Thursday, August 26

Built for America, Sold (Cheaply) to the World : NY Times

NYT reports about the latest phenomenon in the global telecommunications; Telecom Majors from India , China and other non-American countries are acquiring Telecom Networks at fraction of the cost of the original investment. According to Sam Paltridge, an economist at Organization for Economic Cooperation and Development in Paris -
Some $30 billion in international telecommunications infrastructure owned by United States companies was sold to foreign-owned entities from 2000 to 2004 for a total of about $4 billion.

Take our very own example Reliance Infocomm has acquired FLAG telecom and now it is competing with TATA-VSNL for the aquistion of Tyco International's global fiber-optics network, 37,000 miles long and connecting three continents. On the other hand , Bharti Enterprises and Singapore Telecommunications have teamed to build a cable called i2i.

Related Story :
* IHT | U.S. loses dominance in global telecoms [ Asian firms lead rush to buy assets of ailing American giants ]