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Global Crossing Announces Framework Agreement to Supply NATO
Added: (Wed Jul 25 2001)
· Enables Global Crossing to become a prime supplier to NATO for cross-border IP connectivity and services
· NATO and US Department of Defense agreements position Global Crossing to be a premier provider to the defence sector world-wide
· Exploits seamless reach of the global IP-based 100,000 route mile network
London - July 25, 2001: Global Crossing Ltd. (NYSE: GX) today announced that it has signed a framework agreement with NATO’s Consultation, Command and Control Agency that qualifies it as a bidder to provide wide area network, video, voice and IP data communications services to NATO (North Atlantic Treaty Organisation) member countries and signatories to the Partnership for Peace Agreement.
Global Crossing now has the ability to provide 46 Governments access to the world's most extensive global IP-based fibre-optic network through the approved supplier agreement. The framework contract, known as a Basic Ordering Agreement, enables government agencies and Global Crossing to streamline the contracting process for the procurement of services and solutions quickly and affordably. The agreement also opens the door for Global Crossing's Solutions division to bid for major outsourcing projects in collaboration with systems integrators and vendors that are accredited suppliers to NATO.
The agreement with NATO comes soon after Global Crossing's selection by the US Department of Defense to provide advanced wide area network services for its Defense Research and Engineering Network (DREN). This contract is valued at $137 million over an initial three years but has the potential to exceed $400 if seven one-year options are exercised. Global Crossing will design, develop and manage a secure, virtual private network for DREN. Around 6,000 scientists and engineers at defence laboratories, test centres, universities and industry sites throughout the US and beyond will be able to communicate and collaborate in real time via the world's largest, single, contiguous fibre-optic network.
Mark Longstaff, director Government Markets, Europe, said: "Achieving approved supplier status in an exceptionally short period of time clears the way for Global Crossing to bid for contracts valued in excess of $100 million a year. Both the NATO and the US Department of Defence agreements signal that Global Crossing has a compelling proposition for defence forces and governments around the world. The range of broadband IP services delivered over a secure and high performance global fibre optic network provides the robust communications solutions that are central to effective government and to the operations of the armed forces. We look forward to forming a strong partnership with NATO to enhance operational communications, improve interoperability and expand connectivity globally."
Typical of the services provided under the framework agreement are an existing contract with NATO for international private circuits linking the UK to Norway, Denmark and Italy. The 2Mbit/s links will be used to link NATO’s sub-head quarters in London with bases in Stavangar in Norway, Milan in Italy and the RAF base at High Wycombe, UK, to Viborg in Denmark. The breadth of Global Crossing’s network has enabled NATO to streamline its procurement of international bandwidth. Global Crossing’s proposition of a single supplier for pan-European connectivity means NATO avoids the cost and complexity of sourcing capacity through multiple agreements with national operators.
By moving from the existing system of procuring circuit segments within national boundaries, on this contract alone, NATO is reducing its number of suppliers from five to one. Apart from cost reductions, added benefits include faster provisioning and greatly simplified billing. NATO will enjoy improved service levels as a result of end-to-end management and a single point of contact for ordering and fault reporting. NATO will benefit from commercial-level service agreements thanks to the high level of availability and resilience of the European network.
Global Crossing has extensive experience in the deployment of international telecommunications services in the government and defence sectors. The company is in the process of implementing an international network for the British Foreign and Commonwealth Office under a contract worth $230 million. The 10-year project will provide managed voice, data and messaging services to over 10,000 users in 240 embassies, consulates and high commissions world-wide.
In the defence arena, Global Crossing provides the Royal Air Force (RAF) with managed messaging and directory services to some 55,000 users at 70 RAF sites, including overseas bases such as Germany, the Falklands, Cyprus, Canada and Gibraltar. The flexible configuration of the system allows the RAF to extend messaging services to any field of operation world-wide. Global Crossing already has a substantial user base in the UK government sector, serving over 30 government departments with voice & data services via two major framework agreements – the Government Data Network and Metropolitan Telecommunications Services.
Note to Editors
The geographic scope of this agreement primarily extends to the following 19 member countries of NATO: Belgium, Canada, Czech Republic, Denmark, France, Germany, Greece, Hungary, Iceland, Italy, Luxembourg, The Netherlands, Norway, Poland, Portugal, Spain, Turkey, United Kingdom and the United States of America.
Additionally, the 27 nations defined as Partnership for Peace Countries under the agreement dated 10 January 1994, may also use this NATO agreement in order to purchase services from Global Crossing: These countries include: Albania, Armenia, Austria, Azerbaijan, Belarus, Bulgaria, Croatia, Estonia, Finland, Georgia, Ireland, Kazakhstan, Kyrgyz Republic, Latvia, Lithuania, Moldova, Romania, Russian Federation, Slovak Republic, Slovenia, Sweden, Switzerland, Tajikistan, Republic of Macedonia, Turkmenistan, Ukraine and Uzbekistan.
About Global Crossing
Global Crossing Ltd. (NYSE: GX) provides telecommunications solutions over the world's first integrated global IP-based network, which will have approximately 100,000 route miles, reaching 27 countries and more than 200 major cities. Global Crossing serves many of the world's largest corporations, providing a full range of managed data and voice products and services. Global Crossing operates throughout the Americas, Europe, and the Asia/Pacific region, and provides services in Asia through its subsidiary, Asia Global Crossing (NYSE: AX). Global Crossing Solutions provides integrated telecommunications solutions, including network outsourcing, to large global enterprises. Please visit www.globalcrossing.com or www.asiaglobalcrossing.com for more information.
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Statements made in this press release that state the Company's or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to complete systems within currently estimated time frames and budgets; the ability to compete effectively in a rapidly evolving and price competitive marketplace; possible reductions in demand for our products and services due to competition or changes in industry conditions; changes in the nature of telecommunications regulation in the United States and other countries; changes in business strategy; the successful integration of newly-acquired businesses; the impact of technological change; and other risks referenced from time to time in the Company's filings with the Securities and Exchange Commission.
About NATO C3 Agency
The NATO C3 Agency (Consultation, Command and Control) provides central planning, systems integration, design, systems engineering, technical support and configuration control for NATO C3 systems and installations. The Agency procures and implements projects assigned to it and provides scientific and technical advice and support to the Strategic Commanders, and other customers on matters pertaining to operational research, surveillance, air command and control (including theatre missile defence, electronic welfare and airborne early warning and control) and communications and information systems. Please visit www.nc3a.nato.int
Contact Global Crossing
Press
Mish Desmidt:
Tel: +44 (0)118 908 6788
Mobile: +44 (0)7771 66 84 38
mish.desmidt@globalcrossing.com
Valerie Weisenreder/Josephine Bowen
Bandwidth Consultancy
Tel:+44 20 7693 7000
valerie@bbpr.com
josephine@bbpr.com
Analysts / Investors
Ken Simril
+1 310 385 5200
investors@globalcrossing.com
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