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FLAG Telecom forms alliance with global co.
Deal To Give It Access to 6 Continents
FLAG Telecom, the undersea cable arm of Reliance Communications, has entered into an alliance with a global submarine cable operator which will enable it to enhance the reach of network to both South America and Australia. The company, however, refused to divulge the name of the operator, while confirming that the agreement was signed in London last week. The alliance will give Flag Telecom access to over 2,00,000 km of fully IP-enabled optic fibre of multiple undersea cable owners, long distance and access providers across six continents on routes where it does not have a presence.
The company said that the deal will not only give it additional routes to carry traffic for its existing and potential customers, but also increase the utilization of its existing network considerably. The move would enable Flag to cater to 1,250 plus Indian and global enterprise, ISP and Carrier customers for connecting to Australia and the fast developing countries in Latin America, the company added.
At present, the Flag network connects the US, Europe, Middle East, Mediterranean, Indian Sub-continent and Par East. Last year, the company had announced that it would invest Rs 7,000 crore to build four new undersea links — the first connecting India, Malaysia, Singapore, Indonesia, Vietnam, Philippines, Brunei and Hong Kong while the second cable will cover African and Mauritius. The third leg is likely to cover Greece, Cyprus, Turkey, Malta, Libya and Lebanon while the fourth would cover the trans-Pacific route US west coast, Japan, China and Hong Kong. Flag has already short listed four global submarine cable infrastructure majors NEC and Fujitso from Japan, USA’s Tyco Networks and France’s Alcatel to build these cables.
Flag Telecom is also slated to be listed on the London Stock Exchange soon and RCOM hopes to raise over $500 million by diluting up to 24% stake in the company.
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