Wave Issue 9035 4/05/99 Article 10-03

***Construction of 40 Gbps Undersea Cable to Cuba
(March 15)

Quest Net announced that it has filed with the Federal
Communication Commission for the authority to begin the
construction of a 40 Gbps undersea fiber optic cable with
capacity of over 530,000 simultaneous connections.

The system consists of approximately 180 km of undersea cable and
two landing points. “Projecto Unidad,” as it is known, will open
broadband applications with security for educational, scientific
and commercial users and greatly enhance the availability and use
by the Cuban residents.

In addition, the Internet will be more readily available to
residential users facilitating communication between the average
citizen and the world with a primary link with the United States.
With the change in the political atmosphere and the emergence of
a more open relationship between Cuba and major world powers, the
demand for bandwidth and voice capacity is expected to grow
sharply as the Cuban economy continues to develop and diversify.

It is estimated that the overall cost of the project will be
approximately $13,000,000,00 and will be completed within a year
from the date of the approval by the proper governmental
agencies, of which no assurance can be given. Currently fiber
optic connectivity does not exist between Cuba and the outside
world. AT&T has one copper cable that was installed in the late
40’s, and has been in use since the United States and Cuba opened
a direct phone link in 1993.

The “Projecto Unidad” system is being designed primarily for data
and will only carry Internet and data traffic. Quest Net Corp.
therefore will not be involved in settlement of telephone
tariffs, which is a point of contention between the USA and CUBA.
After preliminary contact with OFAC (Office of Foreign Asset
Control), FCC (Federal Communications Commission), and the State
and Commerce Departments, the management of the Company is
confident that there is no violation of the Cuban Democratic Act
in its proposal as Internet traffic is already widely available
between the United States and Cuba. The company will not begin
construction until such time as permission has been secured and
the proper licenses have been obtained from both governments.

SETWAVE Communications, a New Jersey based firm that specializes
in management and design of Fiber Optics undersea cables has been
awarded the management contract for the construction and
installation of the cable.

The Company is presently negotiating with Tyco Submarine Systems
to build and install the cable. No agreement has been entered to
date. TSS is the largest supplier of submarine cable systems in
the world, having installed more than 155,000 miles of undersea
cable.

www.ipquest.com