A Bermuda-based telecommunications company has formed a strategic alliance with Jato Communications Corporation, a high-speed digital subscriber line (DSL) Internet access and applications company.

As part of the six-year arrangement, Global Crossing Limited, which is building and offering services over the world's most advanced global Internet provider-based fibre optic network, will provide Jato with SONET private line, Internet Protocol (IP) transit and Web hosting services.

The alliance was formed by Global Crossing's Carrier Services Division. The company has also made a $5 million equity investment in Jato.

Global Crossing may also expand its DSL service area by reselling Jato's business grade DSL to Global Crossing customers in Tier II and Tier III cities across the US.

Utilising IP Plus services from Global Crossing, Jato can now provide world class Internet services directly to the small to medium-sized business community.

It will continue to market its products on a wholesale basis through its Internet service provider partners.

"The partnership not only gives us bandwidth and data transit, but also access to Global Crossing's best-in-class Web hosting capability -- without requiring the time and capital expense of building it ourselves,'' said Jerry Dinsmore, Jato president and CEO.

"Jato is a next-generation company that shares our belief that the real value of high-speed connectivity is in enabling powerful new business applications,'' said Brian V. Fitzpatrick, president of North American Carrier Operations for Global Crossing.

"We are impressed with Jato's footprint, its business model, and its management team. When combined with our advanced global network capabilities, Jato is poised to take full advantage of the explosive growth in the DSL market.'' Jato has raised more than $74 million in equity from several venture capital firms and strategic partners. In addition, the company is supported by a $50 million agreement with Lucent Technologies, which provides Jato with access and data networking products, as well as installation, monitoring, network maintenance and financing.