MUMBAI, INDIA: Telecom companies are going in for mega makeover, with telephony major Reliance Communications (RelCom) consolidating all its international operations under a single umbrella brand `Reliance Globalcom.`

This follows a similar such move by Tata group company Videsh Sanchar Nigam Ltd (VSNL) that integrated all its operations under a single brand, Tata Communications.

RelCom would also invest over $2 billion by 2009, while the company would also go in for an initial public offering (IPO) in the "near future."

According to Reliance Globalcom president Punit Garg (formerly CEO and president of Flag Telecom), the company will now become the holding company for the global operations of Reliance Communications, Flag Telecom and recently acquired Yipes Enterprise Service.

RelCom is present in global voice segment and sells cards like Reliance India Call, Reliance Global call, Reliance Netcall and Reliance Passport, while Flag Telecom is into submarine cable operations and US-based Yipes is an Ethernet technology major.

Commenting on the initiative, Garg said: "This will bring in a diverse portfolio of global communications business services like the global voice, managed network, carrier Ethernet and fibre capacity into a single group. This makes put go-to-market simpler, as our global customers would have to deal with only one customer."

Reliance Globalcom will also make an investment of $2 billion by 2009 in managed services network, infrastructure upgradation and capacity expansion of Flag. It will target the global telecom arena that has an annual addressable revenue potential of $285 billion.

With the consolidation of the global business, the company will have an annualised start-up revenue of $1.32 billion and EBIDTA of $334 million, he said.

Relcom has also changed the name of its subsidiary Yipes Enterprise Services to Reliance Globalcom Services and that of Flag Telecom as Reliance Flag. These companies will now function as the subsidiaries of Reliance Globalcom.

The new brand will have presence in over 50 countries including the top 20 financial centres in the world, including New York, London, Tokyo, Paris, Chicago, Toronto and Frankfurt, among others.

Earlier, VSNL was rechristened as Tata Communications and brought VSNL, VSNL International, Teleglobe, Tata Indicom Enterprise Business Unit and Cipris brands under its fold.

N Srinath, managing director and chief executive, Tata Communication, said: "We are pleased to announce the new name, which builds on the track record of the Tata group. The integration will enable the company to be present globally under a single brand."

(cmn@cybermedia.co.in)