GlobeNet Communications, the holding company for TeleBermuda International, has announced it will be working with a European telecommunications group in its $1 billion trans-Atlantic cable system.

The company said yesterday that together both firms were to market a seamless undersea fibre optic cable between Europe and Latin America.

GlobeNet has struck the deal through its wholly owned Bermuda subsidiary Atlantica Network Ltd with Global TeleSystems Group Inc. to provide a high quality, seamless city-to-city underwater connection across the Atlantic.

Under the agreement GlobeNet will sell managed broadband services from a number of South American cities to Europe and GTS will sell similar services from Europe to South America.

The services will be provided jointly on GlobeNet's Atlantica-1 Network and GTS's FLAG Alantic-1 undersea network.

GlobeNet will provide the link between New York through Bermuda to Brazil.

This service is scheduled to be in service by September, 2000.

GTS will connect its trans-European networks and New York.

"Having successfully completed our financing for the Atlantica-1 network, GlobeNet is immediately moving to deliver maximum value and coverage for our carrier customers,'' said Jerry DeMartino, GlobeNet's chief executive officer.

Brian Thompson, GTS's chairman and chief executive officer, said: "This agreement will serve to make our bandwidth offering all the more attractive.

Not only will we be able to offer telecommunications and Internet companies broadband connectivity between North America and major cities in Europe, but with this agreement, South America as well.''