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VSNL buys Tyco submarine cable network for $130m
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
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.