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Thomas K. Thomas

$25-m project will have cable extending from Lanka to Maldives

New Delhi , Sept. 3

Reliance Communications-owned FLAG Telecom is in talks with Lanka Bell, one of Sri Lanka's privately held wireless telecom operators to lay an under-sea cable linking India and Sri Lanka.

The $25-million project will also have a cable extending from Sri Lanka to the Maldives. This will be the second under-sea cable project between the two countries. Bharat Sanchar Nigam Ltd has entered into an agreement with the Sri Lanka Telecom, the state-owned telecom company, for laying an under-sea cable.

Currently, Sri Lanka Telecom routes its international traffic through its under-sea cable link with SEA-ME-WEA (South East Asia, Middle East and Western Europe) consortium.

The other private owned company Dialog Telekom routes its international traffic through its parent company Telekom Malaysia's network. The link with FLAG will enable Lanka Bell to foray into international telephony.

FLAG owns extensive optical fibre network connecting four continents and key markets in Asia, Europe, West Asia and the US.

Reliance had acquired FLAG in 2004, which along with some major acquisitions by VSNL, has catapulted India's position in the international bandwidth market.

Last year FLAG and China Telecommunications Corporation signed an agreement to provide direct telecommunication service, including a global hubbing service, to subscribers in the two countries.

Before this, there was no direct connectivity and calls between the two countries were being routed via the US or Europe. FLAG has a customer base of 180 operators including some large international carriers.

Reliance is all set to launch its new cable system FALCON this week, which will connect India to West Asia.

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

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