China Telecom Flags Order From Reliance

Mumbai, Aug 26 | Updated: Aug 27 2004, 05:30am hrs
Reliance-owned Flag Telecom has bagged a multi-million dollar deal from state-owned telecom major China Telecom to provide high quality connectivity between China and the US West coast. This is said to be one of the largest ever cash deals to date.

The deal will be for STM-16s (synchronised timing modules) providing substantial 30Gbits/s capacity between China and the US (one STM is 155 gbps). The STM-16s will provide full-circuit, high quality connectivity to carry large volumes of voice, data and Internet traffic between China and the US West Coast, said a statement from Flag Telecom.

In meeting China Telecoms requirements, Flag Telecom is providing an integrated solution based on its FLAG North Asia Loop (FNAL) system and Tyco Telecommunications TGN Trans-Pacific cable.

China Telecoms deputy general manager Chang Siu Ping, said, This agreement ensures we meet the anticipated growth in new broadband services. Flag Telecoms CEO Patrick Gallagher, said, This demonstrates China Telecoms confidence in FLAGs ability to meet their exacting quality requirements.

Flag Telecom president Asia Pacific Owen Best said broadband subscribers in China grew by more than 14 per cent to 2.85 million in the first quarter of this year. Although China has the largest number of broadband users in Asia, we have yet to see penetration rates achieved in Korea and Japan.