Indian Linkage

Sri Lanka Telecom on Monday signed a US$ 3 mn deal with India’s BSNL and technology giant NEC to set up a point to point fiber optic link between the two countries. Sri Lanka Telecom on Monday signed a US$ 3 mn deal with India’s BSNL and technology giant NEC to set up a point to point fiber optic link between the two countries. The submarine cable will add 10 gigabits per second of bandwidth between India and Sri Lanka, scalable up to 960 gigabits per second.

Sri Lanka Telecom officials refrained from making revenue projections, but said Bharath Sanchar Nigam’s (BSNL) 55 million fixed line customer base and the growing BPO links between the two countries offered significant revenue potentials for the local fixed line giant.

Industry watchers meanwhile expect the bulk of the revenue from the deal to come from Indian international traffic – routed via Sri Lanka Telecom’s international gateway infrastructure.

The move is also in line with Sri Lanka Telecom’s plans to become a hub in South Asia for international telecom traffic.

BSNL, since a preferred international carrier agreement with former Indian government owned VSNL ended in 2004, is looking