Anil Ambani-led RCom to lay $600-mn undersea cable to carry data across Europe and Asia

Mumbai: Embattled Reliance Communications is laying a 68,000-km undersea cable to carry data across Europe and Asia, to be built at a cost of $600 million.

The system, which will connect its base in India with Italy to the West and Hong Kong on the East, is expected to treble revenues in five years for its wholly-owned subsidiary Global Cloud Exchange, which is laying the cable, the company said here on Tuesday.

It is expected to be operational by the third quarter of 2020 and will have a revenue potential of $1 billion per year, RCom's chief executive Bill Barney told reporters.

Reliance Communications. Reuters.

Reliance Communications. Reuters image.

The new cable will increase its total capacity by ten times as against the current capacity, he added.

Saddled with a debt of Rs 45,000 crore, the Anil Ambani-led company exited the consumer-facing wireless business late last year, to focus on the enterprise segment.

The size of what is being billed as the "new RCom" is much smaller but it is expected to be much leaner. Late last month the company sold its spectrum to elder brother-run Reliance Jio for an estimated Rs 23,000 crore which helped it skirt a slew of insolvency petitions and eventual liquidation.

The cable will be financed by partners, whose numbers can go up till 30, he said, adding the company expects to get over $700 million through such pre-sales as against the cost of $600 million.

It has already tied up with six partners, including Alibaba, for the cable and raised $300 million in commitments, he said.

Barney said the company expects a spurt in IT and telecom activity in the country over the next five to ten years, due to which it is betting on the cable business.

The cable potentially reaches over 75 percent of the youth in the globe, which is also very educated, he said.


Updated Date: Jan 16, 2018 15:17 PM

Also Watch

It's A Wrap: Omerta star Rajkummar Rao in conversation with Parul Sharma
  • Thursday, April 26, 2018 In the Kanjarbhat community, a campaign against 'virginity tests' is slowly gaining ground
  • Thursday, April 19, 2018 Watch: National-level skater and coach Dhwanit Rele trains and nurtures budding athletes
  • Monday, May 14, 2018 FOMO Episode 1: Google Assistant, This is America, Sonam's wedding & Global Warming
  • Saturday, May 19, 2018 Social Media Star: Rajkummar Rao and Bhuvan Bam open up about selfie culture, online trolls

Also See