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Reliance Jio and other countries sign the Construction and Maintenance Agreement (C&MA)

2 May 2013 2,067 views No Comment

Reliance Jio, Telekom Malaysia Berhad (TM) (Malaysia), Vodafone Group (UK), Omantel (Oman), Etisalat (UAE) and Dialog Axiata (Sri Lanka) will form the consortium of the BBG. Reliance Jio owns the BWA spectrum in India and is going to invest in the Bay of Bengal submarine cable system to improve its functioning.

Construction and Maintenance Agreement (C&MA) and the Supply Contract for BBG has been signed on 30th April 2013 in Kuala Lumpur. The following were present at the contract:

  1. Rozaimy Rahman, Executive Vice President, Global & Wholesale, TM;
  2. Rick Perry, Head of International Development, Vodafone Group Technology, Vodafone;
  3. Ali Amiri, Executive Vice President, Carrier and Wholesale, Etisalat;
  4. Sohail Qadir, Vice President, Omantel;
  5. Mathew Oommen, President, Reliance Jio Infocomm Limited; and
  6.  Dr. Hans Wijayasuriya, Group Chief Executive Officer of Dialog Axiata Sri Lanka.
  7. The witness was Datuk Bazlan Osman, Group Chief Financial Officer, TM.

The submarine cable system is approximately 8,000 km long. The BBG submarine cable system is going to link Malaysia, Penag and Singapore to the Middle East i.e. Oman and UAE. The connections will touch Sri Lanka also and in India the high places would be Mumbai and Chennai.

BBG is constructed to provide connectivity to the following:

  1. South East Asia,
  2. South Asia
  3. Middle East,
  4. Europe,
  5. Africa
  6. Far East Asia will get interconnectivity with other cable systems in India, Middle East and Far East Asia which exist already or are newly built.

Bay of Bengal cable system provides an opportunity for business growth at a high level. It will shore up the existing and potential high capacity requirements from the nearby quarters of the region. BBG will benefit the next generation Internet applications too.

“This development is extremely positive for the telecom industry. Infrastructure sharing is the in-thing as telecom has become highly competitive. For the consortium members, the capex will be much less. This move will lead to consolidation,” – Ankita Samani, IT & Telecom analyst, Angel Broking.

“Construction of this undersea cable system is a clear indication of growing demand for bandwidth in participating countries. The markets are expected to see strong growth with the continuous efforts in embracing broadband technologies and infrastructure expansion,” says an official RIL statement.

BBG will use the state-of-the-art 100 Gbps technology. Using the same, it will provide upgradable and transmission facilities to the customers. BBG cable system is expected to be launched by the end of 2014, as notified earlier too.

Reliance Jio has already signed pacts with the following two:

  1. Reliance Communications, regarding the optic fiber access in India
  2. Bharti Airtel, regarding international bandwidth i2i submarine cable.

Reliance Jio looks forward to an even better deal in the international market as it now becomes the cynosure after partnering with BBG.

Relaince Jio

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