting first-, second- and
third-tier markets in Illinois, Indiana, Michigan and Wisconsin.

* ITXC Corp. is sending phone
traffic over its global network, ITXC.net, to Data Access (India) Ltd.,
the second largest ISP in India and one of three new carriers licensed to offer
international long distance since the market opened April 1. India’s voice
service market will represent $13.3 billion in revenue for 2002, Pyramid
Research reports. Data Access is receiving revenue for terminating calls from
ITXC.net and plans to purchase outbound call completion from ITXC in the future.

 

Links

Data
Access India Ltd.     
www.dataaccessindia.com

Equinix
Inc.      www.equinix.com

Infonet
Services Corporation      
www.infonet.com

ITXC
Corp.      www.itxc.com

Level
3 Communications Inc.     
www.level3.com

Memphis
Networx      www.memphisnetworx.com

Pyramid
Research       www.pyramidresearch.com

TelNet
Worldwide Inc.     
www.telnetww.com

US
Signal      www.rvpfiber.com

Verio
Inc.      www.verio.com

Williams
Communications Group Inc.     
www.williamscommuncations.com

WorldCom
Inc.            
www.worldcom.com


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