|[Subsea] Light Reading on Fujitsu Wins - Two Stories |
Fujitsu Wins $1.5B FLAG Deal
SEPTEMBER 03, 2007 PR Newswire
LONDON, MUMBAI, TOKYO, and PARIS -- FLAG Telecom, a leading provider of international network transport and data services, today announced it has signed a multi-million dollar turnkey contract with Fujitsu (TSE:6702) for the construction of FLAG NGN cable, a multi-terabit, new generation DWDM submarine cable system. Anil D. Ambani, Chairman of Reliance Communications, said:
“At the beginning of the year, we announced our US$ 1.5 billion (Rs 6,000 crore) global expansion of FLAG’s Global Next Generation Network over the next few years. Today’s announcement is a major initiative in that direction. Worldwide the global market for enterprise and institutional data services is a U.S. $ 90 billion (Rs 360,000 crore) market. With completion of NGN cable, FLAG will be the only service provider to reach over 60 countries on a privately owned cable system coupled with the technology leadership to deliver broadband multimedia communications. We are poised to achieve leadership in global data communications leveraging Reliance Communications’ strength as India’s largest integrated and fully converged communications service provider, Yipes leadership in fast growing Ethernet services in the U.S. and FLAG’s leadership in global data services.”
Highlights of FLAG NGN cable
FLAG has always played a pioneering role in the global telecommunications business which began with FLAG Europe Asia, the world’s longest and first privately funded undersea fibre system commissioned in 1997. Such path-breaking milestones have been achieved at regular intervals by FLAG throughout its history. In 2006, FLAG created history with commissioning of FALCON the first private terabit cable system connecting all the countries in the Middle East and India to rest of world.
FLAG NGN cable is the latest initiative that will change how the world communicates and does business. FLAG NGN cable involves the construction of 4 new systems across Mediterranean, East Africa, Asia and Pacific regions. The extensions of each system will be finalized over next few weeks based on ongoing discussion with landing parties in each country.
FLAG NGN System 1: Asia: India to Hong Kong with potential interconnection to Thailand, Malaysia, Singapore, Indonesia, Vietnam, Philippines, and Cambodia
FLAG NGN System 2: Africa: India to Kenya with potential extension to Republic of South Africa and Reunion. Further potential extension to Mozambique, Tanzania, Madagascar, Mayotte and Mauritius. FLAG NGN System 3: Mediterranean: Egypt to France with potential extension to Syria, Greece, Cyprus, Turkey, Malta, Libya, Tunisia and Italy.
FLAG NGN System 4: Pacific: Japan to US West Coast.
FLAG has awarded a Supply Contract to construct the systems across Asia and the Mediterranean (System 1 and 3) to Fujitsu. FLAG has also awarded a Letter of Intent to construct the systems in the East Africa and Pacific regions (System 2 and 4) to Fujitsu. The Letter of Intent is a precursor to the Supply Contract to be awarded at a later date. Under the terms of the Supply Contract, won in open tender, Fujitsu, already a key supplier to FLAG Telecom, will manage all areas of the cable build, including installation, commissioning and testing. The initial system build will span over 10,000 km and offer significantly more high-quality capacity in the region to help address the growing traffic demands from the accelerating take up of broadband and multimedia services.
Hiroaki Kurokawa, President & Representative Director of Fujitsu Ltd., said: "We are very pleased to participate in this new project with FLAG Telecom contributing to the global deployment of NGN. Building on our track record in jointly constructing submarine cable system together with FLAG Telecom, we are confident that our close partnership will deliver an equally successful project this time. Leveraging cutting-edge Fujitsu photonic technology, we aim to contribute to the global roll-out of NGN and thereby enable users around the globe to fully enjoy the benefits of advanced broadband communications.”
Fujitsu Scores Massive FLAG Deal
Nicole Willing, Reporter, Light Reading
SEPTEMBER 03, 2007
Fujitsu Ltd. (Tokyo: 6702 - message board; London: FUJ) has landed a monster $1.5 billion next-generation subsea network buildout deal from FLAG Telecom Ltd. , the two companies announced Monday. (See Fujitsu Wins $1.5B FLAG Deal.)
That's not Fujitsu's only new subsea deal, as it has also won a capacity upgrade contract from transpacific network operator Pacific Crossing Ltd. .
But it's the FLAG deal that's making the headlines, as Fujitsu has snapped up the entire rollout against fierce competition.
FLAG, part of India's Reliance Communications Ltd. , announced its plans in December to lay an IP network over an additional 50,000 kilometers of submarine cable in four systems around the world. (See FLAG Announces NGN.)
The buildout will nearly double the length of FLAG’s global network from 65,000 km to 115,000 km, and extend its reach to 60 countries.
Construction on the network is expected to be completed by early 2010 and will allow Reliance to compete for a larger share of the enterprise data market. The carrier last month acquired U.S.-based Ethernet service provider Yipes Enterprise Services Inc. , which will extend its international reach using FLAG Telecom's network. (See Reliance Bags Yipes for $300M.)
According to the statement released by FLAG today, Fujitsu has been awarded supply contracts for the networks connecting India to Hong Kong and Egypt to France, with possible interconnection to other countries in those regions. It has also received a so-called "letter of intent" for the systems in East Africa and the Pacific and will receive the supply contracts at a later date.
Fujitsu’s win is a blow to rival Alcatel-Lucent (NYSE: ALU - message board), which deployed FLAG’s Falcon cable system connecting India with the Middle East, as well as its cables in the Atlantic and North Asia. (See FLAG Picks Alcatel for Subsea Cable.)
Fujitsu also beat out Tyco Electronics and NEC Corp. (Nasdaq: NIPNY - message board; Tokyo: 6701). The equipment vendor's share price closed 1.26 percent higher at 801 yen on the Tokyo exchange.
The Japanese firm has also signed a deal to help Pacific Crossing cope with the continuing rapid growth in data traffic volumes across the Asia/Pacific region. (See Fujitsu Wins PC-1 Deal.)
Under the agreement, Fujitsu will add 200 Gbit/s of capacity on each of the four segments of Pacific Crossing's PC-1 cable connecting Japan and the U.S. That will boost the lit capacity of PC-1 to at least 390 Gbit/s on each segment by the first quarter of 2008. The deal includes an option for an additional 100 Gbit/s by the second quarter. Pacific Crossing raised $50 million in January to help finance the upgrade. (See PCL Raises $50M.)
The Asia/Pacific region has seen plenty of subsea activity in recent months: Alcatel-Lucent won a deal to upgrade Southern Cross Cables Ltd. 's network linking Australia, New Zealand, and the U.S.; Fujitsu was awarded a contract to upgrade the Japan-US Cable Network; a group of 17 carriers and government bodies has announced plans to build a $500 million Asia-America Gateway; and Telstra Corp. (Pink Sheets: TLSYY - message board) selected Alcatel-Lucent to lay a new submarine cable network directly linking Sydney to Hawaii. (See Southern Cross Picks AlcaLu, Fujitsu Wins Japan-US Cable Deal, Carriers Plan $500M Transpacific Link, Telstra Picks ALU for Subsea.)
— Nicole Willing, Reporter, Light Reading