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

RCom has already tied up with six partners, including Alibaba, for the undersea cable and raised $300 million in commitments

PTI January 16, 2018 15:14:58 IST
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.

Anil Ambaniled RCom to lay 600mn undersea cable to carry data across Europe and Asia

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:

also read

Europe battles COVID-19 case surge as WHO warns of 700,000 more deaths by 1 March
World

Europe battles COVID-19 case surge as WHO warns of 700,000 more deaths by 1 March

Chancellor Angela Merkel has warned that Germany is not doing enough to curb its 'highly dramatic' fourth wave of the pandemic

Europe COVID-19 surge: Austrian lockdown to contain virus dampens holiday mood
World

Europe COVID-19 surge: Austrian lockdown to contain virus dampens holiday mood

From midnight, today, Austrians have been asked to work from home and non-essential shops have been shut again.

China does not seek dominance, will not bully smaller neighbours,  Xi Jinping tells Southeast Asia leaders
World

China does not seek dominance, will not bully smaller neighbours, Xi Jinping tells Southeast Asia leaders

Xi made the remarks during a virtual conference with the members of ASEAN, held to mark the 30th anniversary of relations between China and the grouping