Reliance acquired the FLAG network, which lies at the heart of its global operations, in 2003 for $207 million, and now sells both capacity on the network as well as more lucrative telecoms services to other carriers and companies around the world.

Sources said Reliance had hired Deutsche Bank to advise on the sale and that bids were due in late January. Deutsche Bank declined to comment. Analysts said the large debt of the company and its ongoing capital expenditure for GSM expansion in India had required it to scout around for various options to raise funds.

A Reliance spokesman, who did not want to be named, said: “We vehemently deny these speculations and rumours.” The FLAG business, which stands for Fiber-optic Loop Around the Globe, is run by Reliance Globalcom, company’s overseas arm. Reliance is also selling Yipes, California-based ethernet service provider it bought in 2007. Yipes, which was renamed Reliance Enterprise Solutions.