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VSNL to invest $ 50 million in global-scale digital highway project

The Videsh Sanchar Nigam Limited has signed an MoU for joining the safe cable project with a proposed investment of $ 50 million.

The safe cable system, expected to be commissioned in 2000, would open up a new digital connectivity highway between India, the Far East and the entire African continent.

The safe cable system, complemented by South Atlantic Telephony 3 and West African Submarine Cable, is expected to provide a high-quality and cost-effective connectivity to the rapidly developing countries in the African continent.

Commenting on the corporation's participation in the safe cable project, acting Chairman and Managing Director Amitabh Kumar said, ''Joining safe cable system will open a new opportunity for VSNL and India to carry traffic to a rapidly developing continent of Africa and also open a transit point in India between various cable systems. The safe cable system is expected to open a new stream of revenues from transit services and benefit from intercontinental traffic in the coming years,'' he said.

The cable system landing point will be at Ernakulam in Kerala. The common landing is expected to position Ernakulam as a hub for transiting between the countries connecting the regions from the Oceania, Far East and Gulf regions to African commitment via the common landing at Ernakulum.

The initial parties to the MoU are South Africa, Malaysia, Mauritius, Cable and Wireless.

VSNL would become one of the largest investors in the project next only to South Africa, promoters of the project. VSNL proposes to invest about $ 50 million in the enterprise.

The total project cost is estimated to be in the range of $ 550 million and $ 600 million.

UNI