Reliance Globalcom selects Ciena for fibre-optic upgrade
Reliance Globalcom has selected Ciena Corporation to deploy its 40G optical networking solution on a submarine cable linking the United Kingdom, Spain, Italy and Egypt.
The upgraded cable, which spans more than 6,400km, will add 2.4Tbps of capacity on the route, with Ciena’s ActivFlex 6500 Packet-Optical Platform with 40G ultra long haul interfaces deployed with a view to significantly increasing the submarine network capacity without disrupting existing customer traffic or adding cost and complexity to the network.
According to Rory Cole, President and COO of Reliance Globalcom’s Carrier and ISP division, by adding Ciena’s 40G technology at their terminal stations, they increase their capacity by a factor of four with a clear, in-service path to 100G without disrupting existing customers, re-engineering our network or sending ships out to lay more fibre. With this one simple step, they bolster the value and extend the lifespan of their submarine network.
Reliance Communications plans to raise $500 million abroad
Reliance Communications has revealed that it will continue to evaluate proposals for a stake sale in its tower business, but will be generating sufficient funds to take care of its operational capital expenditure.
As per the sources, Flag Telecom, a part of its international network arm Reliance Globalcom, could raise at least $500 million by selling bonds to European investors.
RCOM has appointed Deutsche Bank’s investment banking arm to spearhead the latest fund-raising effort. If successful, the funds will be used to meet debt obligations, including $200 million worth of convertible bonds held by overseas investors due May 2011.
Reliance Communications acquired Flag Telecom, the undersea cable business, in 2003 for about $207 million. After a recent restructuring, the company’s Indian enterprise business has been added to Reliance Globalcom. Speculation is rife that the restructuring was done largely to make the unit attractive to potential suitors.
RCOM to merge enterprise business operations (India)
If sources are to be believed, Reliance Communications’ (RCOM) corporate customer business is undergoing a major restructuring, with its domestic enterprise business being merged with its global operations. The move could be a first step towards an asset sale deal.
According to sources, the recently formed division will include the company’s overseas cable network assets presently under Reliance Globalcom, which accounts for all international business — and domestic corporate customers. The division will also include data centres. Later, the division may be converted into a subsidiary and sold to strategic or financial investors.
According to one of the sources, RCOM is merging the two business segments to best use the synergies between them. The new combined enterprise business unit will account for approximately 35% of RCOM’s revenue. A formal announcement is expected soon.
The Anil Ambani Group Company, India’s second largest telecom operator is seeking to raise funds either via a minority stake sale in the company or by selling some of the assets. It was recently in talks to sell its telecom towers to GTL Infrastructure, but these talks did not conclude in a deal. RCOM requires funds to withdraw a part of its US677.81 million debt. In the past, it has attempted to publicly list or sell its global business and list its infrastructure arm, but is yet to complete any of these transactions. According to officials, at this stage the restructuring is purely operational to remove redundancy in services offered to domestic and international clients.
The source further claimed that this restructuring will result in a single team handling all the services, in India and abroad, for each client.
The enterprise business is measured high margin as companies give higher amounts for managed services compared with retail customers. It is an important source of revenue for telecom players like Reliance Communications that have been battling the effect of crashing call rates since late 2008.
Reel catch: PrimeTel hooks Reliance to land undersea whopper
Reliance Globalcom, part of India’s Reliance Communications, has agreed to connect its multi-terabit next-generation DWDM undersea cable system at a landing station in Cyprus operated by alternative telco PrimeTel. Triple-play broadband provider PrimeTel is constructing a submarine landing station in Yeroskipos and has secured 5Gbps of global capacity with an option for future upgrades. PrimeTel hopes that the project, scheduled to be completed by the end of this year, will attract corporate business to Cyprus by increasing international broadband capacity, providing alternative routing and lowering prices.
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