The company will provide and install two transatlantic telecommunications cables for Flag Atlantic, a joint venture between Flag Telecom and Global TeleSystems Group. The value is in excess of $500 million, people familiar said. It will also sell switching equipment to France Telecom in a deal worth as much as $377 million, sources said.
Flag Telecom and Alcatel officials declined to comment. France Telecom officials didn't return calls.
Alcatel is focusing on supplying equipment to companies which provide business and residential customers with Internet access and data transmission to make up for slowing sales in traditional phone gear. It's also investing in its cable unit, saying last week that it will buy two cable ships for $80 million to meet the growing demand for undersea fiber-optic networks.
Alcatel will supply France Telecom with a switching and routing system called the Alcatel 1000 MM for the national phone firm's domestic and international operations. The 1000 system permits faster switching and routing of voice and data traffic, helping Europe's second-largest phone company vie for Internet and multimedia customers.
Phone companies are upgrading their systems as they face increasing competition from cable companies that are starting to offer telephone, TV, and Internet services via cable.
Bermuda-based Flag Telecom provides capacity for other telecommunications companies and service providers. McLean, Virginia-based Global TeleSystems is a phone company backed by billionaire George Soros.
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