Indosat buys Global stake<\/p>\n
CHICAGO (Reuter): Privately-owned discount telecommunications
\nfirm, USA Global Link Inc, said Monday that PT Sisindosat, a
\nsubsidiary of PT Indosat of Indonesia, had taken a 20 percent
\nequity stake in USA Global for US$20 million.<\/p>\n
USA Global said it will use the proceeds to buy switches to
\nbe installed in Japan, Europe and Asia in order to build a global
\nnetwork.<\/p>\n
USA Global -- which provides callback services, virtual
\nprivate networks and calling cards -- is a reseller of network
\ncapacity on other carriers' networks. The company said it
\nenvisages a initial public offering in late 1996.<\/p>\n
PT Sisindosat will appoint one member to USA Global's nine-
\nmember board of directors.<\/p>\n
USA Global had 1995 revenues of $176 million.<\/p>\n
Holland Taylor, president and co-founder of USA Global, told
\nReuters the alliance offered the Indonesian partner an
\nopportunity to participate in the markets of other countries even
\nwhere facilities were monopoly-owned.<\/p>\n
He said a similar deal might be tied up as a result of talks
\nwith a national carrier in western European.<\/p>\n
\"We are in talks,\" he said.<\/p>\n
Taylor said USA Global was moving toward owning more of its
\nown facilities, rather than purely acting as a reseller of the
\nfacilities of others.<\/p>\n
As an example of the advantages, he said it had bought an
\nindefeasible right of use to a North Atlantic cable -- a
\npermanent lease -- which costs only slightly more than a one-year
\nlease.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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