Vsnl To Invest $300 Mn On India-europe Undersea Cable

leomax

FraudBand
[OP]
Regulars
Oct 26, 2005
314
0
Tatas-owned Videsh Sanchar Nigam Limited plans to lay an undersea cable between India and Europe, covering about 10,000 km, at an investment of over $300 million.

Senior VSNL officials confirmed the plan and said that the company was expecting to have enough demand for bandwidth by 2008 and keeping this in mind VSNL has undertaken the major project.

Since the cost involved is huge, the company is also discussing with a few companies in West Asia to share the expenditure.

The partnership could be in any form -- the companies may take capacity and become financial partners, the officials said.

VSNL is in talks with Etisalat of United Arab Emirates and Saudi Telecom of Saudi Arabia, besides a few others in Southern Europe.

The cable is likely to be laid from Mumbai passing through Gulf and Egypt to France or Portugal.

The company is in the process of preparing a project report and by August/September the blue-print is expected to be ready, they added.

Asked about the source of funding, sources said it would be partially from internal accruals and rest depends upon the response from other partners.

VSNL is talking with the vendors about the costing to tie up finances, sources said.

Asked about the demand for undersea terabyte cable, VSNL officials said there would be enough demand for bandwidth in India itself as it has become a big destination for IT and enabled services.

VSNL, claiming to have a broadband subscriber base of over one lakh, said broadband is coming up in India in a big way and this alone would generate sufficient demand for bandwidth, they added.

News from Rediff
News from ecnomic times
 

blr_p

Regulars
Regulars
May 26, 2005
3,935
12
Capacity = terrabyte ?Cost = $300mnbSNL annual profits = $10bnAvalilable = 2008unlimited internet = hopefully much sooner :)
 


netfreak

Regulars
Regulars
Sep 8, 2005
2,160
14
QUOTE(blr_p @ May 2 2006, 06:58 PM) [snapback]50020[/snapback]
bSNL annual profits = $10bn
[/b]

$10bn... thats an eye opener... :eek: :eek: :eek:

Are you sure??
 

leomax

FraudBand
[OP]
Regulars
Oct 26, 2005
314
0
That was an eye opener for me too :eek: http://economictimes.indiatimes.com/articleshow/1484507.cms

Anyone remembering the news(or was that a rumour) that bsnl is going to have thier own fiber to singapore by 2007/8?

We want low pinging networks to europe,we can get enough connectivity to north america through east and west,but the one that we really lack connectivity is to europe imo,especially considering amsterdam IX broke the 100Gbps barrier and they are the one of the largest (most largest?)
 

netfreak

Regulars
Regulars
Sep 8, 2005
2,160
14
Just checked that link, its not $10bn BSNL's profit was INR 10 bn. $10 bn profit would have made it a Fortune 100 company..
 


netfreak

Regulars
Regulars
Sep 8, 2005
2,160
14
Still pretty impressive... a govt owned company making ~$2 bn per year is a welcome surprise.
 

Sushubh

Administrator
Oct 29, 2004
413,844
12,771
Gurugram
ur forgetting abt ONGC and other oil companies. bsnl does not subsidize their offers to the indian customers... the oil companies lose crores of rupees everyday... ;)
 

netfreak

Regulars
Regulars
Sep 8, 2005
2,160
14
What is surprising here is profit of BSNL as compared to other telecom giants. E.g. AT&T's profit was $4bn and BSNL's profit is $2 bn. Normally I would not have thought BSNL to be in AT&T's league in terms on comp ratios. Similarly if you compare ONGC to Big comanies (e.g. Exxon) comps are not so impressive.Revenue numbers are:ONGC - ~$10 bn (~$2bn profit)Exxon - ~$370 bn (~$36bn profit)