(4 September 2007 4:28 pm)

MUMBAI: Reliance Communications' Flag Telecom has signed a $1.5 billion turnkey contract with Fujitsu for the construction of Flag NGN cable, a multi-terabit, new generation DWDM submarine cable system.

This submarine cable will involve construction of four new cable systems across Mediterranean, East Africa, Asia and Pacific region.

Upon completion, which is likely by the fiscal year 2009-10, it will nearly double the length of existing Flag global network from 65,000 km to 1,15,000 km. It will also create capacity to carry 2.5 billion simultaneous voice calls, 300 million simultaneous web chats, 52 million simultaneous video chats. Flag will not only provide these services but manage them through global network operations with center located in Mumbai.

Reliance Communications chairman Anil Ambani said, "At the beginning of the year, we announced our $1.5 billion global expansion of Flag's global next generation network over the next few years. Today's announcement is a major initiative in that direction. Worldwide the global market for enterprise and institutional data services is a $90 billion market. With completion of NGN cable, Flag will be the only service provider to reach over 60 countries on a privately owned cable system coupled with the technology leadership to deliver broadband multimedia communications."

Under the terms of the supply contract which was won in open tender, Fujitsu will manage all areas of the cable build, including installation, commissioning and testing.

The initial system build will span over 10,000 km and offer significantly more high-quality capacity in the region to help address the growing traffic demands from the accelerating take up of broadband and multimedia services.

Fujitsu Ltd president and representative director Hiroaki Kurokawa said, "We are very pleased to participate in this new project with FLAG Telecom contributing to the global deployment of NGN. Building on our track record in jointly constructing submarine cable system together with Flag Telecom, we are confident that our close partnership will deliver an equally successful project this time. Leveraging cutting-edge Fujitsu photonic technology, we aim to contribute to the global roll-out of NGN and thereby enable users around the globe to fully enjoy the benefits of advanced broadband communications."

Flag telecom president Punit Garg said, "Flag NGN will create an unparalleled private global network and capability to deliver end-to-end IP services. It is targeted to benefit all customers and not just those in any one market or region of the world. The over 200 customers of Flag, 1,000 customers of Yipes and 850 of 1,000 corporates in India that are customers of Reliance Communications will directly benefit from the expanded reach. This will provide further impetus to our channel and strategic partners as they can expect to reap long term benefits through the ever-growing Flag network."