EoW January 2014

News Corporate

Russian telecommunications company MegaFon has launched a terrestrial fibre optic cable route connecting Europe and Asia. Built in partnership with Kazakhtelecom and Interoute, the Diverse Route for European and Asian Markets (DREAM) extends 8,700km from Frankfurt to Kazakhstan’s border with China. It passes along a route, partly selected for low seismic activity, through Austria, Russia, Slovakia and Ukraine. “International telecom operators will be able to utilise the safest and most optimal route to organise the transfer of data for their clients, as well as increase the reliability of their networks,” said MegaFon CEO Ivan Tavrin, in a statement. “Every year the volume of traffic sent from Europe to Asia, along with the demand for the capacity of communication channels, is steadily growing. Therefore, we view this project as both significant and promising for MegaFon’s business.” Russian link to Europe and Asia At launch, DREAM is offering access to 10Gbps dense wavelength division multiplexing channels. The entire cable system has a potential maximum capacity of 8Tbps. “Terrestrial routes like DREAM are the ideal solution for the development of high speed circuits between these two parts of the world,” said Renzo Ravaglia, executive vice president of Interoute’s service provider business.

Nexans jobs cut Nexans has revealed plans to cut 468 jobs and transfer a further 462 positions to cope with weaker European demand and overcapacity. Following a 2.9 per cent fall in sales over the first nine months of 2013, the company has also cut its full-year EBITDA and operating margin goals. “In Europe, a lack of growth, overcapacity and fierce competition mean the group needs to consider measures to address the situation,” Nexans said in a statement. The restructuring, which also entails the creation of 39 new positions, will primarily concern France, Germany, Switzerland, Italy and Belgium. Chief financial officer Nicolas Badre announced that in France, where Nexans employs around 3,300 people, 206 jobs will be cut and 87 positions transferred. Nexans employs 25,000 people worldwide, including 14,700 in Europe.

“The new path, from our point of view, will be an alternative solution to existing transcontinental systems and will meet high demand on the market.”

Nexans – France Website : www.nexans.com

MegaFon – Russia Website : www.megafon.ru

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January 2014