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Global Crossing Prepared to Optimize New Federal Broadband Funds
- Company working with rural carriers, universities, and healthcare providers to identify opportunities.
- Global Crossing recommends the creation of a marketplace exchange for applicant partnerships.
Florham Park, N.J. - April 8, 2009 -- Global Crossing (NASDAQ: GLBC), a leading global IP solutions provider, today announced several steps it is taking to optimize opportunities under the $7.2 billion Federal stimulus programs aimed at expanding broadband deployment. In a letter to the National Telecommunications and Information Administration (NTIA) and U.S. Department of Agriculture (USDA), the two organizations that oversee distribution of the grant and loan monies made available under the American Recovery and Reinvestment Act (ARRA), Global Crossing stated its desire to assist with plans to develop and expand broadband services to unserved and underserved areas by expanding its world-class fiber optic network to support "middle-mile" facilities that connect rural last-mile broadband providers to the Internet backbone.
The ARRA was signed into law by President Obama on February 17, 2009. The Act includes $7.2 billion in grants and loans aimed at expanding and modernizing key infrastructure, such as increasing broadband access to unserved or underserved areas. Approximately $4.7 billion will be administered by the National Telecommunications and Information Administration (NTIA) and an additional $2.5 billion will be administered by the U.S. Department of Agriculture's rural development program.
Currently, parts of the United States are unserved or underserved with regard to broadband access to the Internet. Many of these areas have a single path connecting an end-user to the Internet. This connection is made from the user's location via a rural carrier through a middle-mile facility and eventually terminates at a physical access point to the Internet, also called a point of presence or POP. Not surprisingly, these middle-mile connections are out of date, costly and inhibit the growth of broadband speed and capacity in the last mile of connection.
Global Crossing urged the NTIA and USDA to establish a process whereby last-mile providers and middle-mile providers such as Global Crossing can be paired in support of a more complete effort to provide broadband service to unserved areas. This would greatly enhance the effectiveness of the Broadband Technology Opportunity Program (BTOP) and rural broadband grant and loan programs and avoid funds going to purely speculative ventures, the company said.
"Global Crossing stands ready to optimize opportunities under NTIA's Broadband Technology Opportunity Program and the USDA's rural broadband program by providing targeted middle-mile facilities," said Paul Kouroupas, vice president and senior counsel, Global Crossing. "Middle-mile facilities can comprise the majority of costs associated with broadband deployment in rural areas, so it is important for the government to be reasonably assured that there are affordable middle-mile services available to the last-mile projects funded under the programs."
In addition, Global Crossing's letter to NTIA and the USDA states that the company is currently working with existing rural carriers to identify potential middle-mile routes that would benefit by receiving funds from the program.
"Global Crossing is a Tier 1 Internet backbone operator with substantial investment in telecommunications networks in the United States and around the world. The company is equipped to make investments in middle-mile facilities to enable enhanced speed, access and service to more parts of the U.S.," Kouroupas said.
ABOUT GLOBAL CROSSING
Global Crossing (NASDAQ: GLBC) is a leading global IP solutions provider with the world's first integrated global IP-based network. The company offers a full range of secure data, voice, and video products to approximately 40 percent of the Fortune 500, as well as to 700 carriers, mobile operators and ISPs. It delivers services to more than 690 cities in more than 60 countries and six continents around the globe.
Please visit www.globalcrossing.com or blogs.globalcrossing.com for more information about Global Crossing.
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Statements in this press release about expected future events and financial results are forward-looking and subject to risks and uncertainties that could cause the actual results to differ materially, including risks referenced from time to time in the company's filings with the Securities and Exchange Commission. Global Crossing undertakes no duty to update information contained in this press release or in other public disclosures at any time.
CONTACT GLOBAL CROSSING:
Press Contacts
Michael Schneider
+ 1 973 937 0146
michael.schneider@globalcrossing.com
Analysts/Investors Contact
Suzanne Lipton
+ 1 800 836 0342
glbc@globalcrossing.com
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