Business News – France Marches into U.S with Global One-Intermedia Deal

Posted: 08/2000

France Marches
into U.S with Global One-Intermedia Deal
By Ken Branson

Global One (www.globalone.net) has chosen Intermedia Communications Inc.
(www.intermedia.com) to be its local legs in the United States. The two companies have signed a three-year agreement, under which they will collaborate to provide enterprise data and IP network services to U.S. customers.

In a joint statement, the companies say that Intermedia Inc. will provide Global One with broadband data and high-speed Internet network services for origination and termination in the United States. Global One will connect its international ATM and frame relay network to Intermedia’s U.S. network and will offer its international products directly to
U.S. customers.

Global One, owned entirely by France Telecom (www.francetelecom.fr) since January, thus marks its emergence from under the shadow of its former American parent, Sprint Corp.
(www.sprint.com). Global One was originally a three-way joint venture among Sprint, France Telecom and Deutsche Telekom
AG (www.dtag.de).

GlobalOne already has announced plans to roll services out in several American cities: Chicago, Detroit, Houston, Los Angeles, Miami, New York, Philadelphia, San
Jose,Calif., Seattle and Washington.

The deal also represents a gambit into the North American market by France Telecom. Analysts long have believed that a company with more than merely local reach in North America could serve as a beachhead for a foreign carrier trying to establish itself in the United States and Canada. Intermedia owns Digex Inc.
(www.digex.com), a high-end web hosting and Internet backbone carrier.

Global One already touts itself on its website as a “well-kept secret” in
the United States. The company offers IP and enterprise network solutions, in addition to the usual international
calling solutions.