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Home > Products > Networking > Submarine Systems > News > Archive > NEC Signed the Construction Contract of East Asia Crossing Phase 2 - $475M Submarine Cable Project -
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NEC Signed the Construction Contract of East Asia Crossing Phase 2
- $475M Submarine Cable Project -

October 18, 2000

TTOKYO JAPAN, OCTOBER 18, 2000--NEC Corporation (NASDAQ:NIPTY) (FTSE: 6701q.1) (TSE: 6701) announced today that it has signed on the 13th of October, the construction contract with Asia Global Crossing Ltd. (NASDAQ: AGCX) for the Phase 2 of East Asia Crossing Submarine Cable System Project, that will connect Hong Kong, Malaysia, Singapore, the Philippines and Taiwan. The contract is worth approximately $475 million on a turnkey basis.

Upon completion, East Asia Crossing will be connecting Japan, Taiwan, Korea, Hong Kong, Singapore, Malaysia and the Philippines. At a design capacity of 2.56 terabits, East Asia Crossing will be the fastest system deployed in the region.

In addition to providing pan-Asia connectivity, East Asia Crossing will also provide seamless global connectivity by linking with Asia Global Crossing's submarine cable system, Pacific Crossing, the only non-consortia link in service between the U.S. and Japan; Global Access Limited, a 1,560 route kilometer Japanese terrestrial network; and the rest of the Global Crossing Network, which will link more than 200 major cities worldwide.

Under the terms of the contract, NEC will deliver Phase 2 connecting Hong Kong to Singapore in ready-for-service condition in the fourth quarter of 2001. Phase 2 will add about 7,900 kilometers of undersea fiber optic cable to the system, bringing East Asia Crossing together with Phase 1, to approximately 19,500 kilometers. East Asia Crossing will incorporate four fiber pairs with state-of-the-art dense wavelength division multiplexing (DWDM) technology, to form multiple self-healing rings, providing internal restoration capability in the event of a link outage.

"The contracting of Phase 2 of East Asia Crossing to NEC, a company with an excellent record, demonstrates Asia Global Crossing's commitment to be the first to connect the fast-growing markets of East Asia - Japan, Taiwan, Korea, Singapore, Malaysia, the Philippines, Hong Kong, and China. With confirmed construction and delivery dates, something that no other announced pan-Asian system can claim at this time, East Asia Crossing will be the first system to serve the entire region." said John Legere, Asia Global Crossing chief executive officer. "For the first time, not only will the important business centers of Asia will have unprecedented access to each other, but to all the major business centers globally because of the seamless integration with the worldwide Global Crossing Network. For enterprises doing business within Asia or between Asia and the rest of the world, East Asia Crossing will be the first and fastest connectivity solution."

"The arrival of the Internet is bringing millions of people in East Asia into daily contact with information technology and generating a new information infrastructure organized around mobile and broadband networks." said Dr. Mineo Sugiyama, Senior Executive Vice President of NEC Corporation and also Company President of NEC Networks. "This contract to construct Phase 2 of East Asia Crossing is a great opportunity for NEC to help build the future of Asia's emerging Internet society and to help connect Asia seamlessly to the global economy."

About NEC

NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.l) (TYSE: 6701) is a leading provider of Internet solutions, dedicated to meeting the specialized needs of its customers in the key computer, network and electron device fields through its three market-focused in-house companies: NEC Solutions, NEC Networks and NEC Electron Devices. NEC Corporation, with its in-house companies, employs more than 150,000 people worldwide and saw net sales of 4,991 billion Yen (approx. US$48 billion) in fiscal year 1999-2000. For further information, please visit the NEC at on its home page.

NEC has been supplying submarine cable systems for more than 25 years. In particular, it has been involved in the installation of most cable systems constructed in the ASEAN region. In the Pacific region, the company has installed several trans-oceanic submarine cables with self-healing restoration technology, NEC is involved in the construction of such huge networks as the China - US, Japan - US Cable systems, APCN2 and Australia-Japan Cable System.

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