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Reliance Communications to construct 68,000 km submarine cable

File photo. Photograph:( Zee News Network )

WION Web Team Delhi, India Jan 16, 2018, 09.30 AM (IST)

Reliance Communications is all set to construct a 68,000-km undersea cable to facilitate data supply across Europe and Asia.

The estimated cost of the project is somewhere around to $600 million.

RCom's subsidiary, Global Cloud Exchange, is vested with the responsibility of laying the cable which will connect India as its base to Italy on the West and Hong Kong to the East.

The system is expected to boost Global Cloud Exchange's revenue in five years and will be operational by the third quarter of 2020.

The project will also yield $1 billion per year as revenue, RCom's chief executive Bill Barney told reporters.

According to the official statement, the company aims to get over $700 million through pre-sales. The cable will be financed by as many as 30 partners.

Jack Ma's Alibaba has already struck a partnership for the cable and raised $300 million in commitments, Barney noted.

The company expects a spurt in IT and telecom activity in the country over the next five to ten years, due to which it is betting on the cable business, Barney shared. 

The Anil Ambani-led company was reported to reel under debts worth Rs 45,000 crore.

The company exited the consumer-facing wireless business late last year to focus on the enterprise segment.

The Mukesh Ambani enterprise, Reliance Jio, brought Reliance Communications spectrum for an estimated Rs 23,000 crore last month.

The deal prevented a slew of insolvency petitions and eventual liquidation for the Anil Ambani corporation.

(With inputs from PTI)