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Southern Cross Achieves Additional US$443m Sales

12 February 2001 Media Statement from Southern Cross Cable Network


Southern Cross Cable Network today announced additional capacity sales of US$443 million resulting from its third customer meeting in Hawaii last August. This brings the company's total capacity sales to over US$1.6 billion.

"Our continued improvement in purchase terms and price protection has again resulted in tremendous support from our customers," says Ross Pfeffer, Director, Asia Pacific Market for Southern Cross. "This has allowed our customers to secure the bandwidth they need to take advantage of the rapidly increasing demand for broadband Internet services between Australasia and the United States." The continued strength of customer support for Southern Cross has allowed the company to adopt a new higher-capacity Dense Wave Division Multiplexing (DWDM) technology that is four times faster than that currently being used by Southern Cross.

"Our suppliers, Alcatel and Fujitsu, have confirmed the potential for total protected network capacity to be increased from 120 Gbit/s to 480 Gbit/s," says Mr Pfeffer. "This will provide both Southern Cross and our customers with exciting new opportunities."

"When Southern Cross entered into service in November 2000 we expected capacity to be exhausted by end-2002. We now have the ability to provide for the Internet bandwidth needs of the region for the next four or five years," says Mr Pfeffer.

Southern Cross will initially apply the higher capacity DWDM technology only to its third fibre pair, which is scheduled to be equipped early in 2002. This will take total network capacity to 240 Gbit/s.

Southern Cross has already committed to equipment for the first and second fibre pairs, but will continue to monitor demand so that future decisions can be made on when to upgrade these to the higher capacity DWDM technology - achieving full network capacity of 480 Gbit/s - in order to continue to satisfy market growth.


Southern Cross also announced today that its second Hawaii-mainland US link will enter into service on 4 March 2001 to complete the 30,500km loop network. This milestone follows the landing of the cable at Morro Bay, California on 30 January and the successful laying of the 9km shore end.

"From 4 March Southern Cross will be the only network delivering fully protected capacity on the most direct route between Australasia and the USA, fulfilling our original dream and ensuring the continuity of service demanded by customers in the online age," says Mr Pfeffer.

- ENDS -

For further information contact: Philip Clark Media Contact Southern Cross Cable Network Tel +64-9-309-1494 Mob +64-25-856-040

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