Reliance Communication's Acquisition of Vanco

This recent news points to a possibly bigger of Reliance Communication than just a network service provider. While it does add the global footprint, it is interesting that this perhaps is their first foray into a virtual telecom service space.

Vanco is a Virtual Network Service Provider - not having it's own extensive network but rather front-ending with customers for network services, in turn sourcing transport from multiple other providers. While this gives them access to multiple providers, possibly dynamic-best-route and a higher degree of business continuity, they suffer from lack of control of services really as they need to depend on their alliance with the real providers, who also are in the same space.

Network services are always provided for customers by local companies. Most offshore leveraged outsourcing companies find it difficult to have a solid answer to the traditional providers or more often the traditional alliance between a local provider and one of the big outsourcing firms who would have jointly worked on multiple engagements in that geography. The offshore based players then attempt to have loose tie-ups for specific opportunities.

If Reliance gets into offshored based IT services, Vanco can provide an alternative thus.