Soon after arch-rival Tata-owned VSNL decided to enter global managed services and Nokia and Sun announced that they would shift their global managed services business to India, Anil Ambani's Flag Telecom has also decided to join the race.
As a first move, Flag has roped in the chief financial officer of Tata Consultancy Services Vinay Aggarwal to don the dual mantle of the CFO of Flag and also head the US business of the company as president (USA). In the past Aggarwal has also worked with Tata Unisys.
Apart from Aggarwal, the company has also roped in executives from global majors like MCI Verizon, Sprint and Cable and Wireless.
A Reliance Communication official confirmed that the top management of the company in a recent meeting has decided to move into the global managed services business.
He added that bringing in Aggarwal was a key move as he has experience in handling finances in multiple countries at the same time.
The company had been offering 'vanilla services' that entail simply providing bandwidth to clients. The managed services business on the other hand calls for providing various solutions that follow the setting up of bandwidth. These include creating an internal IP telephony network or providing video conferencing facilities between different offices.
This may include setting up connectivity between offices in different countries.
The global managed services business is a lucrative and logical expansion option for Flag Telecom, which is a subsidiary of Reliance Telecom.
The company has managed to notch up bandwidth sales worth $450 million since January 2006 and these sales have been boosted by the launch of the Falcon cable system that links the fast-growing Middle East market to the rest of the network. The company spokesperson said, "In fact, according to industry analyst Ovum, the bandwidth demand in the region is set to grow 10 times and will fuel demand for bandwidth on Falcon."
The spokesperson added "The capacity sales during the last 10 months have crossed over Rs 2100 crore. Since its launch in September 2006, over 50 per cent of the current capacity on the cable has been sold out to leading telecom companies and large enterprises."