Pyramid Research has formed a strategic partnership with ITI Research to provide you with high-quality Telecom Company Reports of industry players worldwide. For more details view our press release here.
These comprehensive reports on leading telecommunications operators worldwide cover all aspects of their operations, including quarterly-updated Executive Briefings on over 100 operators.
Videsh Sanchar Nigam Ltd (VSNL) was incorporated in March 1986 as a limited liability company under the Indian Companies Act, 1956. On April 1, 1986, the company assumed control and management of all of the assets, employees and operations of the Overseas Communications Service, a department of the Ministry of Communications of the Government of India. The company was wholly-owned by the government until 1992. During 1997 and 1999, the government sold some of its equity holdings in VSNL through the issuance of global depositary receipts (GDRs). These GDRs were converted into American depository receipts upon the company's listing on the New York Stock Exchange in August 2000.
Following a competitive bidding process, in February 2002, the government selected Panatone Finvest as the strategic partner for the sale of its 71.2 million equity shares representing 25% of the outstanding voting capital of VSNL. The government also simultaneously divested around 1.85% of the outstanding shares of VSNL to its employees. In connection with the purchase of the shares from the government, Panatone was required to launch a tender/open offer for an additional 20% of the equity shares from other VSNL shareholders. Following the offer, Panatone's stake in VSNL increased to 45%. Other Tata Group entities have since made open market purchases and sales of VSNL's equity shares, and the consolidated shareholding of the Tata Group in VSNL as of September 30, 2005 was around 44.71% and the government's shareholding was around 26.12%.
VSNL is the leading provider of public international telecommunications services in India, directly and indirectly linking the domestic telecommunications network to around 240 territories worldwide for voice traffic. The company provides international telephony services, telex and telegraph services and, as of March 31, 2005, operated 11 international switching and transmission facilities at seven locations, which route international traffic to and from the domestic telecommunications network using a combination of satellite and undersea cable links. VSNL also has 14 other ILD points of presence for carrying voice traffic across the country. It also provides a range of data-related services.
Since the loss of its monopoly in international telephony services in 2002, VSNL has enhanced its other product offerings. The company has increased its emphasis on new products and services such as broadband, IP-VPN services, calling cards, Internet telephony and has increased the number of services for its corporate customers. It has also begun offering national long-distance services.
VSNL is also globalising its operations and capitalising on the liberalisation of emerging telecommunications markets. The company operates telecommunications services in Nepal and Sri Lanka, and is part of a joint venture which is licensed to offer telecommunications services in South Africa.
In July 2005, VSNL acquired the Tyco Global Network (TGN) and in February 2006 it acquired Teleglobe International Holdings.
