A new line is being built to speed Internet connections between the United States and Europe.
AT&T said today that a subsidiary will build an 8,300-mile fiber network linking the United States, Germany, and the United Kingdom.
The company's AT&T Submarine Systems subsidiary is building the network for Global Telesystem, a company sponsored by the Pacific Capital Group. Dubbed AC 1 for Atlantic Crossing 1, the system will be placed into service in two phases; the first is set for completion in May 1998 and the second for November 1998.
"New multimedia applications and Internet use, coupled with market changes driven by deregulation, have prompted a tremendous growth in telecom traffic in the North Atlantic region," William Carter, president of AT&T-SSI, said in a statement.
The company would not comment on financial terms.
AT&T is not alone in pursuing such projects. The proposed merger of its rival MCI Communications with British Telecom will create a giant global data network as well. The companies say their merger will result in the largest Net carrier in the world, shuttling an estimated 50 percent of the network's global traffic on its backbone.