Reliance Communications acquires services firm

Monday, 24 December 2007, 04:38 Hrs
Printer Print Email Email
Mumbai: Reliance Communications Thursday said it has acquired the US-based data communications services company Yipes for $300 million to amplify its presence in the $100-billion global market for this industry.

The Federal Communications Commission (FCC), the regulator for the industry in the US, has given its nod to the acquisition by Flag Telecom, which is a part of the Reliance-Anil Dhirubhai Ambani Group, the company said in a statement.

"FCC approval is an important step for Reliance Communications to accelerate its plans to expand Yipes' coverage in US domestic market," said Punit Garg, chief executive of Flag and president of Reliance Communications.

"This step also paves the way to extend Yipes' services worldwide over Flag's global next-generation network, creating significantly more value from our undersea network in the strongholds of India, the Middle East and East Asia."

According to Flag, the global enterprise and institutional data services market is estimated at $100 billion, while the Ethernet services market is projected to become a $30.7-billion market by 2012.

Reliance Communications also plans to invest in the global expansion of Yipes' services and take its network coverage beyond the 14 key metropolitan markets in the US to offer combined solutions with expertise of both companies.

"Yipes' customers will enjoy broader coverage, access to more international markets and more rollout over new innovative services," the company said.
Source: IANS
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..