Reliance Communications Plans 68,000 km Subsea Cable Linking Europe and Asia
Reliance Communications (RCom) has announced plans to build a 68,000-kilometer subsea cable system connecting Europe and Asia. This Reliance Communications subsea cable project aims to boost global data capacity and support rising demand for cloud and telecom services.
Reliance Communications Subsea Cable Project Expands Global Reach
To begin with, RCom (https://www.rcom.co.in) will develop the system through its subsidiary Global Cloud Xchange (GCX) (https://www.globalcloudxchange.com). The cable will connect India to Italy in the west and Hong Kong in the east, forming a major international data corridor.
As a result, the project will significantly improve connectivity across key global markets.
High Capacity and Revenue Potential
The new cable will increase RCom’s network capacity by ten times. In addition, company leadership expects the system to generate up to $1 billion in annual revenue.
Furthermore, the project aims to reach more than 75% of the world’s youth population, reflecting its global scale and strategic importance.
The cable is scheduled to become operational by the third quarter of 2020.
Strong Investment and Partner Support
Meanwhile, RCom has secured backing from multiple partners, including Alibaba (https://www.alibabagroup.com). These partners have already committed approximately $300 million toward the project.
In total, RCom expects to raise over $700 million through pre-sales, exceeding the estimated $600 million project cost. Additionally, the number of investors could grow to as many as 30 partners.
Strategic Shift Toward Enterprise and Cloud Services
At the same time, RCom has shifted its focus toward the enterprise and data services market. The company recently exited its consumer wireless business to concentrate on higher-growth segments.
As demand for IT and telecom services increases, RCom expects strong growth over the next decade. Therefore, the company is investing heavily in subsea cable infrastructure to support future demand.
