Construction and Maintenance Agreement for China-US Undersea Cable Network

On December 11 (Washington D.C. time), the Construction and Maintenance Agreement (C&MA) for the construction of China-US undersea fiber-optic cable network (China-US Cable Network) was executed by the initial parties including AT&T, China Telecom, Chunghua Telecom, Korea Telecom, NTT, etc..

Preceding this Agreement, Memorandum of Understanding was signed on March 30, 1997, in Beijing, China.

The China-US Undersea Cable Network will cover total length of approximately 30,000 km in a ring topology of four fiber pairs, and connect Japan, the United States, China, Korea and Taiwan. The cable has a capacity of 80Gbps, equal to 967,680 circuits of 64 kbps each, enabling the simultaneous transfer of approximately 4 million telephone connections of 16 kbps each.

This is the largest network of its kind in the world, aiming at meeting the growing demand for international telecommunications among Asia-Pacific countries. The network incorporates the latest technologies - for example, the ability to instantly re-route communications in case of emergency.

Outlines of the China-US Cable Network Project

1. Consortium
Members who hold voting rights (14 total): NTT Worldwide Network Corp., AT&T, China Telecom, Hong Kong Telecom, Kokusai Denshin Denwa, Korea Telecom, Chungwa Telecom, MCI Communications Corp., SBC Communications Inc., Singapore Telecom, Spring Corp., Telekom Malaysia, Teleglobe USA, Telstra Corp.

The above consortium members have an equal stake and joint financial responsibility for network oversight, maintenance and administration.

2. Construction Cost: Approximately US$1.1 billion
3. Commencement of Service: End of 1999 (planned)
4. Landing Stations:

5. Construction Plans
Construction of the China-US Undersea Cable Network will begin once the necessary permits have been obtained and the Network is expected to be ready for service by the end of 1999.

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