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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
January 13, 1999
Date of Report (Date of earliest event reported)
Global TeleSystems Group, Inc.
(Exact name of registrant as specified in its charter)
Delaware 0-23717 94-3068423
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
1751 Pinnacle Drive
North Tower, 12th Floor
McLean, VA 22102 22102
(Address of principal executive offices) (Zip Code)
(703) 918-4500
(Registrant's telephone number, including area code)
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Item 5. Other Events
On January 13, 1999, Global TeleSystems Group, Inc., through its
subsidiary GTS Translantic Holdings Ltd., entered into an agreement with FLAG
Telecom to form a 50/50 joint venture that will build and operate a
transoceanic fiber optic link between Europe and the United States to be known
as FLAG Atlantic-1. FLAG Atlantic-1's link is designed to carry voice,
high-speed data and video traffic at speeds of 1.28 terabits per second, a
25-fold increase over current transatlantic cable systems. The joint venture
will also provide backhaul links from the European landing points of the
transoceanic link to Paris and London. By interconnecting to FLAG Atlantic-1,
GTS Carrier Services and its subsidiary HER will be able to provide their
carrier and Internet service provider customers with high-capacity cable access
from major European cities to New York City. GTS's investment in FLAG
Atlantic-1 is designed to enable it to participate in the growth opportunity
represented by the rapid increase in demand by business customers for Internet
Protocol-based telecommunications services. The high-capacity fiber optic link
will be based on synchronous digital hierarchy and use dense wave division
multiplexing technology. FLAG Atlantic-1 is expected to being offering service
by the end of the year 2000. The project is subject to financing, the
execution of related agreements and other conditions. Additional information
regarding GTS's financial and other participation in the joint venture is set
forth in the two press releases which are included as exhibits to this Report.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c.) Exhibits
Designation Description of Exhibit
----------- ----------------------
99.1 Press release dated January 13, 1999
announcing joint venture agreement
99.2 Press release dated January 13, 1999
discussing GTS's participation in the
joint venture.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Global TeleSystems Group, Inc.
(Registrant)
Date: January 13, 1999 /s/ Alan Krenek
Vice President -
Corporate Accounting
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EXHIBIT INDEX
Designation Description of Exhibit
- ----------- ----------------------
99.1 Press release dated January 13, 1999
announcing joint venture agreement
99.2 Press release dated January 13, 1999
discussing GTS's participation in the
joint venture.