New-look Vanco targets big four

Vanco insists its recent acquisition by Reliance GlobalCom has transformed it into a credible fifth global data networking player alongside BT, Orange, AT&T and Verizon.

Reliance snapped up Vanco for $76.9m (£41m) in May after debt problems forced the virtual network operator to suspend its shares from the London stock exchange.

The India-based giant is amalgamating Vanco with its two data arms ­ submarine cable network Flag and Ethernet outfit Yipes ­ in a bid to build a global data business rivalling those of the big four.

Mark Thompson, who is heading up the combined operation as president of GlobalCom’s data business, said: “As an organisation we had built up a high degree of debt that we could not service. But that all changed at the point of sale.

“We are now debt-free, have changed to a more conservative accounting policy and have reduced our cost base.”

Thompson said a new executive team made up of Vanco, Flag and Yipes chiefs has been formed and estimated it would take six months to complete the integration.

“There are only five credible players and we have more capabilities for global enterprises than anyone else because we can get them anywhere in the world and have a leading Ethernet technology under our own brand,” he claimed.

However, Keith Humphreys, managing consultant at market watcher EuroLAN, said: “Vanco’s name has been besmirched and I am not sure that Reliance is a strong enough brand to adopt.”