"Yipes has 22,000 km of optic fibre network... has operating margin of 55 per cent and is cash positive," Reliance Communications chairman Anil Ambani said. He said Reliance Communications, which owns Flag, will spend Rs 1,000 crore (Rs 10 billion) to roll out Yipes' services in Asia, Africa Middle-East and Europe in the next one year.
Yipes existing customers include Verizon and NTT. RCOM also sees a four to five per cent increase in revenues of Yipes over the next 4-5 years. Ambani said Pramod Haque, managing partner of Norwest Venture Partners would be joining the company.
Flag Telecom is a leading provider of international network transport and data services to telecom operators and content providers and Internet communities across the globe.