Reliance Comm to invest $1.5 bn for its new venture

Mumbai, Dec 28 (UNI) Reliance Anil Dhirubhai Ambani Group (RDAG) today announced that it plans to expand Flag Telecom's global optic fibre network, to be known as 'Flag NGN' (next generation network) on the occasion of 74th birth anniversary of the founder of the Group, Dhirubhai Ambani.

Addressing the media here, RDAG chairman Anil Ambani said ''RDAG would invest a sum of US 1.5 billion dollars (nearly Rs 7,000 crore) in the new venture over a period of three years to build the world's largest internet protocol (IP) network over submarine cable systems.'' The project will cater to the fast growing telecom needs of over five billion customers across the globe, he hoped.

As per the project, a total of 50,000 additional km of under sea optic fibre cable would be laid to cover 60 countries in the four continents of the world. On completion, Flag global network would span over 1,15,000 km by December, 2009, thus taking total optic fibre assets of the Group's to over 2,30,000 km. The cable will be laid some 35,000 feet under the sea, he said.

The project will allow five crore people all across the world to chat at a time and watch 2,50,000 motion pictures of their choice, he added.

The Flag NGN would comprise four systems covering the regions like Asia, Africa, Mediterrenian and Trans-Pacific, he said.

To a query, Mr Ambani said ''From being carriers' carrier, Flag NGN will facilitate infinity a finite which, in simple terms, means making infinite possible.

He added that his company would take debt-equity to the required level.

Also, FALCON, which is a new fibre-optic submarine cable system providing high-speed connectivity between Middle East and India, will interconnect with FLAG's existing global network, he informed.

On his Group's efforts to take over Hutch-Essar, he said ''I think that the potential combination of the project would create a great value to my company, which was expanding both vertically and horizontally.'' On the financial support aspect of the ongoing deal, Mr Ambani said ''We have a committed financial support for pursuing global growth.'' To another query, he said ''The customers for our new project are our own global partners like FALCON System and Orascom.

The spectrum was the key driver for the telecom industry today, he said and rued that most part of it was currently being released for various defence establishments of the country.

UNI KKD SSS SKB2004