Undersea Glut Over


Tata-VSNL buying Tyco, Singapore Telecom buying pieces of Global Crossing and Reliance Infocomm snapping up Flag Telecom – these were early signs that the much awaited rationalization in the undersea cable market might be happening. More anecdotal proof of that trend. Bermuda-based Southern Cross Cable, a joint venture of Singapore Telecom and Telecom Corp of New Zealand sold nearly $176 million of capacity on its undersea cable that connects US with Australia and New Zealand. This will give Southern Cross enough room to refinance debt and return cash to its owners, who guaranteed $151 million of its bank loans in 2003, Bloomberg reports. It is not clear who bought the capacity. One thing which is becoming obvious is that the huge adoption of broadband worldwide is boosting demand for transnational traffic.

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