China Netcom will purchase four sets of wavebands from Asia Global Crossing (AGC) in a deal that enables the new broadband carrier to provide the largest data capacity in China.
The purchase - which includes a four gigabits per second (Gbps) wavelength connecting Hong Kong and Los Angeles - was made in preparation for the surge of data traffic expected after China enters the World Trade Organisation.
'China Netcom is dedicated to building the infrastructure for China's new economy,' said chief executive Edward Tian. 'To do this, one of our business strategies is to work with market leaders in the global telecommunications market.'
Vice-president of business development and strategic planning at AGC, Anthony Christie, said: 'This is the largest capacity available in China today, it is also the largest wavelength purchase made by the local carrier. It offers remendous benefits for both sides.'
In a separate transaction, both companies arranged to allow AGC to interconnect 2.5 gbps of capacity with China Netcom's domestic network, CNCNet. That will enable the New York Stock Exchange-listed undersea cable operator to provide data services in China.
'AGC will now be able to offer services into three of China's most important centres, Beijing, Shanghai, and Guangzhou, thereby extending our network to mainland China,' said chief executive John Legere.