Singapore, 08 May 2002 -- Asia Global Crossing and StarHub announced today that StarHub Crossing will become a wholly owned subsidiary of Asia Global Crossing. Both companies have agreed to modify the partnership to better reflect the needs of each business in relation to their respective capacity needs. Asia Global Crossing and StarHub expect to continue their mutually beneficial alliance on a preferred provider basis.
Under the terms of the agreement, Asia Global Crossing will continue to utilize the StarHub terrestrial network for its Singapore backhaul. Similarly, StarHub will continue to access the Asia Global Crossing network for its international capacity needs. However, the new arrangement is a purely commercial agreement between both parties, which renders the requirement for a separate vehicle unnecessary.
"As part of our ongoing restructuring effort, Asia Global Crossing is actively capitalizing on opportunities to save cash while ensuring that our business needs are met. We are pleased that this amended agreement will allow us to improve our economics and maintain our strong alliance with StarHub, and at the same time ensure that our customers, as part of our unparalleled pan-Asian network, will continue to enjoy the most extensive connectivity within Singapore," said Mark Simpson, Senior Vice President of Customer Service and MIS at Asia Global Crossing.
"The change in StarHub’s partnership with Asia Global Crossing reflects a structural modification only. The new arrangement is a better way to accomplish the original objectives of the joint venture, and still meet the needs of both companies. We are going about the same activities, albeit in a different form. StarHub is consistently dedicated to ensuring that our customers enjoy high quality and competitively priced end-to-end service," said Mike Reynolds, Senior Vice-President of Business Markets at StarHub.
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