Coming to America - again

Since Global One lost its U.S. connection when Sprint sold its share of the global service provider to partners Deutsche Telekom and France Telecom in January, Global One has been itching to get back into the U.S. market. Last week, Global One took the first step in making its U.S. presence known by partnering with Intermedia Communications to offer Intermedia's international corporate customers data and IP services in the U.S.

Now owned entirely by France Telecom, Global One is building out its own ATM network to 20 cities across the country. But as a stopgap solution for faster time to market, the company partnered with Intermedia to carry its international traffic into the U.S.

"Our agreement with Intermedia offers us immediate use of a reliable network backbone and leading-edge technology and the domestic reach to respond to our business customer needs," said Detlef Spang, vice president and general manager of the Americas region for Global One. >From a marking and geographic perspective, the two companies are a perfect fit, Spang said.

"We're bringing to Intermedia a global network; they're bringing to us a domestic network," he said.

According to the three-year agreement, Global One will interconnect its international ATM network to Intermedia's U.S. network, enabling its global enterprise customers access to network services such as frame relay, ATM and IP.

"It's a logical choice," said Blaik Kirby, vice president for Renaissance Strategy. "Intermedia has one of the largest frame relay networks in the country."

The Intermedia partnership is just the first step in Global One's overall plans to become a strong global player that can compete with AT&T or BT, Kirby said.

"They'd have to have sizable facilities in the U.S.," he said. "Intermedia wouldn't give them that."

Instead, Global One would have to merge or partner with one of the major U.S. carriers, Kirby said.

"Global One has a huge gap in the U.S.," he said. "Intermedia is an interim solution."

While Global One would not comment further on its acquisition or expansion plans, it plans to open sales offices in 12 cities across the country by the end of the year. Global One also may consider Intermedia a likely candidate for future acquisition, Kirby said. "It would help both companies in the future," he said.

In addition to generating new revenue by carrying Global One's traffic, Intermedia believes it will reap other benefits from the deal. Officials express hope the relationship will allow Intermedia's current customer base of small and medium-sized businesses to include multinational corporations in the U.S. and abroad, opening a new market for the service provider.

"Intermedia will now be providing its services, through Global One, to some of the largest Fortune 500 companies in the world," said David Ruberg, president and CEO of Intermedia.

While Intermedia now serves two markets - the high-end market, with partners such as Bell Atlantic, and the small and medium-sized business market - the latter does not have many international requirements. But as small and medium-sized businesses develop international requirements and the market evolves, Intermedia will be able to use Global One's network services overseas, Ruberg said.

Separately, Intermedia denied recent rumors that Cincinnati-based Broadwing was negotiating to acquire the company.

"They are just that - rumors," said a spokesman for Intermedia.