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Reliance Communications (RCOM), India’s second-largest telecom operator by subscriber numbers, may invite strategic investors to buy some part of its Flag undersea cable network as part of a plan to monetize unutilized assets.  It has invited preliminary bids and is expecting offers in about a few weeks from now, according to sources. However, it was not ascertained as to which sections of the 65,000-km cable network that connects 40 countries from the East coast of the United States to Japan, could be hived off to potential buyers.  

 

However, RCOM strongly denied that they intended selling parts of the Flag network. Flag is a part of Reliance Globalcom (RGL), which also includes RCOM’s enterprise services, which it sells to companies, besides the high revenue generating NLD and ILD operations.

 

RCOM may have taken a cue from Google’s purchase of a piece of the Unity fibre optic cable, which connects the US and Japan, in February 2008. RCOM is eyeing users with high bandwidth needs to sell pieces of Flag. IT and IT-enabled services providers

 and corporate enterprises are high bandwidth users.

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0.97 -0.05 (-4.90%)
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