Google, RCom in talks for Flag Tele cable deal
Internet major Google is in early stages of negotiations with Reliance Communications to take a part of the Flag Telecom’s trans-Pacific undersea communications cable on a long-term lease. Google is believed to be in talks to take on lease 500 GB bandwidth and this, according to industry sources, puts the deal size at around $80-100 million (Rs 320-400 crore). According to sources close to the development, the companies have initiated talks to set up a joint cable under a “cooperative arrangement”. Under the broad contours of the discussions, Flag Telecom will sell dark fibre to Google. This will help Google save the cost of duplicating a fibre optic network, which would cost around $350-380 million (Rs 1,400-1,500 crore).
