RCom global biz under new fold

Corporate Bureau
Posted: 2008-02-21 23:12:37+05:30 IST
Updated: Feb 20, 2008 at 2331 hrs IST

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Mumbai, Feb 20: Close on the heels of the Tata Group’s move to consolidate its global telecom business under Tata Communications, another telecom major, Reliance Communications Ltd (RCom), brought its global telecommunications business and operations under a new umbrella brand, Reliance Globalcom. The new entity, a subsidiary of RCom, also plans to come out with an initial public offer (IPO) in the future.

The London-headquartered Reliance Globalcom brings under its fold a portfolio of global communications business services, including global voice, managed network, carrier ethernet, and fiber capacity businesses into a single group. Reliance Globalcom would target the fast growing potential in the global telecom arena with annual addressable revenue potential of Rs 1,14,000 crore. With the consolidation of the global business, Reliance Globalcom will have annualised start-up revenues of Rs 5,279 crore and an EBIDTA of Rs 1,337 crore, a company statement said.

Anil D Ambani, chairman of Reliance Communications, said, “In creating Reliance Globalcom, we are aligning our global communications strategies into a single vision to create one of the top five global communications companies in the world. Reliance Globalcom, structured to serve the existing and emerging fast growing demands of our global customers, would add significant value for the shareholders of India’s largest and most profitable telecom enterprise.” The company is investing about $1.5 billion for implementing four new submarine cable systems, in Asia, Africa, the Mediterranean and Pacific regions. Reliance Globalcom would leverage world class fully IP-enabled global infrastructure of Reliance Communications and its subsidiaries, including 1,75, 000 kilometres of optic fibre and 20,000 kilometres of ethernet backbone in the US. The voice services, known as Reliance India Call, Reliance Global call, Reliance Netcall and Reliance Passport, will also come under Reliance Globalcom. RCom announced the alignment of its subsidiaries.