The Company is now proceeding with the establishment of a facilities-based international telecommunications network pursuant to its licence. TBI will compete with the incumbent monopoly carrier, Cable & Wireless ("C&W") in Bermuda and will create a major transit hub in Bermuda to handle the growing Internet, private data networks and voice services throughout the Atlantic Ocean Region.
The initial equity funding will allow the Company to implement its network infrastructure including 1) the first phase of a trans-Atlantic submarine fibre optic cable system, connecting Bermuda with Tuckerton, New Jersey; 2) the installation of a Northern Telecom 250/300 international gateway switch; ans 3) the installation of a standard €˜B' Intelsat approved satellite earth station facility. "This will allow TBI to start operating on a level playing field with C&W, competing for the approximately US$100 Million annual Bermudian market, and set the stage for Bermuda to become a major transit hub", said Michael Kedar, Chairman & CEO.
The company is planning to commence commercial service in Bermuda late this year providing
international voice and data services to the growing Bermuda market. "With the growing demand for trans-Atlantic telecommunications traffic, particularly, the Internet, multi-media and facsimile
services, which are growing at over 25% annually, we see Bermuda as a major port for off-shore electronic transactions in an advantageous tax environment which should provide significant incremental growth for Bermuda's telecommunications industry", said Mr. Kedar.
The first phase of the fibre cable system is scheduled to be operational by October 1997. The cable, called BUS-1, will have an initial capacity of 2.5 Gbts/sec (capable of handling up to 120,000 simultaneous voice conversations) and is upgradeable to 40 Gbts/sec which would create the highest capacity of calls across the Atlantic.
The Company will be listed on the BSX under the "TBI" symbol and will apply for a Toronto Stock Exchange ("TSE") listing in the very near future.