International telecommunications supplier 360 Networks has completed the installation and lighting of an 11,700 kilometre undersea cable linking Ireland with the US, Canada and Britain.

It is the second transatlantic cable to link the US and Ireland, following Global Crossing's entry to the market last year, and will further reduce the cost of international connectivity.

According to IDA Ireland, the cost of global connectivity has fallen by a 10th, while total transatlantic capacity has risen by as much as 15 times.

This has driven the cost of connectivity between New York and Dublin down to the same level charged for connectivity between Cork and Dublin, according to telecoms sources.

Currently, 360 Networks is testing the cable and will begin offering capacity on its network within a matter of weeks, according to Mr John Clancy, sales and marketing manager at 360 Networks.

The firm announced this week it sold capacity worth $475 million (€527 million) to major carriers and network service providers for services on its global and US network in the first quarter of 2001.

The firm's dark fibre network has a capacity of 1.92 terrabits per second.

Initially, 360 Networks will offer dark fibre capacity to carriers and smaller, 155 megabit per second, portions of what is called managed wavelength capacity to multinational customers.

Following upgrades to its networks, 360 Networks will offer Internet protocol services to customers from next year.

However, the construction of a second transatlantic cable planned by 360 Networks and Alcatel - which would have doubled transatlantic capacity and put further pressure on connectivity prices - is under review.

The two firms were expected to make a final decision by the end of February. But this has been delayed due to a downturn in the telecoms market and a growing belief that fibre is becoming commoditised.

Mr Clancy said the suggestion that connectivity was commoditised was untrue. Some routes were still not well served and prices had stabilised in these areas, he said.

In addition to its $770 million investment in its transatlantic cable, 360 Networks will open an Internet data centre in Clonshaugh, Dublin, before the end of the second quarter.

The Canadian firm will target a range of customers including carriers, multinationals, hosting firms, Internet service providers and application service providers, according to Mr Clancy.