PARIS, Nov. 1 -- Alcatel and 360networks will team up to extend 360networks' global optical network. Combining their respective experience in the development and implementation of optical networking technologies, Alcatel and 360networks will join forces to speed up the development of 360networks' seamless, cost-efficient, optical network infrastructure.
The non-exclusive alliance calls for Alcatel to purchase up to $1 billion of 360networks' convertible preferred stock while 360networks will build 360pacific, a transpacific submarine cable with Alcatel as the supplier. 360networks will also build an additional transatlantic submarine cable to connect with 360atlantic and Alcatel will bet the supplier. In addition, 360networks will give Alcatel a supply contract for at least $100 million to provide optical networking equipment for terrestrial networks. A joint technical advisory group will be formed to support further collaboration between Alcatel and 360networks.
We are delighted to have entered into an alliance with 360networks, a leading global telecom provider, said Serge Tchuruk, chairman and CEO of Alcatel. The partnership will enable Alcatel to have a better understanding of market trends as we develop new products and solutions, increase our business as global network architects, and elevate our position in the telecommunications value chain. This is an incredible opportunity for 360networks, said Greg Maffei, president and CEO of 360networks. We are partnering with one of the world's leading telecommunications equipment suppliers. We will leverage our relationship with Alcatel to deploy the most advanced technology, getting the benefits of vertical integration with more flexibility and lower costs. With 360pacific, we will complete our footprint and have an unparalleled global network.