Equant Completes Integration Of Its Merged Global Network Two Months Ahead Of Scedule
Announcement posted by Equant 02 Jul 2002
Final milestone of Equant-Global One merger is announced on transactions first anniversary
Equant (NYSE: ENT) (Euronext Paris: EQU), an industry leader in global IP and data services for multinational businesses, announced that it has completed the integration of the former Equant and Global One worldwide networks. The final integration of the two networks comes two months ahead of schedule and coincides with the one-year anniversary of the transaction in which Equant and Global One merged.
We are pleased to announce on the first anniversary of the Equant-Global One merger that the integration of the network, organization and processes of the two companies is now complete, said Didier Delepine, president and CEO of Equant. However, optimization and continuous streamlining of our operations to gain increased efficiency is a permanent effort. In these turbulent times, Equants focused business model, minimal debt and conservative fiscal practices will continue to provide stability and a foundation for growth.
The integration process has been a success for Equant and its customers by significantly extending network density, while reducing operating costs, said Jack Norris, Equants head of Customer Service and Network. The steps we have taken, including adding significant back-up capacity and new access methods, have given customers greater security and flexibility and contributed to the continuing recognition that our network is one of the most robust and reliable networks in the industry.
In addition to completing the integration of two global data networks,
Equant achieved the following milestones during the past year:
. Created a single sales force and unifed product portfolio.
.Achieving its 2001 financial targets and ending the year with net cash available.
.Announced the 500th customer and more than 12,000 customer locations for Equants flagship IP VPN solution.
. Launched the industrys first desktop-to-desktop, carrier-grade IP Telephony solution, with global availability and deployment already by three large customers.
. Earned top honors in the April 2002 Telemark IP customer satisfaction survey, winning eight Telemark Gold Awards.
. Earned major awards from Frost & Sullivan for Equant IP VPN, Equant Voice for IP VPN, Equant IP Telephony, and Equant managed security services.
. Expect annualized operating cost savings of $350 million by 2003.
In what is arguably the most difficult year in the history of the telecommunications industry, Equant is one of the few companies that has not only survived, but seems to be thriving, said telecom industry observer Jeff Kagan. They kept their eye on the ball and stayed focused both on completing the merger and expanding their relationships with multinational companies which has paid off during a year when some competitors have struggled or failed.
Completion of the network integration last month in Europe helped to ensure the added capacity Equant may need if the KPNQwest network is shut down. Equant has added the equivalent of 75,000 kilometers of STM-1s Synchronous Transfer Module cables carrying data at 155 Mbps each for back-up capacity that will permit it to reroute any customer traffic affected by such a network shutdown in Europe.
Unification of the Equant and Global One networks is expected to generate more than 50 percent of the $350 million in annualized operating cost savings targeted for 2003. Transmission and site costs, for example, have been dropping substantially as the two networks have become one and the total number of network sites is reduced. A total of about 70 duplicative network sites are scheduled for closure by the end of 2002. In addition, Equant has integrated its formerly separate fiber capacity and is leveraging the fiber assets of France Telecom, which has major stakes in the principal underseas cables ventures and operates continental fiber optic backbones in Europe and North America.
The fact that the former Equant and Global One networks were both based on similar Nortel and Cisco technologies greatly facilitated the integration. Equants extensive network connecting key business centers in more than 220 countries and territories also proved an ideal fit with the denser 70-country Global One worldwide network. The strong national coverage by Global One in several countries brings points of presence (POPs) closer to Equant customers.
About Equant
Equant (NYSE: ENT) (Euronext Paris: EQU) is a recognized industry leader in global IP and data services for multinational businesses, offering network, integration and managed services to global business. The network has unmatched seamless global reach, connecting key business centers in 220 countries and territories, with local support in 145 countries and territories. Building on more than 50 years of experience in data communications, Equant serves thousands of the worlds top companies. Equant, a member of the France Telecom Group, meets the diverse needs of global companies with the industrys most extensive portfolio of managed data network services. Equants 2001 revenues, on a pro forma basis, were more than $3 billion.
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This release may contain projections or other forward-looking statements related to Equant that involve risks and uncertainties. Readers are cautioned that these statements are only predictions and may differ materially from actual future results or events. Readers are referred to the documents filed by Equant with the SEC, specifically the most recent filing on Form 20-F and the submission on Form 6-K containing the shareholders circular, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including, among other things, risks relating to Equants history of operating losses, the unpredictability of growth in Equants markets, Equant s rapid growth, changing technology, uncertain and changing regulatory restrictions, Equants international operations, dependence on suppliers, network security issues, competition, and volatility of Equants stock price and risks relating to the combination with Global One. All forward-looking statements are based on information available to Equant on the date hereof, and Equant assumes no obligation to update such statements.
