million of capacity on its South American network, which includes a cable currently being laid between Bermuda and Fortaleza, Brazil.

The capacity has been purchased by France Telecom and Brazilian Intelig Telecommunications Ltd. to provide connectivity from Bermuda, North America, Argentina and Venezuela to customers in Brazil.

360networks began laying the 5,300-kilometre cable from Bermuda to Brazil last month.

The company said in a statement on Wednesday it will provide the two companies with 10-gigabit per second wavelength capacity on its planned 28,0000 kilometre network, 360americas, which is due to be completed in the first quarter of 2001.

"As a result of this agreement with 360networks, we can now expand to offer international Internet Protocol-based broadband services to our customers in Brazil,'' said Intelig's chief information officer Ferndo Terni.

"The purchase of this capacity also enables us to become a major provider of high-speed Internet services throughout the country.''