Reliance Communications is planning to invest $1.5 billion (around Rs.7,000 crore) in Flag Telecom, its under-sea cable subsidiary over a period of three years.

The investment will help lay an additional 50,000 km of optic fibre cable. Flag Telecom will build the world's largest internet protocol (IP) network over submarine cable systems. Termed FLAG-Next Generation Network (FLAG NGN), the project will cater to over 5 billion customers across the globe. Flag's global network will span 1,15,000 km by December 2009, taking the total optic fibre assets of Reliance Communications to over 2,30,000 km.

Flag NGN will comprise four networks as follows:

• First will be an Asia connectivity link, will connect India, Malaysia, Indonesia, Vietnam, the Philippines, Brunei and Hong Kong.
• Second system will be for the African region and will connect Kenya, Mozambique, South Africa, Tanzania, Madagascar and Mauritius.
• Third will be for the Mediterranean region and connect countries like Greece, Cyprus, Turkey, Malta, Libya and Lebanon.
• Fourth will be a trans-Pacific link connecting the US west coast, Japan, China, and Hong Kong.

At present, Flag Telecom operates the world's largest private under-sea cable system spanning 65,000 km and has a customer base of over 200 leading operators, which include the top 10 international carriers. Flag's global network will have a capacity to carry 2.5 billion simultaneous voice calls, 300 million simultaneous web chat, and 52 million simultaneous video chat, and enable 20 million students in Indian educational institutions to pursue e-learning simultaneously.

Reliance Communications had acquired Flag Telecom for $207 million in October 2003.

Also See:

Reliance Communications raises $1 billion debt (15-Dec-06)