Teleglobe buy to boost VSNL revenues
VSNL's annual revenues could jump by 200 per cent in the year ending in March 2007 following its acquisition of Teleglobe.india Updated: Feb 16, 2006 13:26 IST
Indian telecoms service provider Videsh Sanchar Nigam Ltd said on Tuesday its annual revenues could jump by 200 per cent in the year ending in March 2007 following its acquisition of Teleglobe.
New York Stock Exchange-listed Videsh is expected to have revenues of Rs 38.3 billion ($866.5 million) for the fiscal year 2006/07, according to estimates.
A former state-run international telecoms monopoly now run by Tata conglomerate, VSNL had said the deal would give it network access in 240 countries and territories and interests or capacity in more than 80 subsea and terrestrial cables.
"We are now a key player in the international wholesale market, supporting more than 1,400 customers," N Srinath, Videsh Sanchar's executive director, said in a statement.
He said the combined networks would drive mobile, data and voice innovation.
Shares in Videsh Sanchar rose as much as 3.5 per cent to Rs 402.45 in weak Mumbai market.
In July, when it agreed to buy telecoms network services firm Teleglobe International Holdings Ltd for $239 million, VSNL officials had said the acquisition would catapult it to top-3 in international wholesale voice telecoms, after AT&T and MCI.
"Our decision to pursue the Teleglobe acquisition was based on several key areas of synergy, including complementary global infrastructure and product offerings," Srinath said.
Though Bermuda-based, a majority of Teleglobe's operations are driven out of Canada.
First Published: Feb 14, 2006 13:46 IST