Sunday, October 31, 2004

Tata's VSNL to Acquire Tyco's Global Network of Submarine Telecom Cables

Videsh Sanchar Nigam Limited (VSNL), India's leading international telecom carrier, agreed to acquire Tyco Global Network for US$130 million. The acquisition, which remains subject to government approval in the United States, India and other countries, would give VSNL control over a network that spans 60,000 kilometers (37,280 miles) and three continents.

VSNL is part of the $14 billion Tata Group, which recently listed Tata Consultancy Services (TCS) on the Bombay Stock Exchange. The TCS listing was the largest initial public offering by a private sector corporate in Indian history. VSNL said it intends to leverage the IT strengths of the Tata Group in providing services to large enterprises across the world. http://www.vsnl.com

  • In September, VSNL America, a local affiliate of India's Tata managed Videsh Sanchar Nigam Limited, was granted an International Common Carrier 214 License from the FCC to own and manage a U.S. network. The company plans to serve U.S. multinational corporations looking to penetrate key emerging markets such as India.

  • In October 2003, Reliance Group, India's largest business house with total revenues of US$16.8 billion, agreed to acquire FLAG Telecom Group for $207 million, representing a premium of more than 50% over the closing price of FLAG's shares on 15-Oct-03. Reliance Infocomm is one India's largest mobile service providers and operates a national, high-capacity network.


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