London and Hong Kong, June 11, 2001 - FLAG Telecom and Level 3 Communications Holdings (Korea) Limited, a subsidiary of the global broadband infrastructure company Level 3 Communications, Inc.  today announced an agreement with Korea Telecom covering the construction and operation of a cable landing station in Pusan, Korea, for the broadband submarine cable system currently being developed by FLAG Telecom and Level 3. Construction of the cable landing station in Pusan is already underway and will be completed later this year.


Ed McCormack, Chief Operating Officer for FLAG Telecom, said: "This agreement with Korea Telecom marks another major step in our strategy to develop a low-cost, scaleable global IP network to support our expanding Network Services business. The FLAG North Asian Loop (FNAL) will offer multi-terabit, protected capacity to the Korean market, connecting to the United States through our planned FLAG Pacific-1 cable system and to the FLAG Europe-Asia cable in Hong Kong and Japan."

"We're very pleased to partner with Korea Telecom," said Steve Liddell, Chief Executive Officer of Level 3 Asia. "Korea Telecom is a solid, experienced company with a proven reputation and strong relationships in the Korean market. The landing of the cable system in Korea accelerates Level 3's ability to deliver cost-effective bandwidth services in this growing broadband market. We expect our fibre pairs on the cable system, which will link directly with the United States via the Japan-US cable system, to begin serving communications-intensive Korean customers early next year."

"This agreement with FLAG Telecom and Level 3 highlights our proactive approach to the local and global telecommunication markets. As we strive to connect Korea to the world and create a knowledge-based society, we are delighted to work with these industry leading partners to accelerate this," said Byung-Sup Jun, Vice President of Korea Telecom.

Earlier this year, FLAG Telecom and Level 3 announced they would collaborate on the development of a multi-terabit, intra-Asia submarine cable system. The eastern leg of the system, being built by Level 3, will connect Japan, Taiwan and Hong Kong. Level 3 has completed construction of the link between Hong Kong and Japan and is currently building segments connecting this link to Taiwan. The western leg of the system, being built by FLAG Telecom, will connect Hong Kong, Korea and Japan and is currently under construction. The entire cable system will contain six fibre pairs, span over 10,000 kilometres and have a maximum capacity of 2.4-3.8 Tbps*. Each company will own three fibre pairs on the completed system. Level 3's fibre pairs are branded as "Tiger"; FLAG Telecom's three fibre pairs are branded as "FNAL".

Korea Telecom has started construction of the cable landing station in Pusan, where the cable will land later this year. Once completed, the cable system is expected to provide Korean businesses and consumers with an abundant supply of affordable international broadband capacity, driving growth at all levels of the Korean broadband market.

Note:*With 6 fibre pairs, the cable system offers a maximum capacity of 2.4 terabits on its Hong Kong-Taiwan-Japan leg and 3.8 terabits on the second leg linking Japan, Korea and Hong Kong.

Source: FLAG Telecom