Telegroup Acquires Transpacific Cable Between Japan and United States
FAIRFIELD, Iowa--(BUSINESS WIRE)--May 27, 1998--Telegroup(R), Inc. (Nasdaq: TGRP - news), a leading emerging global telecommunications provider, announced today that it has just acquired four E1's between Japan and the United States. The Company can now run minutes over its own transpacific circuits linking the two countries. Using muxing equipment to compress the signal, Telegroup is quadrupling the capacity of the E1's, to yield a total capacity of four to five million minutes per month.
Commenting on the benefit to the consumer, Eric E. Stakland, Telegroup's Senior Vice President for International Marketing and Operations, noted: ``Acquisition of the Japan-to-U.S. circuits allows us to provide our retail customers with better quality service at a better price. Better quality because we can exercise quality assurance control when the signal is carried on our own lines. Better price because we're using our own network.''
Telegroup Japan, which has had switching facilities in Tokyo since mid-1997, was awarded a Special Type II Carrier License by the Japanese Ministry of Post and Telecommunication earlier this year. The point of presence (POP) which the Company recently activated in Osaka has allowed Telegroup Japan to enlarge its customer base and to offer Telegroup Global Access(R) Direct (GAD) dialing in Osaka and Tokyo. The recent availability of CLI (Calling Line Identifier) in Osaka--slated for availability in Tokyo in May--has made GAD even easier to use, as it precludes the need for the customer to enter a personal authorization code.
``We're continually expanding our facilities to better serve this very important market,'' added Stakland, ``and we have further service upgrades planned throughout 1998.''
Telegroup is a leading emerging multinational carrier of long distance telecommunications services to over 200 countries. Telegroup offers services to small- and medium-sized businesses and residential customers. The company also provides value-added wholesale services to over 40 domestic and international telecommunications carriers. Telegroup is recognized as having one of the most comprehensive global sales, marketing, and customer service organizations of the emerging multinational carriers. The company operates a digital, facilities-based network, the Telegroup Intelligent Global Network(R), which consists of a central operating center, twenty-one switches, five enhanced service platforms, owned or leased capacity on ten digital fiber-optic cable links, and leased parallel data transmission capacity. Telegroup had revenues of $337 million in 1997.
Application of the Safe Harbor of the Private Securities Litigation Reform Act of 1995: This news release contains statements which are not historical facts and may be considered forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including the expansion and quality of Telegroup's network, improvement of Telegroup's competitive position, and achievement of Telegroup's business plan. Telegroup's actual results might differ materially due to numerous factors including, without limitation, the Company's success in developing its business plan, and acquiring additional financing needed to meet this plan, foreign currency fluctuations, termination of certain operating agreements, and changes in tax law. Those and other risks are described in the Company's filings with the Securities and Exchange Commission.
###
