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India's VSNL plans $250mln telecoms cable to Europe

Wed Dec 19, 2007 3:10am EST

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MUMBAI, Dec 19 (Reuters) - Indian telecoms firm Videsh Sanchar Nigam Ltd VSNL.BO VSL.N said on Wednesday it would build a telecommunications cable connecting India with Europe for $250 million in partnership with two firms.

The announcement lifted the company's shares 7.8 percent to 657.10 rupees by 0732 GMT in a Mumbai market that was up 0.2 percent.

VSNL, a former state-run overseas telecommunications monopoly that is now controlled by India's Tata Group, said the cable would be built in partnership with private equity venture SEACOM and Telecom Egypt (ETEL.CA).

It will directly link Mumbai to Paris, London and Madrid via Egypt and will give VSNL 1.28 terabit of new capacity during 2009, the company said in a statement.

The Eurasia Cable System would also have future options for additional connectivity in the Gulf region and multiple locations in Europe, VSNL that is in the process of changing its name to Tata Communications said.

Last month, the company said it would spend $200 million on an intra-Asia submarine cable to be built by Tyco Telecommunications Inc (TYC.N) that would link Singapore, Hong Kong and Japan with an additional connection to the Philippines and, potentially, Vietnam. (Reporting by Devidutta Tripathy; Editing by Ranjit Gangadharan)



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