RCom gets FCC approval for Yipes buy

Reliance Communications (RCom) today announced that it has received approval from the Federal Communications Commission (FCC) for the acquisition of US- based Yipes Holdings Inc.

Reliance Communications had announced the $300 million acquisition of Yipes in July 2007. The transaction, which closed yesterday, is a key milestone in Reliance Communications' plan to become a global data communications leader, an official release said today.

The combination of Yipes' enterprise Ethernet services, the private undersea cable system of FLAG Telecom, a subsidiary of the company, and Reliance's commitment to expansion and growth will enable the creation of a global service-delivery platform with unmatched coverage and capability, the release added.

Punit Garg, president, global business, Reliance Communications, and CEO, FLAG Telecom, said: "The FCC approval is an important step for Reliance to accelerate its plans to expand Yipes' coverage in the US domestic market. This step also paves the way to extend Yipes' services worldwide over FLAG's global next-generation network creating significantly more value from our undersea network assets in the strongholds of India, the Middle East, and East Asia."