We are pleased to announce on the first anniversary of the Equant-Global One merger that the integration of the network, organization and processes of the two companies is now complete, said Didier Delepine, president and CEO of Equant. However, optimization and continuous streamlining of our operations to gain increased efficiency is a permanent effort. In these turbulent times, Equants focused business model, minimal debt and conservative fiscal practices will continue to provide stability and a foundation for growth.
The integration process has been a success for Equant and its customers by significantly extending network density, while reducing operating costs, said Jack Norris, Equants head of Customer Service and Network. The steps we have taken, including adding significant back-up capacity and new access methods, have given customers greater security and flexibility and contributed to the continuing recognition that our network is one of the most robust and reliable networks in the industry.
In addition to completing the integration of two global data networks,
Equant achieved the following milestones during the past year:
. Created a single sales force and unifed product portfolio.
.Achieving its 2001 financial targets and ending the year with net cash available.
.Announced the 500th customer and more than 12,000 customer locations for Equants flagship IP VPN solution.
. Launched the industrys first desktop-to-desktop, carrier-grade IP Telephony solution, with global availability and deployment already by three large customers.
. Earned top honors in the April 2002 Telemark IP customer satisfaction survey, winning eight Telemark Gold Awards.
. Earned major awards from Frost & Sullivan for Equant IP VPN, Equant Voice for IP VPN, Equant IP Telephony, and Equant managed security services.
. Expect annualized operating cost savings of $350 million by 2003.
In what is arguably the most difficult year in the history of the telecommunications industry, Equant is one of the few companies that has not only survived, but seems to be thriving, said telecom industry observer Jeff Kagan. They kept their eye on the ball and stayed focused both on completing the merger and expanding their relationships with multinational companies which has paid off during a year when some competitors have struggled or failed.
Completion of the network integration last month in Europe helped to ensure the added capacity Equant may need if the KPNQwest network is shut down. Equant has added the equivalent of 75,000 kilometers of STM-1s Synchronous Transfer Module cables carrying data at 155 Mbps each for back-up capacity that will permit it to reroute any customer traffic affected by such a network shutdown in Europe.
Unification of the Equant and Global One networks is expected to generate more than 50 percent of the $350 million in annualized operating cost savings targeted for 2003. Transmission and site costs, for example, have been dropping substantially as the two networks have become one and the total number of network sites is reduced. A total of about 70 duplicative network sites are scheduled for closure by the end of 2002. In addition, Equant has integrated its formerly separate fiber capacity and is leveraging the fiber assets of France Telecom, which has major stakes in the principal underseas cables ventures and operates continental fiber optic backbones in Europe and North America.
The fact that the former Equant and Global One networks were both based on similar Nortel and Cisco technologies greatly facilitated the integration. Equants extensive network connecting key business centers in more than 220 countries and territories also proved an ideal fit with the denser 70-country Global One worldwide network. The strong national coverage by Global One in several countries brings points of presence (POPs) closer to Equant customers.
About Equant
Equant (NYSE: ENT) (Euronext Paris: EQU) is a recognized industry leader in global IP and data services for multinational businesses, offering network, integration and managed services to global business. The network has unmatched seamless global reach, connecting key business centers in 220 countries and territories, with local support in 145 countries and territories. Building on more than 50 years of experience in data communications, Equant serves thousands of the worlds top companies. Equant, a member of the France Telecom Group, meets the diverse needs of global companies with the industrys most extensive portfolio of managed data network services. Equants 2001 revenues, on a pro forma basis, were more than $3 billion.
###
This release may contain projections or other forward-looking statements related to Equant that involve risks and uncertainties. Readers are cautioned that these statements are only predictions and may differ materially from actual future results or events. Readers are referred to the documents filed by Equant with the SEC, specifically the most recent filing on Form 20-F and the submission on Form 6-K containing the shareholders circular, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including, among other things, risks relating to Equants history of operating losses, the unpredictability of growth in Equants markets, Equant s rapid growth, changing technology, uncertain and changing regulatory restrictions, Equants international operations, dependence on suppliers, network security issues, competition, and volatility of Equants stock price and risks relating to the combination with Global One. All forward-looking statements are based on information available to Equant on the date hereof, and Equant assumes no obligation to update such statements.