BEIJING -- Verizon Business today signed a construction and maintenance agreement with a consortium that includes China Telecom and China Netcom to build the first next-generation undersea optical cable system directly linking the U.S. mainland and China.The new system, to be named Trans-Pacific Express (TPE), will use the latest optical technology to provide greater capacity and higher speeds to meet the dramatic increase in demand for IP, data and voice communications with the Asia-Pacific region.

The new fiber-optic cable can support the equivalent of 62 million simultaneous phone calls, more than 60 times the overall capacity of the existing cable directly linking the United States and China.

While TPE will initially provide capacity of up to 1.28 terabits per second (Tbps), the system will have design capacity of up to 5.12 Tbps to support future Internet growth and advanced applications such as video and e-commerce. In another first, individual customers can access the cable system at wavelengths of up to 10 gigabits per second (Gbps), the equivalent of nearly 121,000 simultaneous phone calls.

Verizon Business is the only U.S.-based member among the initial parties of the consortium, which consists of -- in addition to China Telecom and China Netcom - China Unicom, Korea Telecom and Chunghwa Telecom (Taiwan). The TPE cable also provides more diversity from other undersea routes and more efficient connections to a number of countries in Asia where Verizon Business has large business customers.

"This state-of-the-art cable will support high-speed traffic to the world's fastest-growing region -- the Asia-Pacific," said Fred Briggs, Verizon Business executive vice president of operations and technology. "Our leadership in this project builds on our important existing relationships in China, further recognizes the emergence of China as a diverse communications hub for Asia, and reflects our company's commitment to help U.S. and other global companies compete worldwide."

Construction of the new cable system, which will extend more than 18,000 kilometers, will begin in the first quarter of 2007. Completion is scheduled in the third quarter of 2008. The project represents an investment by consortium members of more than $500 million (U.S.).

"In addition to a diverse route directly to China, this cable will add capacity and the higher-speed service customers are demanding," Briggs said. "We also will improve provisioning intervals and reduce latency for traffic between the United States and many countries in the region."

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