| Taking another step in its international expansion efforts, Internet hosting and management company Exodus Communications Inc. Monday spent $105 million to buy international network capacity from a Global Crossing Ltd. subsidiary.
Exodus
(EXDS) plans to use the capacity to expand its operations in Europe and launch its services in Japan. The purchase will also support the company's current offerings in the U.S.
Under the terms of the deal, Global Crossing (GBLX) will offer Exodus an additional 5.1 gigabits per second of backbone network capacity
connecting future Exodus Internet data centers in the three regions.
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Global Crossing will supply STM-1 circuits, an STM-1 ring, and an OC12c service to connect Exodus' New York center to Frankfurt and London; to tie its London, Amsterdam, Frankfurt and Paris Centers in Europe; and to link its domestic centers in Los Angeles, Austin, Dallas, Atlanta, and Washington D.C.
The additional capacity will allow traffic growth between Exodus' network and the Internet.
"This agreement with Global Crossing lays the foundation for our international IDC network expansion plans, and provides Exodus with increased capacity, enabling us to continue to deliver scalability, high availability and performance of mission-critical Internet operations," said Ellen M. Hancock, Exodus' president and CEO.
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Global Crossing's network plans extends over five continents to cater to 80 percent of the world's Internet and data traffic. The company's mid-Atlantic and pan-European crossings are expected to be complete in the next year. Its recently announced South American crossing is expected to be operational by 2001.
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