VSNL Likely to Invest More in South Africa

As per reports, Infraco, South Africa’s third network operator, which has been formed to lower the broadband costs, is planning to invest close $700 million to build an undersea cable network. The cable network will connect Africa, America and Europe. Tata group-controlled Videsh Sanchar Nigam (VSNL) may invest close to $200 million for the cable project.

The South African telecom regulator has invited strategic partners to invest in the submarine cable project. Since VSNL has its own undersea cable projects across the globe, it is interested in equity participation in Infraco’s cable project.

Currently, the Tata group, through VSNL and Tata Africa, has a 26% holding in South Africa’s second national telecoms operator, Neotel. The Tata Groups Telecom ventures when clubbed together make them the third Largest Telecom Service Provider in India.