VSNL buys Tyco submarine cable network for $130m

Tue Nov 2 01:38:51 UTC 2004

Rather obvious sequence of events ...

* VSNL as India's former government owned monopoly telco, got exclusive 
rights on the FLAG cable landing in India, and kept a tight hold on it, 
only agreeing to sell at the most 10% of available capacity, at rather 
rates (add to it refusing to let its downstreams - most ISPs in India, 
back then, peer locally at vsnl, and so forcing all local traffic 
through expensive international links).

* VSNL was privatized, taken over by the Tata Group .. still kept their 
hold on FLAG's cable landing in India.

* VSNL's arch rival Reliance went one up on them and bought FLAG telecom

* So, now VSNL goes and buys Tyco - another large submarine cable provider

	srs

http://www.hinduonnet.com/thehindu/holnus/001200411020354.htm

VSNL acquires Tyco for $130 mn

New Delhi, Nov. 2. (PTI): Tatas-owned Videsh Sanchar Nigam Ltd on Monday 
decided to acquire Tyco Global Network, submarine cable system, for 130 
million dollars.

The acquisition, which is subject to government approval in the United 
States, India and other countries, would give VSNL control over a 
network spanning 60,000 km and three continents.

"The agreement is a major step forward in our ongoing drive to offer our 
enterprise and carrier customers seamless, end-to-end telecommunications 
solutions that circle the globe," N Srinath, Director (Operations) of 
VSNL, said.

"This coupled with the submarine cable we plan to launch shortly 
connecting India with Singapore," he said, adding that this will give 
customers a new choice in global data services.

"Furthermore, the timing of this transaction is well suited to our 
international expansion plans," Srinath said.