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Global Crossing to manage $1.28 billion Asian venture

Bermuda-based undersea cable operator Global Crossing Ltd. and its partners Microsoft Corp. and Japan's Softbank Corp. have outlined the structure of their $1.28 billion telecommunications network across Asia.

Global Crossing said it would be responsible for management and operation of the venture, known as East Asia Global Crossing.

In building the so-called East Asia Crossing network, the deal will initially link Japan, China, Singapore, Hong Kong, Taiwan, South Korea, Malaysia and the Philippines with broadband capabilities connecting it to Global Crossing's fibre-optic network serving the Americas and Europe.

Asia Global Crossing plans to build high-capacity city rings and land-based systems linking it with undersea cables to provide Asia with a seamless global network, the company said in a statement.

The joint venture also will offer services including Web hosting and electronic commerce.

Global Crossing has contributed its 57.75 percent share of Pacific Crossing 1 and its development rights in East Asia Crossing to the venture.

Softbank and Microsoft each contributed $175 million cash to Asia Global Crossing.

Global Crossing said it intended to integrate into Asia Global Crossing its 50 percent share in the Hutchison Global Crossing joint venture in Hong Kong.

Global Crossing Vice Chairman Jack Scanlon was named chief executive of Asia Global Crossing.

Global Crossing will also control a majority of seats on the board of directors of Asia Global Crossing.

The plans also call for an expanded undersea and land fibre optic network through Thailand, and south to Indonesia.