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                                                                    Exhibit 99.2

                              [On GTS Letterhead]



FOR IMMEDIATE RELEASE

            GTS ELABORATES ON TERMS OF FLAG ATLANTIC-1 JOINT VENTURE

MCLEAN, Va., January 13, 1999 - Global TeleSystems Group, Inc. (GTS) (Nasdaq
and Easdaq: GTSG) today provided additional details regarding the terms of its
participation with FLAG Telecom (FLAG) in the FLAG Atlantic-1 joint venture
(JV) announced earlier today.

The FLAG Atlantic-1 project is a 50:50 JV formed by a subsidiary of GTS's
Carrier Services business unit and FLAG to build and operate the world's first
transoceanic dual cable system designed to carry voice, high-speed data and
video traffic at speeds of up to 1.28 terabits/s.  The system, when completed,
will offer a direct link between New York City, London and Paris.  The project
is subject to financing, the execution of related agreements, and other
conditions.

Construction of the initial FLAG Atlantic-1 system, providing service at 160
Gbps, will cost approximately US$1 billion.  Financing of this initial capacity
will be provided by a combination of equity contributions by GTS and FLAG,
project cash flow, and bank debt that is non-recourse to the parent companies.
System capacity will be upgradable in increments of 160 Gbps, which are
expected to be financed using the proceeds of future capacity sales.

GTS has an initial financial commitment to provide a limited amount of start-up
capital to the JV.  Once project financing is completed and other conditions
are met, GTS's financial commitments to the JV for the initial 160 Gbps system
will include approximately US$370 million, which is expected to be incurred
primarily between 1999 and 2001.  These commitments by GTS include equity
contributions to the JV, advance capacity purchases, and construction costs for
GTS's share of the terrestrial portions of the system, expected to be incurred
primarily in 2000.  GTS expects to manage construction of the terrestrial
portions of the system.

In addition to its 50 percent interest in the JV, GTS will own, through its new
GTS Transatlantic Services subsidiary: (i) an allocation of a portion of the
capacity on the FLAG Atlantic-1 transoceanic system and (ii) fiber optic cable
on the portions of the system connecting London, Paris, and the European
landing points.  GTS's Hermes Europe Railtel (HER) subsidiary is expected to
purchase capacity from GTS Transatlantic Services in order to enhance the low
cost structure underlying HER's carrier services and Internet backbone
businesses.  HER expects to carry European backhaul traffic to and from FLAG
Atlantic-1 and offer connectivity with cities on FLAG's other networks under
preferred carrier arrangements.  HER plans to have points of presence in at
least 50 cities by year-end 2000.  However, HER has no ownership interest in or
financial obligations to FLAG Atlantic-1.





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GTS Elaborates on FLAG Atlantic-1 Joint Venture
Page 2


Global TeleSystems Group is a leading independent owner and operator of
telecommunications companies throughout Europe.  GTS has five primary lines of
business: GTS Carrier Services, which provides cross-border transport in Europe
to other telecommunications companies; GTS Access Services, which provides
facilities-based access services to businesses throughout Europe; GTS Business
Services - Western Europe, which offers voice, data, Internet and other
telecommunications services to businesses; GTS Business Services - Commonwealth
of Independent States (CIS), where GTS is a leading alternative provider of
high quality telecommunications services in Moscow, Kiev, St Petersburg and
other cities in Russia and the CIS; and GTS Mobile Services - CIS, which
operates cellular businesses in Russia and Ukraine.

Headquartered in the metropolitan Washington, D.C. area, GTS's affiliates have
offices in London, Brussels, Moscow, Budapest, Kiev, Prague and Paris.

For further information, contact:

Robert Capozzi
GTS
T (U.S.): +1-703-918-4548
T (Europe): +44-171-497-3001
F: +1-703-918-0371
P: +1-800-331-4741
www.gtsgroup.net

THIS PRESS RELEASE INCLUDES FORWARD-LOOKING STATEMENTS THAT INVOLVE RISK AND
UNCERTAINTY.  ALTHOUGH THE COMPANIES BELIEVE THEIR EXPECTATIONS REFLECTED IN
SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON REASONABLE ASSUMPTIONS, NO
ASSURANCE CAN BE GIVEN THAT SUCH PROJECTIONS WILL BE FULFILLED.  ANY SUCH
FORWARD-LOOKING STATEMENT MUST BE CONSIDERED ALONG WITH KNOWLEDGE THAT ACTUAL
EVENTS OR RESULTS MAY VARY MATERIALLY FROM SUCH PREDICTIONS DUE TO, AMONG OTHER
THINGS, POLITICAL, ECONOMIC OR LEGAL CHANGES IN THE MARKETS IN WHICH GTS DOES
BUSINESS, COMPETITIVE DEVELOPMENTS, TECHNOLOGICAL DEVELOPMENTS AND RISKS
INHERENT IN THE COMPANY'S BUSINESS PLAN.  READERS ARE REFERRED TO THE DOCUMENTS
FILED BY GTS WITH THE SEC, SPECIFICALLY THE MOST RECENT REPORTS FILED UNDER THE
SECURITIES AND EXCHANGE ACT OF 1934, WHICH IDENTIFY IMPORTANT RISK FACTORS.