This agreement will result in considerable enhancement of Flag‘s VPN access across areas where it is not present currently. Vanco will also benefit by access to Flag‘s global service capability across India and the Middle East.

Speaking on the initiative, Flag president Punit Garg said, "Vanco provides significant enhancement to our already extensive cable network, fulfilling the reach that our customers are looking for. This agreement provides Flag and its customers access to a further 81 countries allowing us to extend our network to over 100 countries across the globe."

MPLS (Multi -Protocol Label Switching) gives network operators a great deal of flexibility to divert and route traffic around link failures, congestion, and bottlenecks that further enhances the levels of service standards currently offered by Flag especially connecting developing markets like India and the Middle East to the developed markets.

Explaining the strategic value of the tie-up Vanco chief executive Allen Timpany said, "There is a great deal of synergy in our businesses. Vanco is fast becoming the definitive partner for Asset Based Carriers (ABC) like Flag Telecom, who are looking to extend their physical networks and offer their customers global solutions. Likewise, our customers will benefit from Flag‘s strong coverage, especially into India and the Middle East, which are among the fastest growing markets in the world."