The Hindu : Business : VSNL to invest $600 m in submarine cables

Online edition of India's National Newspaper
Friday, Aug 25, 2006

Business

Business

VSNL to invest $600 m in submarine cables

Staff Correspondent

Funding through strategic partnership and internal accruals

MUMBAI: VSNL has announced its intention to build two new submarine cable systems, one between India and Europe and the other intra-Asia in partnership with leading carriers in the respective regions. The overall cost of these two cable systems is expected to be in the region of $600 million. The investment will be funded through the resale of bandwidth and through strategic partnership as well as internal accruals.

These multi-terabit capacity systems, incorporating state-of-the-art technologies, will interconnect with VSNL's existing global network that has over 20 terabits of capacity.

The India-Europe cable would provide connectivity to the Gulf region and the African continent and supplement VSNL's existing bandwidth capacity in several consortium cables in the region. The intra-Asia cable between Singapore, Hong Kong and Japan will enhance the link between VSNL's Tata Indicom Cable (Chennai-Singapore) and TGN Pacific (Japan-USA). N. Srinath, Executive Director, VSNL, said, "The new cables will enhance VSNL's global network in two of the fastest growing regions in the world.'' The company on Thursday also announced a significant reduction in the prices for its international bandwidth products — International Private Leased Circuits and Internet Leased Lines (ILL). It has reduced the IPLC prices in India by up to 25 per cent effective September 1 and has also announced a reduction of its ILL tariffs by up to 40 per cent. These products are offered in India using VSNL's global network.

Printer friendly page
Send this article to Friends by E-Mail

Business