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26 Aug 08

Financial Express : Telcos to put $400 m for EIG cable

State-owned Bharat Sanchar Nigam Ltd (BSNL), Bharti Airtel, Tata Communications (formerly VSNL) and Saudi Telecom are investing around $400 million in an undersea cable link -- The Europe India Gateway (EIG) cable. Though the other telecom firms have stakes in other submarine cables, this would be the first undersea cable owned by BSNL in which the company is investing $50 million. Sources said that the company’s board has approved the investment in the project.

Once the cable is up, it would help BSNL offer more competitive rates for its broadband and international long distance tariffs.

BSNL, which is the largest broadband service provider in the country, derives as much as Rs 2,000 crore revenue from the segment, but analysts say that it stands a huge threat from Wi-Max, and the only way forward is capacity expansion which will be best done through participating in such consortiums.

Currently, Anil Ambani-led Reliance Communications and Bharti Airtel have the bandwidth axis rate control, and for BSNL, investing in undersea cable links, will allow it to keep a check on the costs as it is expected to reduce its reliability on the former two companies.

www.financialexpress.com/...353266 - Preview

undersea cables europe india telephony BSNL broadband

29 May 08

DoT removes cap on number of bandwidth resellers

In a move that would improve the availability of cheaper international bandwidth in the country, the Telecom Commission, the apex policy making body of the Department of Telecom, has given its approval for allowing unlimited number of bandwidth resellers in the country.

Bandwidth resellers are companies, which do not own any infrastructure, but buy capacity from large international long distance service providers like VSNL or AT&T and then resell it to consumers like business process outsourcing units. This could result in cheaper Internet services and international long distance calls.

The move will benefit larger consumers of bandwidth such as ITeS companies, BPOs and Internet service providers who will be able to buy bandwidth from the resellers at much lower costs.

www.businessline.in/...print.pl - Preview

DoT TRAI telephony broadband internet

  • In a move that would improve the availability of cheaper international bandwidth in the country, the Telecom Commission, the apex policy making body of the Department of Telecom, has given its approval for allowing unlimited number of bandwidth resellers in the country.


    Bandwidth resellers are companies, which do not own any infrastructure, but buy capacity from large international long distance service providers like VSNL or AT&T and then resell it to consumers like business process outsourcing units. This could result in cheaper Internet services and international long distance calls.


    The move will benefit larger consumers of bandwidth such as ITeS companies, BPOs and Internet service providers who will be able to buy bandwidth from the resellers at much lower costs.

17 May 08

Bharti joins new consortium to lay India-UK cable system

  • Bharti Airtel has joined 15 other global telecommunication majors to build a new undersea cable connecting India to the UK.


    The 15,000-km Europe India Gateway (EIG) cable system will cost more than $ 700 million and will connect 13 countries across three continents. The cable is expected to carry commercial traffic by second quarter 2010. This is the sixth undersea cable in which Bharti will be investing.

  • The new cable system will compliment Airtel’s existing high bandwidth cables and its recent investments in the I-ME-WE, Unity Cable system and Asia America Gateway cable systems. The company currently has two international landing stations in Chennai that connect its two existing submarine cable systems - i2i to Singapore and SEA-ME-WE-4 to Europe, and is building an additional cable landing station in Mumbai to land the SEA-ME-WE-4 cable.
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