Thursday, June 30, 2005

India's VSNL Completes Acquisition of Tyco Global Network

Videsh Sanchar Nigam Limited (VSNL), India's leading provider of international telecommunications and internet services, completed its acquisition of the Tyco Global Network (TGN), a state-of-the-art undersea cable network that spans 60,000 km (37,280 miles) and the continents of North America, Europe and Asia. With the acquisition of TGN, VSNL is now one of the world's largest providers of submarine cable bandwidth. VSNL acquired the network for $130 million (not including the assumption of certain liabilities).

In addition to the submarine cables, the Tyco acquisition gives 30 Points of Presence in 12 countries in North America, Europe and Asia. VSNL also has business operations in Sri Lanka and Nepal and is soon entering South Africa.

VSNL has a strong pan-India domestic Long Distance presence. It is also a leading player in the Corporate Data Market in India, offering Frame relay, ATM and MPLS based IP-VPN services. VSNL also has a rapidly growing retail presence under the Tata Indicom brand through its products like high speed broadband, dial-up Internet, net telephony and calling cards, and has an Internet subscriber base of over 750,000 subscribers.

  • VSNL is part of the $17 billion Tata Group, which last year listed Tata Consultancy Services (TCS) on the Bombay Stock Exchange. TCS is Asia's largest software service provider and system integrator.

  • In 2004, the Reliance Group, India's largest business house, acquired the FLAG Telecom Group and its network of undersea fiber cables.

See also