MONDAY, NOVEMBER 01, 2004
VSNL to buy Tyco Global for $130 m
TIMES NEWS NETWORK
MUMBAI: Videsh Sanchar Nigam (VSNL) on Monday announced that it had entered into an agreement to acquire Tyco Global Network, which has a 60,000 km network of submarine cable systems, for $130 million. VSNL's rival, Reliance Infocomm, which earlier acquired Flag Telecom, was also in the race to acquire Tyco.
The VSNL agreement with Tyco follows a notice from the Federal Communications Commission (FCC) of USA which stated that VSNL America was granted Section 214 authority to provide International Telecommunication services from the United States. VSNL America is the US subsidiary of VSNL. The acquisition is subject to Government approval in the United States, India and other countries.
Tyco's network was valued at around $3.4 billion at the height of the telecommunications boom. It is estimated that international telecommunication assets worth $30 billion owned by US companies has been sold to foreign-owned entities, mainly Asian, between '00-04 for a mere $ 4 billion, after the telecommunication bubble burst. Most of these networks still carry a significant portion of the world's internet traffic.
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