Group Telecom Announces 360networks Fiber Deal

GT to purchase approximately C$352 million of fiber and assets

March 23, 2000

1 Min Read

TORONTO, ONTARIO--GT Group Telecom Inc. (NASDQ: GTTLB), (TSE: GTG.B) today announced that it has entered into a broad-ranging agreement with 360networks inc. (formerly Worldwide Fiber Inc.) to purchase approximately C$352 million of fibre optics and high-speed bandwidth network assets. In addition, Group Telecom will make an equity investment in 360networks of approximately C$50 million.

Under the agreement, 360networks will, over a period of time, provide Group Telecom 12 strands of fibre optics stretching more than 7,000 kilometers between Seattle and Halifax via Victoria, Vancouver, Kamloops, Edmonton, Calgary, Regina, Winnipeg, Toronto, Ottawa, Montreal and Quebec City. An additional indefeasible right of use (IRU) will provide Group Telecom with 12 additional fibres stretching approximately 7,900 kilometers in the United States from Seattle to Sacramento, Denver, Chicago, Detroit, Toronto, Buffalo, Albany, New York, Boston and Montreal. Group Telecom also has the option to purchase additional segments connecting the United States and Canada.

360networks will also provide Group Telecom up to four OC-48 channels on a long-term basis between Vancouver and Toronto, capable of collectively transmitting data at up to 10 gigabits per second.

"This transaction allows us to significantly enhance and expand Group Telecom's fibre optic network to include originating and terminating cross-border traffic," said Dan Milliard, CEO of Group Telecom. "Through this agreement, we will further increase our significant bandwidth capabilities and broadband Internet offerings to our business customers across Canada." "360networks advanced network architecture will enable Group Telecom to expand its network cost-efficiently and offer leading-edge telecommunications solutions," said Greg Maffei, chief executive officer of 360networks.

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