WorldCom to push fiber across Europe
edward harroff
WorldCom Inc., in Jackson, MS, created at year-end 1996 by the merger of ldds WorldCom Inc. and mfs Communications Inc., plans to construct an all-fiber-optic network across Europe. The announcement comes on the heels of the company`s previously launched $500 million undersea fiber-optic cable system (code name "Gemini"), which links London and New York (see Lightwave, January 1997, page 1).
The first phase of the pan-European network will connect London, Amsterdam, Brussels, and Paris by year-end 1997 at a cost of $200 million. These initial branches will operate at 10 Gbits/sec, providing ample capacity for the predicted growth in high-bandwidth data and intra net/Internet traffic. Future extension of the network will inter connect all of WorldCom`s metro politan area networks in London, Paris, Stockholm, Am sterdam, Frankfurt, Zurich, Geneva, and Milan (see figure). Although the company would not discuss the schedule for completion of future phases, it said that the network will eventually accommodate 36-Gbit/sec transmission rates.
According to Graham Finnie, research director at Yankee Group Europe, as a result of the announcement, Europe`s long- distance carriers will likely lower the price of long-distance bandwidth. He notes that current European offerings command exorbitant rates when contrasted with those of comparable U.S. services. For example, an E1 (2.048-Mbit/sec) circuit from Paris to Rome (689 miles) is billed at more than 10 times the rate of a T1 (1.544-Mbit/sec) line leased from WorldCom between Chicago and New York (723 miles). Rates for domestic lines in Europe can be 3 to 10 times more than typical American rates.
Even after factoring in higher infrastructure costs, The Yankee Group predicts major price breaks for European long- distance bandwidth over the next year or two due to the efforts by alternative carriers such as WorldCom.
The pan-European fiber-optic network will be built using the same architecture as WorldCom`s metropolitan area networks--a series of resilient, fiber-optic, Synchronous Digital Hierarchy loops. The network will support multiple 2.5-Gbit/sec channels per fiber pair using wavelength- division multiplexing and optical amplifiers. This technology will support a capacity in the tens of gigabits per fiber pair and allow for rapid installation of additional capacity as customer demands increase.
The first phase of the network will include two submarine cables that will link the United Kingdom with The Netherlands and France via the English Channel. These cables will be installed in the third quarter of this year and will comprise a total of 48 fibers. Alcatel Submarine Networks is expected to serve as prime contractor for this effort, although a final contract agreement had not been reached at press time.
The timing of the network announcement reflects the approach of the next European telecommunications deregulation milestone of January 1, 1998, when European markets will finally be opened to full competition. WorldCom has recently received regulatory approval to build and operate national and international telecommunications networks in The Netherlands, Germany, France, Sweden, and United Kingdom. WorldCom expects that the new network will serve its typical customers and also other alternative long-distance carriers in these markets. Many analysts see the proposed WorldCom`s network topography as appealing, because there are more than 40 international carrier licensees in the United Kingdom alone.
However, WorldCom is not alone in positioning itself for the coming competitive era. There are other pan-European plans to build fiber-optic networks that use existing infrastructure like Hermes (a joint venture between gts and Hitrail), New Telco (a joint venture of Union Bank of Switzerland, Migros, BT, and sbb Swiss Railway), and TD Services (a joint venture of Cegetel and sncf French Railway. q
Edward Harroff writes on telecommunications issues from Bellevue, Switzerland.