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Reliance's FLAG Telecom bags China Netcom deal

Our Bureau

New Delhi , July 10

China Netcom, a fixed line telephone operator in Northern China, has selected FLAG Telecom, a subsidiary of Reliance Communications, as the preferred international carrier to provide trans-pacific bandwidth for its fast-growing broadband operations.

Under the agreement, FLAG Telecom would provide 40 GB of international bandwidth to China Netcom.

The increased capacity would also be deployed by China Netcom to broaden its service bouquet by providing solutions such as virtual private network services, Internet media and TV applications in the Chinese market.

FLAG has also been chosen by Bahrain's telecom operator Batelco, which is in the process of moving all its international circuits for voice telephony to the Reliance Communication's global telecom arm. Batelco has been a customer of FLAG Telecom since 1997. Reliance has 60-65 per cent market share of the voice calls from Bahrain to India. The Reliance Communications Chairman, Mr Anil Ambani, had recently visited Bahrain where he met the Deputy Prime Minister, Sheikh Ali Bin Khalifa Al Khalifa, and signed a mega deal on the soon-to-be-launched FALCON cable system.

The deal is estimated to be close to $40 million and the revenues would be booked over the duration of the contract.

Related Stories:
Flag, Omantel sign pact
Reliance Info, China Telecom tie up for direct service

More Stories on : Broadband | Alliances & Joint Ventures | Telecommunications

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PNB Philip Kotler

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