Eventually, everything heads south

As undersea fiber optic routes get hotter, the attraction to build them is getting even more steamy. GlobeNet Communications Group last week announced plans to head into Latin America with a $1 billion investment. GlobeNet's Atlantica-1 will provide a private cable system connecting North and South America .

Through its subsidiary TeleBermuda, GlobeNet has an existing undersea link between New Jersey and Bermuda. The new planned 1.28 terabit undersea link will extend south from Bermuda along the coast of South America and interconnect with several existing and planned cable systems. The first leg from Bermuda to Brazil and Venezuela is planned for service in October 2000.

"By December 2000, we will complete the ring through Boca Raton, Fla., and from there, back to New Jersey," said Mike Kedar, CEO of GlobeNet. After that, GlobeNet will start a South American ring from Fortaleza, Brazil, to Rio de Janeiro and back to Fortaleza to provide the east coast link, Kedar said.

"This appears to be a very logical market strategy, and they are hitting all of the major points along Latin America," said Juan Fernandez, research analyst with Frost & Sullivan. "They are taking a fairly safe route to cities with the highest concentration of capital and economic opportunity."

Kedar pointed to the lack of capacity traveling north and south and the explosion of demand as the primary drivers for starting its network in Latin America.

Executives aren't commenting on funding for the links, but Alcatel will provide and install the cable, amplifiers and terminating equipment.