VSNL's India-Europe network to be ready soon, to cost $200m
The Economic Times — August 25, 2006

Tatas-owned VSNL is all set to complete its global footprint and will invest up to $200m for a 9,000 km direct cable link between India and Europe via North Africa. The announcement of the new project is expected to be made shortly. According to market watchers, the India-Europe segment is seen as the missing link in VSNL's ambitions to be global major in the undersea cable business. The new cable will provide VSNL direct connectivity in the lucrative South East Asia-Europe segment as this will be linked to the company's India-Singapore Tata Indicom cable.

Sources close to the development added that this cable would connect India to one of three landing stations of VSNL-owned Tyco network in Africa. VSNL also owns the Trans-Pacific Tyco cable network, which connects the US, Australia and Asia, and is partner in the Se-Me-We-3, Se-Me-We-4 and SAFE consortiums. The 38,000 km Se-Me-We cables connects South-East Asia-Middle East-Western Europe, while the 80-gigabit and 29,000 SAFE has landing stations in Cape Town in South Africa, Mauritius and Penang, Malaysia.

While the Se-Me-We-3 and Se-Me-We-4 connect Asia to Europe, this sector is seen as VSNL's weakest link as the company is just part of the consortiums on these cables. According to industry sources, VSNL would also be making announcements on two other fronts soon. The first would involve announcing it's joining the EASSy cable consortium, which is a 9 900-km-long undersea fibre-optical system linking more than 20 coastal and landlocked countries in East and Southern Africa. About 23 ministers from as many African countries are set to meet in Rwanda on August 28 and 29 to sign the official protocol for the EASSy cable.

Sources said VSNL was open to connecting the EASSy cable to its network, thus providing Africa connectivity to Asia, the Gulf countries, Europe and North America. Besides, VSNL will also announce launch of its maiden South Africa venture, SNO Telecommunications. VSNL has invested over $250m and has a 26 per cent stake in SNO, which will kick off operations next week. SNO Telecom will become the second fixed line operator in South Africa and will also offer national and international private leased circuits, virtual private networks and internet connectivity.