chello broadband to Purchase Capacity on Flag Atlantic-1

Broadband internet service provider chello broadband n.v. (Amsterdam, The Netherlands) has signed a letter of intent (LOI) for capacity on the new Flag Atlantic-1 (FA-1) transatlantic cable system. FA-1, a 50-50 joint venture between Global TeleSystems Group Inc. (GTS; McLean, VA) and Bermuda-based Flag Telecom, will operate at 1.28 terabit/s and offer customers direct connectivity between New York, London, and Paris.

The LOI outlines the commitment by chello to purchase the equivalent of eight 155 Mbps STM1s on the FA-1 cable system. The link from New York to London and Paris will enable chello to offer service on a terabit dual cable system with more than 16 times the capacity of existing transatlantic cables. Operational in the fourth quarter 2000, the additional capacity will connect directly into Aorta, chello's own broadband network backbone, which also uses the GTS Carrier Services Trans European Network (TEN).