Reliance Communications Sets Up Company For Its Global Operations - Reliance Globalcom

[Nirvana 4]

Press Trust of India

Wednesday, February 20, 2008

Anil Ambani group's telecom arm Reliance Communications said on Wednesday that it would look for an IPO of Reliance Globalcom, the newly incorporated umbrella brand for all its international businesses. The company today announced setting up of Reliance Globalcom, to be headquartered in London with annualised start-up revenue of $1.32 dollars, under which all its global operations would be consolidated.

The new entity would target the fast-growing global telecom market with an annual addressable revenue potential of $285 billion the company said. "In creating Reliance Globalcom, we are aligning our global communications strategies into a single vision t o create one of the top five global communications companies in the world," said the Reliance Communications Chairman, Mr Anil Ambani in a statement.

Reliance Globalcom would bring under its fold a diverse portfolio of global communications business services, including Global Voice, Managed Network, Carrier Ethernet, and Fiber Capacity Businesses into a single group. When asked whether the group would look at an IPO for the new entity, the president of Reliance Globalcom Mr Punit Garg said, "It will look for an IPO in the future... We have tasks laid out for Globalcom. Once we acheive that then we will go for an IPO."

"Reliance Globalcom, structured to serve the existing and emerging fast growing demands of our global customers, would add significant value for the shareholders of India largest and most profitable telecom enterprise," Mr Ambani added.

Yipes Enterprise Services Inc. today announced that its Board has approved the change of the company's name to Reliance Globalcom. The name change is part of the strategy to consolidate the global communications businesses of Reliance Communications into a single

business group. Reliance Globalcom will deliver a broad portfolio of data and voice services spanning enterprise, wholesale, managed services, and consumer segments by leveraging FLAG's global telecom infrastructure and Yipes' expertise in plug-and-play Ethernet technology.

"Our name change represents a significant step in our evolution to serve the global needs of our customers. While our name has changed, our services and passion for customer service remain the same," said John Scanlon, president of Reliance Globalcom's Enterprise business unit. "Reliance Globalcom services are backed by the same service-level guarantees and will continue to be supported by our Global Network Operations Center (GNOC) in Denver, Colorado."

U.S.-based Yipes, an Ethernet services company recently acquired by Reliance Communications, will now represent the Enterprise business unit of Reliance Globalcom. Customers of Reliance Globalcom will continue to receive the same industry-leading managed Ethernet and application delivery services previously provided by Yipes.

In December 2007, Reliance Communications closed its acquisition of Yipes for U.S. $300 million. Reliance Communications has committed an additional U.S. $200 million for expansion in the U.S. and into other countries. Reliance Globalcom owns over 20,000 kilometers of fiber in the U.S. and operates one of the largest carrier Ethernet networks in the world.

According to Infonetics Research, the market for global Ethernet services will grow to U.S. $25 billion by 2010. Reliance Globalcom serves more than 1,000 enterprise customers with Ethernet-based high-performance network services that are easy to implement and manage and that are scalable to 1 gigabit per second. The company will leverage its expertise in providing customer-focused, Ethernet-based solutions into new areas of global data communications.

For more information, visit www.relianceglobalcom.com