RCom to list its subsidiary Flag Telecom

Mumbai, July 17: India's second largest telecom operator, Reliance Communication, will be unlocking the value of its subsidiary Flag Telecom through private placement of equity or international listing of shares before year-end.

While addressing the shareholders at the Annual General Meeting here today, Company chairman Anil Ambani said, ''Flag Telecom has turned around and delivered profits at the net level for the first time since its inception and we will unlock its value by year end by listing or private equity.'' RCom has recently acquired US-based data communication company Yipes under its subsidiary Flag Telecom. The acqusition of Yipes has set the footprint of Flag Telecom in the global data communication market.

Flag Telecom was acquired in 2003 by RCom, whose connectivity has now expanded from 40 to 60 countries across the world.

''Yipes acquisition will transform RCom's position in data communications services business in the US and globally,'' Mr Ambani said.

Yipes has operations in 14 major cities of the US, from New York to Los Angeles from Boston to Houston, from Washington to Seattle. Yipes has nearly 1,000 enterprise customers in the US.

UNI